PLANNING 3: MIDTERM PERIOD - Ancient theaters, religious festivals, city

CITY DEFINITION AND URBAN CLASSIFICATION beautification, etc. reflect cultural pride.
- Too often sacrificed in favor of temporary
CITY FUNCTIONS economic concerns.
There are several functions that a city performs. Some 7. HOUSING
of these functions are even the reasons why these - The largest and simplest function of a city.
cities or urban areas were established. Examples of
- Industrialization and modern transportation have
the functions of the city are the following:
completely changed housing patterns.
1. ECONOMIC
- A basic and continuing function. The city acts as - During the Industrial Revolution housing
a producer and marketplace. functions were built to satisfy economic
- Historically cities were located at strategic points demands.
for the exchange of goods. - Through the years, housing functions of the inner
- Some cities start as regional market centers for city have shifted to outlying areas.
the surrounding countryside.
- At present, the location of airports in city centers
has become an important economic factor. CITY CLASSIFICATION
2. DEFENSE AND PROTECTION
Cities can be classified as:
- Historic urban functions of the city, through quite
a. HIGHLY URBANIZED CITY - if it has a minimum
obsolete at present.
population of 200,000 inhabitants, as certified by
- Cities were once built to withstand sieges from
the National Statistics Office (NSO), and the
migrating tribes or frequent raids from enemies.
latest annual income of at least Php 50 million
3. WORSHIP AND GOVERNMENT
based on the 1991 constant prices, as certified
- The prime function of the city throughout history.
by the city treasurer (ex. Metro Manila cities,
- Cities were built around temples, shrines, and
Cebu, Mandaue, and Davao).
pyramids in ancient Egypt, Greece, and Rome b. INDEPENDENT COMPONENT CITY - if it is
- The medieval cathedral was the center of the city, independent of the province and its charter
as were Renaissance palaces and castles. prohibits its voters from voting for provincial
4. TRANSPORTATION elective officials. They are the independent of the
- Greatly influences the location of cities since they province. (Naga, Santiago [Isabela], Ormoc
are dependent on geography. [Leyte], Cotabato City [Maguindanao], Dagupan
- New means of transportation have enabled [Pangasinan])
people to live in much larger more spread-out c. COMPONENT CITY - if it is a city that do not
cities. meet the requirements of the 2 classifications
- Vertical transportation and new construction above in which they are geographically located.
methods and materials overcame the vertical If a component city is located within the
boundaries of two or more provinces, such city
limitations of buildings.
shall be considered a component of the province
- Although transportation has given great things to of which it used to be a municipality (ex. San
the development of the city, it has also done Fernando, Alaminos, Tarlac, Dipolog)
serious damage to the physical and social fabric.
5. EDUCATION LOCAL GOVERNMENT UNITS
- Cities have always been the seat of academies Local Government Units (LGUs) can be in the form of
and scholarship and are continuing to function. a province, city municipality, or barangay. Each of
- Due to the diversity of people, ideas, jobs, etc., these types of LGUs has their respective roles. At the
the city is seen as an educator. provincial level, it is mostly for effective governance
6. CULTURAL and developmental processes. At the city or municipal
- In ancient Greece and Rome, theater level, it is the coordination and delivery of basic,
performances and education were the vital regular, and direct services. At the barangay level, it is
functions of each city.
the primary planning and implementing unit of the b. HUC- Latest annual income of at least PHP
government. 50,000,000.00 based on 1991 constant
prices.
A Local Government Unit can be created by law, c. COMPONENT CITY- A locally generated
ordinance, or presidential proclamation (i.e., average annual income, as certified by the
depending on the type of LGU), if it meets the income, Department of Finance, of at least PHP
population, and land area requirements.
