governments establish the optimal city size when production processes involve environmental pollution. Our analysis delivers two … key insights. First, if an optimal scheme to regulate environmental pollution is implemented, cities chosen by local … governments are never too large. They are too small if pollution is purely global, but at the optimal size, if pollution is purely …

complementary taxation of carbon emissions and local air pollution. We quantify results for the European power market until 2050 …. Taxing only air pollution results in social cost of 5,890 billion € and fosters nuclear deployment. Taxing only carbon yields … €. Moderate carbon taxation can be complementary to a primary policy of air pollution abatement. On the contrary, a primary policy …