Zusammenfassung:
Many cities in developing countries suffer from bad health and environmental conditions due to urbanization. The paper shows that increasing urban manufacturing congestion costs do not necessarily imply a reduction of a city's health as well as of environmental quality as one could expect ex-ante. The model distills a range of the urban manufacturing sector size which generates a triple dividend: a situation in which the government can simultaneously improve health, reduce pollution, and increase the productivity of labour by investing in either green capital or urban infrastructure that reduces congestion costs.