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    Location Theory

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    Beverly luthe Mortera
    1. Location theory examines how the locations of human activities are influenced by factors like transportation costs and revenue potential. Activities tend to cluster near centers, like cities, to take advantage of larger markets but locate farther out to reduce costs. 2. Models like von Thunen's propose that land uses change systematically with distance from markets, with high-value crops near cities and extensive farming farther out due to transportation costs. Alonso expanded on this, suggesting rent gradients influence land use patterns. 3. For businesses, optimal locations balance high revenue in centers against increasing costs from congestion; they also consider accessibility, agglomeration benefits, and responses to government policy and infrastructure changes. Location is a primary consideration for real

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    Location Theory

    Uploaded by

    Beverly luthe Mortera
    79 views27 pages
    1. Location theory examines how the locations of human activities are influenced by factors like transportation costs and revenue potential. Activities tend to cluster near centers, like cities, to take advantage of larger markets but locate farther out to reduce costs. 2. Models like von Thunen's propose that land uses change systematically with distance from markets, with high-value crops near cities and extensive farming farther out due to transportation costs. Alonso expanded on this, suggesting rent gradients influence land use patterns. 3. For businesses, optimal locations balance high revenue in centers against increasing costs from congestion; they also consider accessibility, agglomeration benefits, and responses to government policy and infrastructure changes. Location is a primary consideration for real

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    1. Location theory examines how the locations of human activities are influenced by factors like transportation costs and revenue potential. Activities tend to cluster near centers, like cities, to take advantage of larger markets but locate farther out to reduce costs. 2. Models like von Thunen's propose that land uses change systematically with distance from markets, with high-value crops near cities and extensive farming farther out due to transportation costs. Alonso expanded on this, suggesting rent gradients influence land use patterns. 3. For businesses, optimal locations balance high revenue in centers against increasing costs from congestion; they also consider accessibility, agglomeration benefits, and responses to government policy and infrastructure changes. Location is a primary consideration for real

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    79 views27 pages

    Location Theory

    Uploaded by

    Beverly luthe Mortera
    1. Location theory examines how the locations of human activities are influenced by factors like transportation costs and revenue potential. Activities tend to cluster near centers, like cities, to take advantage of larger markets but locate farther out to reduce costs. 2. Models like von Thunen's propose that land uses change systematically with distance from markets, with high-value crops near cities and extensive farming farther out due to transportation costs. Alonso expanded on this, suggesting rent gradients influence land use patterns. 3. For businesses, optimal locations balance high revenue in centers against increasing costs from congestion; they also consider accessibility, agglomeration benefits, and responses to government policy and infrastructure changes. Location is a primary consideration for real

    Copyright:

    © All Rights Reserved
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    of 27

    LOCATION THEORY

    Introduction:
    1. Dissatisfaction of individuals and groups with
    regards to their relationship with the
    environment.
    v changes involved could be:
    -changing the nature of the activity.
    -the space in which it is carried out
    -kinds of communications made with
    activities at other locations
    -channels which carry or transmit them
    2.Modifying action can have repercussions on
    the world around us be it great or less:
    - ex. One man decides to travel by train
    thus leaving his car. This action does not
    affect people but if everyone decides to
    follow suit its effects would be
    noticeable. It would involve more people
    like road controllers, rail operators, etc..
    - ex. Industries shift of operating time, location
    and size of enterprise, type of plan used,
    business they do with suppliers, etc.
    3. There is a definite need for the development
    of communities in the country.
    -Communities which we could call livable
    in all aspects of the word.
    -A community that has all the facilities
    which will allow its inhabitants to live their day
    to day lives with respect, befitting that
    of a human being.
    Physical development may come in various
    forms:
    • In the form of available utilities, ex. water,
    electricity, gas, phone.
    • Road systems, i.e. street patterns, its
    subsequent paving and sewer system.
    • Various support systems, ex. Barangay halls,
    sport centers, parish churches, etc.
    • Areas of livelihood be it at home or
    community offices.
    • Improvement of the household itself.
    • Planning seeks to…
    a) regulate or control the activity of individual
    and groups in such a way as to minimize the
    bad effects which may arise.
    b) promote better performance of the physical
    environment in accordance with a set of broad
    aims and more specific objectives set out in a
    plan.
    Johann Heinrich von Thunen (1826)
    • postulated that around a central town
    -rural land of constant fertility assumed
    different forms
    (the type of land use varies with distance away
    from the market)
    - land use diminishing intensively in reverse
    relationship to increased distance from the
    town.
    (The intensity of production declines with
    distance away from the market)
    • land in greatest demand would be as near as
    possible to the market on account of low
    transport costs.
    - the highest rent would be gained for this
    advantage and the highest value output per
    hectare would accrue.
    • outer belt would have little demand for land
    because of transport costs.
    - rent would be low and the value of extensive
    production would be correspondingly low.
    Modifications…
    • Overall use pattern might be modified by the
    existence of a navigable river.
    …cost of river transport are low especially for
    bulky commodities compared to fairly high
    transport cost overland.
    …river would have the effect of extending the
    different land uses almost parallel along its
    course.
    • Further modification might occur if a small city
    with its own production zones is located
    within the land use pattern of the main
    settlements.
    • Von Thunen model assumed unlikely
    conditions such as production taking place
    around an isolated market place and soil being
    of constant fertility.
    • However, it established a distance-cost
    relationship which recently became the basis
    of urban location theory.
    • As price mechanism largely decides the
    profitability or utility of goods and services, it
    subsequently determines the location of
    activity and the spatial structure of the urban
    area supplying these goods and services.
    William Alonso…

