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EXTERNALITIES OF URBAN CONCENTRATION
Urban area is an area is which a majority of the people are not directly dependent on natural resource-based occupations. An urban are can be defined by population concentration. For example, in Japan an urban area has a minimum population concentration of one thousand persons and not fewer than four hundreds persons per square kilometer. All territory outside urban areas is classified as rural. Urban population includes all population living in the urban cores, secondary urban cores and urban fringes of census metropolitan areas (CMAs) and census agglomerations (CASs) as well as the population living in urban areas outside census metropolitan areas and census agglomerations. However, some urban areas may contain commercial and industrial districts, railway yards, airports, parks and other un inhabited areas that result in blocks with population densities of less than four hundreds persons per squire kilometer.
In general, the impact of the total population within urban areas is minor, but the impact on specific urban land areas could be significant.(Addel 1988)
As people concentrate in urban centers they are some externalities which affect them. These externalities can be positive or negative
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Preview of the essay: EXTERNALITIES OF URBAN CONCENTRATION
EXTERNALITIES OF URBAN CONCENTRATION Urban centers can be defined as a centre where very many people concentrate in one area as they try to secure jobs in order to improve their lives Once an urban area attains a population of ten thousands persons, it is eligible to become the urban core of a census agglomeration. Upon attaining a population of at least one hundred thousands persons, it is eligible to become the urban core of a census metropolitan area. When an urban area with population of at least fifty thousands persons is also the urban core of a census agglomeration, the census agglomeration is eligible for the census tract program. The concentration of people in urban areas has some advantages\positive externalities and disadvantages\negative externalities. . WHAT IS EXTERNALITIES? Externalities are positive or negative impacts which transactions have for people who are not parties to the transaction. In other words an externality is something that does not ...
... that a company has to pay a certain amount for the pollution they produce. While this system would solve the externalities problem, it would make it difficult for the government to set an absolute pollution limits if it felt the need to do so.
Tradable emission permit allow the government to give companies licenses to pollute at a certain level. Companies ca buy, sell and trade their permits on the market. Therefore it is in the interest of the companies to pollute as little as possible. If they pollute at a level higher than their permits allow, they have to buy permits from other companies, thus increasing the production cost of that particular company. If they pollute less, then they are allowed to sell their permit, this, decreases the production cost to that particular company. (Yinger 1992)
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Urban areas are at the forefront of industrialization. When progress marks, they are at the front line. Urban areas are the first penetration line of progress and at the same time environmental destruction.