Identifying Optimal City Size for Sustainable Urban Development and Resource Allocation

Article DOI: https://doi.org/10.57017/jgsd.v2.i2.06

Author(s):

Anushree KONAR Symbiosis Centre for Urban Studies (SCUS), Symbiosis School of Economics (SSE) Symbiosis International (Deemed University), India
Sabyasachi TRIPATHI Symbiosis Centre for Urban Studies (SCUS), Symbiosis School of Economics (SSE) Symbiosis International (Deemed University), India
Kaivallyaa MUJUMDAR Symbiosis Centre for Urban Studies (SCUS), Symbiosis School of Economics (SSE) Symbiosis International (Deemed University), India

Abstract:

Identifying the optimal population size at which cities maximize economic benefits while minimizing congestion and pollution is a challenge. This research explores the optimal city size by examining the relationship between population and economic performance, measured by city GDP. Using data from OECD regions for about 562 cities, the analysis employs a quadratic regression model to test an inverse U-shaped relationship between city population and GDP in 2020. The empirical results show that cities initially experience economic growth as populations increase. However, after a certain point (8.85 million), the benefits diminish due to congestion and pollution in the short run. However, the optimum city population size may increase to 15.2 million in the long run. The study concludes that an optimal city size exists, balancing the advantages of agglomeration with the costs of urban expansion. Additionally, population density, territorial fragmentation, working-age population, and built-up area positively affect city GDP, whereas air pollution negatively impacts it. Finally, several policies are recommended for sustainable urban development and efficient resource allocation.

© The Author(s) 2025. Published by RITHA Publishing under the CC-BY 4.0. license, allowing unrestricted distribution in any medium, provided the original work, author attribution, title, journal citation, and DOI are properly cited.

How to cite:

Konar, A., Tripathi, S. & Mujumdar, K. (2025). Identifying Optimal City Size for Sustainable Urban Development and Resource Allocation. Journal of Global Sustainability and Development, Volume II, Issue 2, 117 – 130. https://doi.org/10.57017/jgsd.v2.i2.06

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