In economics, land is defined as a naturally occurring resource whose quantity cannot be added but only developed. Economically, land can be used in agribusiness, real estate, as a source of capital etc. land principles have existed for a long time as land is a delicate resource that has to be constantly addressed. This topic aims to critically discuss those crucial economic land principles.
The principle of supply and demand
This principle is explained by supply, demand and price of land. If the demand of land increases, the price shoots up. Conversely, if demand decreases then the price decreases. at a specific level of interest, if the land supply becomes more than the demand, definitely the price will decrease. If the demand decreases, then the price will increase.
Principle of Anticipation
This principle of anticipation states the current value is the rule on which property relies on. The value of property relies on the anticipated income or utility that will accrue to the land owner in the near future. Value on land is only created by perception of the expectation of the returns the land will give in the future. The buyer will anticipate more dollars from the current investments.
The principle of Balance
The principle of balance relates to location of land. The principles states that value is only achieved and maintained when all elements in consideration are in the correct proportions. When land is in optimum use like residential, available shopping malls and government amenities in nearby, the demand will be high hence high purchase and rent prices. Land that lack convenient access to those amenities and recreational services, the price will and demand will be low. (Ely, 60)
The principle of substitution
Substitution is whereby there are available alternatives that would give the same satisfaction as compared to specific land. It assists to keep the land availability and prices in balance.
The principle of competition
This principle states that profits stimulate competition. High profitability from a certain land will result in high demand for it hence the competition.
Importance of transport cost
Transport cost is an expense incurred while on travel. The amount of transport is always s determined by the distance travelled, type of carrier the traveler used and the method of travel. If a passenger travels by plane, then he or she would have to pay more than travelling by a coach or train. Freight services are offered by different companies. Their charges for transport of cargo depends the quantity and the value of the cargo. High-value cargo is always costly to transport since its risky. Transport can be by sea, land or air.
Impact of technology on land use patterns
Land use is the management and modification of the natural resource for built environment such as farming and settlements. Technology revolution continues to spread like wildfire across states. It has impacted land use in both urban and rural land. Urban planning has been revolutionized. Land uses such as recreational, transport, agricultural, residential and commercial. This topic discusses technologys impacts on each of the land use.
Technology has impacted land use patterns on agriculture. Agricultural activities in the past have been manually done limiting the quantity of field under farming. This is due to lack of enough man power and time. However, mechanization has solved the problem. Large tracts of land are now under use. Farm machineries are being used in cultivating crops. Use of modern technology on land has assisted in land reclamation process. This has helped in increasing size of land under agriculture.
Technology has impacted land use patterns in transport sectors. In the last century, transport had been limited to roads and railways. With technology, this has revolutionized. Land has been used on airports and subways. Fast speed trains are now being used to transport goods and passengers. With airports, more planes are now flying in skies. Operations are now done more effectively.
Technology has impacted land use patterns on settlements. With development of technology, urban planning on settlements and commercial buildings has been improved. Land usage therefore has been used more effectively. Skyscrapers have been built to hold more offices and homes for people to live. Transport networks in urban settlement have been automated to help residents commute more easily. Settlements have planned to look attractive. Settlements as land use have been impacted by technology.
Use of land for recreational purposes has been impacted by technology. Recreational activities on land include; parks, museums, monuments in cities and sports grounds. Large sports grounds are now have been built to accumulate more fans. They are fitted with modern tech-savvy equipments to be recorded and for safety purposes. Parks and museums have been installed with modern equipments to protect wildlife. Monuments are now designed with technology to look more attractive. Hence, technology has changed use of land for recreational purposes.
Open space impacts on economic growth
Urban open space, in land use is a open area for parks, open playing fields and leisure grounds. They are referred to as green spaces. Many cities around the world have more than just buildings that are green parks. As cities grow, they grow and find value for green spaces as they have numerous advantages to economic growth. Successful urban planners advocate for green spaces to enhance economic growth in cities.
Trees and parks offer environmental solutions that include storm management thus reducing operation cost. Urban parks offer natural ways to solve water runoff and air pollution. These pollutions need funding to regulate them. Research shows major cities have reduced the cost in maintaining storms that can destroy buildings and structures tress act as wind breaks. Thus, open spaces is not a hindrance to economic growth.
An open space like open playing fields provides revenues for the city council. Open fields include golf courses and soccer fields. Sport tourism can be tapped therefore increasing revenue
for the government. Cities with national parks like Nairobi are earning millions from tourism. Green spaces create an attractive city hence wooing investors to invest in the city. Investments may include real estates and resorts. Green buildings attract various organizations to establish their offices and branches in those cities. This creates more jobs for city residents. Hence, open spaces are not a hindrance to economic growth.
How Cities and suburbs can benefit from each other
Cities and suburbs in the past have developed independently. A positive correlation between a suburb and city for growth could be massive. However the correlation between cities and suburbs does not indicate high growth by one caused high growth of the other city. This topic discusses the benefits of correlation between a city and a suburb.
The importance of one correlation is to boost growth between the two. They can assist one another in solving pollution since a single government will become ineffective. A single municipality is not effective under a large geographic area. Local area government can assist the municipality in maintenance of gardens, short grass and street lights.
Cities and suburbs can benefit from each other by reporting crimes within the suburbs to minimize crimes. Issues that go unreported like racism can be reported to local authorities. The metropolitan can also devolve its services to the local governments in the suburbs. Such services include garbage collection, business registration in the city etc.
What the government can do to assist the economy of metropolitan areas
Spur job creation in metropolitans
The government should strive to reduce the gap of the unemployed. The authorities should negotiate for jobs for all for all fields. The authorities should invest on infrastructure and large projects. This will assist in job creation for thousands.
Enhance regional economic competitiveness
Competition acts to promote innovation hence decline in percentage of the unemployed. The government should map out new growth zones to deliver expansion of tax revenue locations. The authorities should invest in innovation, science parks and other activities that promote innovative ideas.
Modernize unit mass transit
The government in order to spur economic growth and to allow for future economic growth it should invest billions in transport sector. Pipeline, trains and airports should be increased in metropolitan areas. It should also emphasize on preserving the existing infrastructure such as rail, gas stations, train stations etc.
Ely, Richard T. "Land economics." (1940).
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