100,000,000.00 for the last two consecutive
ROLE OF VARIOUS LOCAL GOVERNMENT UNITS years based on 2000 constant prices (as
a. PROVINCE- The province, composed of a cluster amended by RA 9009).
of municipalities, or municipalities and component d. MUNICIPALITY- Average annual income, as
cities, and as a political and corporate unit of certified by the provincial treasurer, of at least
government, serves as a dynamic mechanism for PHP 2,500,000.00 for the last two
developmental processes and effective consecutive years based on the 1991
governance of local government units within its constant prices.
territorial jurisdiction. e. BARANGAY- N/A
b. HUC and CITY- The city, consisting of more 2. POPULATION– shall be determined as the total
urbanized and developed barangays, serves as a number of inhabitants within the territorial
general-purpose government for the coordination jurisdiction of the local government unit
and delivery of basic, regular, and direct services concerned.
and effective governance of the inhabitants within a. PROVINCE- 250,000
its territorial jurisdiction. b. HUC- 200,000
c. MUNICIPALITY- The municipality, consisting of a c. COMPONENT CITY- 150,000
group of barangays, serves primarily as a general- d. MUNICIPALITY- 25,000
purpose government for the coordination and e. BARANGAY- 5,000 (in NCR and HUCs),
delivery of basic, regular, and direct services and 2,000 (in other cities and municipalities)
effective governance of the inhabitants within its 3. LAND AREA– must be contiguous unless it
territorial jurisdiction. comprises two or more islands or is separated by
d. BARANGAY- As the basic political unit, the a local government unit independent of the others;
barangay serves as the primary planning and properly identified by metes and bounds with
implementing unit of government, policies, pans, technical descriptions; and sufficient to provide for
programs, projects, and activities in the such basic services and facilities to meet the
community, and as a forum wherein the collective requirements of its populace.
views of the people may be expressed, a. PROVINCE- 2,000km2
crystallized, and considered, and where disputes b. HUC- 100km2
may be amicably settled. c. COMPONENT CITY- 100km2
REQUISITES FOR THE CREATION OF LOCAL d. MUNICIPALITY- 50km2
GOVERNMENT UNITS e. BARANGAY- N/A
1. INCOME- must be sufficient, based on acceptable MANNER OF CREATION
standards, to provide for all essential government a. PROVINCE- By law
facilities and services and special functions b. HUC- By Presidential Proclamation
commensurate with the size of its population, as c. COMPONENT CITY- By law
expected of the local government unit concerned. d. MUNICIPALITY- By law
a. PROVINCE- Average annual income, as e. BARANGAY- By law or by an ordinance
certified by the Department of Finance, of not
less than PHP 20,000,000.00, based on 1991
constant prices. INCOME CLASSIFICATION OF LOCAL
GOVERNMENT UNITS
 1. PROVINCES - For example, a city with a generally flat terrain
a. FIRST- PHP 450M or more may generate a good city skyline. In comparison,
b. SECOND- PHP 360M or more but not a hilly topography may not create a good city
less than PHP 450M skyline but can generate a different and equally
c. THIRD- PHP 270M or more than but not interesting character.
less than PHP 360M - Another aspect of landform is the relationship of
the urban area with nature. Cities can be seen as
d. FOURTH- PHP 180M or more but not
being "within nature" if the core of the built-up
less than PHP 270M
area is bounded by natural elements. It can also
e. FIFTH- PHP 90M or more but not less be regarded as "cities and nature" if the design
than PHP 180M and function of the city are integrated with the
f. SIXTH- Below PHP 90M natural elements. Lastly, there can be nature
2. CITIES within cities in the form of parks incorporated into
a. FIRST- PHP 400M or more the built environment.
b. SECOND- PHP 320M or more but not 2. SHAPE- Another factor that can affect the urban
less than PHP 400M form is its shape. This can be seen through its
c. THIRD- PHP 240M or more than but not circulation networks (e.g., star, radio-centric,
less than PHP 320M linear, ring, branch, or rectilinear), the distribution
d. FOURTH- PHP 160M or more but not of developments within the urban area (i.e., sheet
less than PHP 240M or articulated sheet), or even in the relationship of
cities and regions with each other (e.g.,
e. FIFTH- PHP 80M or more but not less
constellation or satellite).
than PHP 160M
f. SIXTH- Below PHP 80M
3. MUNICIPALITIES
a. FIRST- PHP 55M or more
b. SECOND- PHP 45M or more but not less
than PHP 55M
c. THIRD- PHP 35M or more than but not
less than PHP 45M
d. FOURTH- PHP 25M or more but not less
than PHP 35M
e. FIFTH- PHP 15M or more but not less 3. SIZE AND DENSITY- The size and density of an
than PHP 25M urban area also affect its form. This can be
f. SIXTH- Below PHP 15M measured in absolute scale (i.e., definite
measurements) or relative scale (i.e., density).
