Spatial environmental economics

Balboni, C.ORCID logo & Shapiro, J. S. (2025). Spatial environmental economics. In Donaldson, D. & Redding, S. J. (Eds.), Handbook of Regional and Urban Economics (pp. 585 - 652). Elsevier (Firm). https://doi.org/10.1016/bs.hesreg.2025.06.008
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How do environmental goods and policies shape spatial patterns of economic activity? How will climate change modify these impacts over the coming decades? How do agglomeration, commuting, and other spatial forces and policies affect environmental quality? We distill theoretical and empirical research linking urban, regional, and spatial economics to the environment. We present stylized facts on spatial environmental economics, describe insights from canonical environmental models and spatial models, and discuss the building blocks for papers and the research frontier in enviro-spatial economics. Most enviro-spatial research remains bifurcated into either primarily environmental or spatial papers. Research is only beginning to realize potential insights from more closely combining spatial and environmental approaches.

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