Xepapadeas, Anastasios; Kyriakopoulou, Efthymia - Fondazione ENI Enrico Mattei (FEEM) - 2009
We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of emissions - and an immobile production factor act as centrifugal forces, while positive knowledge spillovers and...