International Review of Environmental and Resource Economics > Vol 10 > Issue 1

How Does Urbanization Affect the Economy and the Environment? Policy Challenges and Research Needs

JunJie Wu, Department of Applied Economics, Oregon State University, USA, junjie.wu@oregonstate.edu Walid Oueslati, Environment Directorate, Organisation for Economic Co-operation and Development, Paris, France, walid.oueslati@oecd.org
 
Suggested Citation
JunJie Wu and Walid Oueslati (2016), "How Does Urbanization Affect the Economy and the Environment? Policy Challenges and Research Needs", International Review of Environmental and Resource Economics: Vol. 10: No. 1, pp 1-35. http://dx.doi.org/10.1561/101.00000081

Published: 23 Nov 2016
© 2016 J. Wu and W. Oueslati
 
Subjects
Environmental Economics,  Law and Economics,  Environmental politics,  Public policy,  Urban politics
 
Keywords
JEL Codes: Q24Q28Q56
UrbanizationAgglomeration economiesCongestion costsEconomic growthEcosystem services
 

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In this article:
1. Introduction
2. The Framework and the State of Economic Analysis
3. Urbanization and Land Use Policies
4. Policy Challenges and Research Needs
5. Conclusion
References

Abstract

Urbanization is arguably one of the most pervasive socioeconomic forces affecting economic development, ecosystem health, and humana well-being. This paper analyzes the interaction between urbanization, economic development, and environmental quality and provides an overview of the literature on the interaction. We argue that the complex roles of urbanization in the economic and ecological systems necessitate a new policy approach to urbanization management. This paper also provides a brief overview of land use policies at local, regional and national levels in the European Union and the United States and discusses policy options for urbanization management. It concludes with a brief discussion of policy challenges and research needs for efficient urbanization management.

DOI:10.1561/101.00000081