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Suppose that commuting emits pollution that contributes to global warming. Also, suppose that cities impose height restrictions that are the same across all cities.
(a) Draw a graph showing the shape of the housing price curve in a monocentric city with and without height restrictions
(b) How does imposing height restrictions affect emissions?
(c) How does imposing the same height restriction affect the level of emissions in large cities relative to small cities?
(d) Now suppose that in addition to having global effects, the level of local emissions also affects the health of local residents. Describe how this changes the impact of height restrictions in large vs. small cities.
(e) How do these results relate to the findings of Glaeser and Kahn (2008)?
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