Task 3

We extend the theoretical urban economics literature towards a richer integration of environmental aspects (air pollution and green spaces), both in terms of environmental variables accounted for and heterogeneity of households’ valuation. In a nutshell, we evaluate whether and how environmental trade-offs are incorporated in residential location choices and the resulting residential property values. Differentiated behaviors are expected depending on the city groups formed in Task 2. Attention will be given to intra-urban organization (built-up and non-built-up land; shape, size and access to green areas; networks), spatial externalities and feedback effects.