Yu and Rhee (2011) proposed a methodology that simplifies the first-order derivative of the welfare function in the land use-transportation model a la Anas and Kim (1996). I extend their methodology into the second-best world where there are preexisting distortionary taxes. This institutional setting is what has been commonly adopted in the environmental economics of Pigouvian taxes. In this broad line of literature, however, the analytical setting is generally much simpler than the general equilibrium, land use-transportation models. As a first step, I introduce land and labor markets in the model setting of the environmental economics literature, and obtain the similar welfare-analytic results as commonly observed in the literature.