We study the optimal and equilibrium size of cities in a city system model with environmental pollution. Pollution is …, if pollution is local or per capita pollution increases with population, we find that equilibrium cities are too large …. When pollution is global and per capita pollution declines with city size, however, equilibrium cities may be too small …

which exhibits distortions due to pollution, external landfilling costs and inefficient product design. The allocative …

estimates approve the "pollution haven" hypothesis, which postulates that the polluting industrial activities of developed …