AUTOMOBILE USE AND LOCATIONAL INTERDEPENDENCIES

ABSTRACT. Congestion and pollution externalities from automobile use are simultaneously included in an urban monocentric model. The externalities enter household utility functions directly, and result in a complex interdependency in household location decisions in the city. Implications of the model are drawn out by a simulation and complete sensitivity analysis. The two unpriced externalities are examined for their impact on urban structure, and contrasted with each other. Also, the effect of changes in speed of travel are examined for the impact on urban structure. Speed affects the level of both external effects, and is affected by location decisions.