2000/04/01 by Jan K. Brueckner · 897 citations
Economics, Econometrics and Finance · Social Sciences · #Economic and Environmental Valuation #Housing Market and Economics #Urban Transport and Accessibility
paper · doi:10.1177/016001700761012710
published in International Regional Science Review 23(2), 160-171 (SAGE Publications)
crossref issued 2000/04/01 · crossref published 2000/04/01 · crossref published-online 2000/04/01 · crossref published-print 2000/04/01 · openalex publication_date 2000/04/01 · crossref created 2003/07/18 · openalex created_date 2025/10/10 · crossref deposited 2026/04/29 · crossref indexed 2026/07/30 · openalex updated_date 2026/07/30
This article argues that urban spatial expansion results mainly from three powerful forces: a growing population, rising incomes, and falling commuting costs. Urban growth occurring purely in response to these fundamental forces cannot be faulted as socially undesirable, but three market failures may distort their operation, upsetting the allocation of land between agricultural and urban uses and justifying criticism of urban sprawl. These are the failure to account for the benefits of open space, excessive commuting because of a failure to account for the social costs of congestion, and failure to make new development pay for the infrastructure costs it generates. Precise remedies for these market failures are two types of development taxes and congestion tolls levied on commuters. Each of these remedies leads to a reduction in the spatial size of the city.