    • Rents diminish outward from the center of a


    city to offset both lower revenue and higher
    operating costs and not least transport costs.
    • …a rent gradient would compensate for falling
    revenue and higher operating costs.
    • …different land uses would have different rent
    gradients, the use with the highest gradient
    prevailing.
    • use “a” prevails up to a distance of 2kms from
    the CBD, from 2 to 5kms use “b” is dominant,
    and beyond 5kms use “c” prevails.
    • A change of use could be expected to take
    place through the price mechanism when one
    gradient falls below another.
    • Alonso model did not specify the type of land
    use associated with each bid-gradient.
    • Assumed that the urban area has a single
    nucleus and that the market for land is perfect.
    Locational determinants of commercial and
    industrial use
    • A. COST
    - price and rent of land fall with increased
    distance from the CBD.
    - wages are higher in the center
    …local demand for labor being greater than
    local supply.
    …commuting costs need to be offset by higher
    remuneration. (transport cost more of a
    reflection of accessibility than distance).
    • locations close to junctions, nodes and
    terminals are particularly favored maximizing
    proximity to suppliers and markets.
    • Decentralized shopping centers are being
    developed following road improvement and
    increased car ownership.
    • Modern manufacturing industry relies
    increasingly on heavy road vehicles for long
    distance transportation and incurs lower
    transport costs on the fringes of cities than at
    more central locations.
    • B. REVENUE
    - Retailing revenue is determined by the size
    of the shopping catchment area or hinterland,
    not just in terms of population but in terms of
    purchasing power.
    - Distribution of the day-time population and
    points of maximum transit (where people
    cluster together) are also important.
    - In the case of offices, the spatial distribution,
    number and size of client establishments
    determine revenue.
    • Revenue is thus greatest within the CBD and
    so are the aggregate costs.
    …as distance from the center increases,
    revenue falls and aggregate costs (after falling
    initially) rises.
    …this is due to the upward pull of transport
    costs, which are no longer offset sufficiently
    by economies in the use of land and labor.
    …only within a fairly short distance from the
    CBD are commercial users able to realize high
    profitability.
    C. PROFITABILITY
    - To maximize profits, firms need to locate
    where they can benefit from both the greatest
    revenue and from the lowest costs.
    - Specialized functions and activities serving
    the urban market as a whole will locate
    centrally.
    - Firms requiring large sites and those
    attempting to reduce costs of over-
    concentration will be attracted to the suburbs.
    • Firms locating close together to benefit from
    complementary will incur lower costs because
    of external economies and enjoy higher
    revenue due to joint demand.
    …since there is a high degree of inertia, most
    firms find it difficult to adjust their locations to
    the optimum.
    …a satisfactory rather than ideal location
    moreover is established by zoning and land
    use controls.
    • A mixture of interacting influences usually
    explain each locational decision.
    .....as price mechanism largely decides the
    profitability or utility of goods and services, it
    subsequently determines the location of
    activity and the spatial structure of the urban
    area supplying these goods and services.
    .....high levels of accessibility within the CBD
    are reflected in low transport cost attracting
    greatest demand for commercial sites.
    • .....conversely, low over-all accessibility and
    high transport cost outside urban areas will
    attract a much lower level of demand.
    .....other possible influences: changes in
    population, technology and transportation,
    pressures from redeveloped central areas and
    local and central government policy.
    D. LOCATION
    • A factor which, as propagated by the adage
    “location, location, location” is considered to
    be the foremost determinant in the catalyzing
    of the decision to purchase.
    • True in the practice of conventional suburban
    development.
    • Downside being that a preexistence of
    excellence in location is invariably associated
    with high cost of land acquisition
    • Created by proximity to a desirable factor such
    as transportation, a waterfront, a slope, a long
    vista, a pleasant climate, a popular resort, or a
    desirable community.
    • Only method to economically achieve the
    value added by location is to create it on
    inexpensive land through Planned
    Neighborhood Development.
    References:

    • http://pupclass.blogspot.com/2008/06/modul
    e-3-planning-3-location-theory.html

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