Effects of land use and transportation policies on the spatial distribution of urban energy consumption in Brazil

Abstract

We evaluate the spatial effects of urban land use and transportation policies on energy consumption in the Brazilian economy. The model developed in this paper treats as endogenous the urban spatial distribution of residential location, structure density, commuting behavior, and energy use, facilitating a general equilibrium energy accounting of policies affecting transportation costs or land use. We calibrate this model with respect to five monocentric Brazilian cities in order to assess the implications three distinct policies: a change in the gasoline price, vehicle fuel efficiency regulations, and a change in the price of agricultural land. Gasoline price increases reduce energy consumption directly though reduced commuting and indirectly through higher residential density. On the other hand, while fuel efficiency regulations reduce energy consumption in total, the direct effect is somewhat offset by the indirect effect of sprawl which increases energy consumption. Increases to the price of agricultural land increase the energy efficiency of the city by increasing density and shortening commutes.