- ABSOLUTE SCALE: Physical extent measured
URBAN FORMS AND TRANSFORMATION in Kilometers across, Center to outskirts, and
If the city form is clearly organized and sharply Area (in square kilometers or hectares)
PUERTO PRINCESA: 253, 982 ha
identified, then the inhabitant can infuse it with his
HULUN BUIR, CHINA: 263, 953 ha
meanings and connections. The visual world is
- RELATIVE SCALE: Density formula measured
complicated and informative. People establish their in: number of people per sq. km or ha, no. of
relationship with the environment and orient families per block, no. of houses per sq. km or ha.
themselves with their environment visually. Several Amount of building floor area per section, and
factors affect urban form. These factors are discussed automobile population, FAR, etc.
below. 4. OPEN SPACES AND LOST SPACES- The
1. LANDFORM- Depending on the topography, the presence of open spaces and lost (i.e.,
characteristics of the city or urban area may vary. underutilized) spaces can also affect urban forms.
Open spaces can be categorized into separators
 (e.g., greenbelts), centerpieces, or preservation or  Defined as the legal regulation of the use of
restoration areas. Lost spaces, on the other hand, land.
are spaces (mostly open spaces, though not  Allocated types of uses based on growth
necessarily) that could have been put to better use patterns.
by accommodating human activities but were  An application of the police power for the
underutilized or misused due to various factors. protection of the public health, welfare, and
- FUNCTION: Open spaces are made for safety (as seen through the eyes of the
recreation, preservation, and conservation of planners).
nature and ecology.  Programs and policies do not correspond
OPEN SPACES: with social relationships that give meaning to
 Provide visual amenity, health, safety, and community existence.
psychological well-being.  COLOR
 Provides flood control measures, Yellow- Built-Up Areas
preservation of water quality, and Green- Agriculture
replenishes groundwater supply. Lt Violet- Agro-Industrial
 Reduces air pollution and preserves natural Dark Green- Forest
resources. Brown- Mining/ Quarrying
 Attracts businesses, industries, and Olive Green- Grassland/ Pasture
commerce. Aqua- Swamp land/ marshes/ Water zone
 Becomes a space for urban expansion. Blue- Institutional
- TYPES Violet- Industrial
 Separators- greenways, greenbelts, Light Green- Parks and recreation
corridors: may also be connectors. Orange- Tourist
 Centerpiece- Plays role of node, focal point, Other Use Categories- Any Color
commercial anchor, recreational area, - Incentive Zoning- Allowing builders and
transportation hub, etc.: Can vary in use and developers more space if they provide certain
scale. desirable features and amenities such as plazas,
 Preservation, Restoration Area- These arcades, and other open spaces.
may be natural environment areas and/or - Cluster Zoning- Creating special zoning policies
historical and cultural sites. and regulations for medium to large-sized
- FACTORS THAT CAUSE LOST SPACE controlled developments.
 The Automobile- A large percentage of - Floor Area Ratio- The proportions between the
urban land has been devoted to the storage built area and the lot area.
and movement of these vehicles. They are - Floor Space Index (FSI)- established by dividing
dedicated to roads and parking spaces. the area of the total floor space of the buildings
 Modern Movement- Founded on abstract by the site area, including half the area of any
ideals for the design of free-standing roads adjoining it.
buildings. - Architectural Guidelines: building heights,
 Zoning and Land Use Policies- Zoning setbacks, building bulk, and architectural
legislation had the effect of separating character.
functions that were often integrated. As a 6. URBAN ECOLOGICAL PROCESSES
result, the city is subdivided into - Adaptive Reuse- converting old, usually historic
homogenous districts subdivided by traffic buildings, sections of, or entire districts to new
arteries, and areas between districts are uses other than their original purpose.
usually lost spaces in the urban fabric. - Invasion- a type of urban ecological process
 Privatization of Public Space defined as the entrance of a new population
5. URBAN DESIGN CONTROLS- This can be in the and/or facilities in an already occupied area.
form of: - Centralization- an urban ecological process in
- Land Use Planning and Zoning city land use patterning referring to an increase
in population at a certain geographic center.
