What Does Sustainable Development Change to the Location of Activities?

By Jean-Marie Cardebat, Anne Musson

English

"This paper analyses the consequences of the emergence of sustainable development, using economic geography theory. It explains what is meant by an economic model reoriented toward sustainable development. Three questions are tentatively answered: what are the negative externalities generated by the current scheme for the international location of firms; how can these externalities be integrated into economic geography theory; and what would be the firms’ location decisions in a green economy? The links between sustainable development and location choices by firms are detailed. The chosen theoretical framework is presented and justified. Finally, model simulation results are presented prior to concluding remarks. JEL codes: F12, F18, Q56"

Keywords

  • economic geography
  • environmental norms
  • firms location
  • sustainable development
  • transport costs
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