Kyriakopoulou, Efthymia; Xepapadeas, Anastasios - In: Regional Science and Urban Economics 43 (2013) 1, pp. 101-116
We explain the spatial concentration of economic activity when the cost of environmental policy – which is increasing in the concentration of pollution – acts as a centrifugal force, while positive knowledge spillovers and a site with natural cost advantage act as centripetal forces. We...