Economic aspects of urban development : with special reference to the conversion of land from agricultural to urban use

Abstract

This thesis sets out to explore some economic aspects of the changes in land use which are the result of cities spreading on to, and taking over, land formerly in some agricultural use. The exploration is mainly verbal, as an attempt is made to survey literature relevant to this transition process, and to clarify the vantage point from which such land use changes might be viewed by an economist. A small numerical example gives the results of a case study examination of a tract of land which has been converted from potential use in commercial agriculture to residential development.

The motivation for this exploration is a reaction to the frequently held view that every tract of first-class agricultural land lost to the spreading cities represents a 'net economic loss' to the community. By examining a number of assertions in varying degrees of agreement or disagreement with this view, it is hoped that some progress may be made towards placing the subject on a more firm economic basis. This seems necessary because whether economic analysis is performed or not, whether little or much is known about economics, those responsible for making land use decisions and their 'advisers' (both official and unofficial), will continue to conduct their discussion in terms of costs and returns.