 - Block-boosting- “forcing” the old population out
of the area because of social or radical
differences.
- Gentrification- improving the physical set-up
and consequently affecting the market for
previously run-down areas.

URBAN MODELS
1. CONCENTRIC ZONE THEORY- This is an urban
model proposed by Ernest Watson Burgess. This
urban model arrange uses in concentric rings with
the CBD at the the center. The zones beyond the
CBD is the transition zone, low-income housing,
middle-income housing, and the commuter zone.
It is assumed that the high-income earners are
best located in the commuter zone since they have
more means to shoulder transportation costs. The
assumption of this model is that when the CBD - High rent sectors often extend along fashionable
grows and eat up the transition zone, the low- boulevards.
income earner are equipped by then to transfer to - High rent sectors usually buffered by middle rent
the middle-income housing. sectors.
- High rent sectors separated from low rent by
physical barriers.
HIGH RENT AREAS TEND TO:
- …grow from a given point along lines of
transportation.
- …grow towards the high ground free from
flooding.
- …grow towards the open country.
- …grow towards the homes of community
leaders.
- …pull office buildings, banks, and stores along
with them.
- …develop along the fastest lines of
communication.
- …continue to grow in the same direction for a
2. SECTOR MODEL- This is an urban model
proposed by Homer Hoyt. This model arranges long period.
uses in sectors with the CBD at the center. This is 3. MULTIPLE NUCLEI MODEL- This is an urban
based on the assumption that the different uses do model proposed by Chauncey Harris and Edward
not grow at the same rate. The arrangement and Ullman. Unlike the previous models, this urban
growth of the sectors are aligned with model does not revolve around a single core but
transportation lines. It is consistent with the at several nodes and focal points. The original
observation that most cities grow in the direction CBD is the nucleus of the developments
of the higher income. characterized by the manufacturing sector, low-
income housing, and partially by the middle-
income housing. Aside from this, there is an
outlying CBD which is the nucleus of the high-
income and middle-income housing.
 FUNDAMENTALS THEORY OF PLANNING
LOCATION THEORY
- Location theory is concerned with the geographic
location of economic activities; it addresses the
questions of what economic activities are located
- 4 FACTORS THAT GIVE RISE TO SEPARATE where and why.
NUCLEI a. It rests primarily on the assumption that
 certain activities require special activities agents act in their own self-interest. Thus,
(CBD = accessibility; warehousing/docks = firms choose locations that maximize their
waterfront; low density housing = land) profits and individuals choose locations that
maximize their utility.
 some activities group together because
b. Various factors which affect location are
they profit from cohesion (financial/office considered such as localized materials and
district; medical district; manufacturing amenities, but most weight is placed on
districts) transport costs.
 other activities are detrimental to each c. Early location theory was concerned with
other (heavy industry and high rent agricultural land use, as modeled by von
residential; meat packing plants and funeral Thünnen and with industrial location theory
homes) by Alfred Weber. Modern location theory has
 certain activities cannot afford high rents been concerned with the real individual,
(forced together in the low rent areas) rather than with rational economic man
reflecting the influence of behavioral
4. URBAN REALMS- This is an urban model
geography.
proposed by James Vance. This urban model
discusses about self-sufficient sectors. This urban ECONOMIC RENT by DAVID RICARDO
model best represents NCR. Independent urban - This is an idea discussed by David Ricardo.
realms brought by the impact of the automobile. Economic Rent, essentially, is the profit
generated by the land due to its advantageous
characteristics. For example, 2 land having the
same size will have different economic rents if the
 soil type of one land can generate more produce distance from the market. • Coined the term
than the other land. Location rent (land value), which is economic rent
- David Ricardo (19 April 1772 – 11 September minus the costs associated with transporting
1823) was an English political economist and products to market
was one of the most influential of the classical - L = Y (P − C) – YDF
economists. His most famous work is his wherein…
Principles of Political Economy and Taxation L: Locational rent (in DM/km2)
wherein he discussed his theories on labor value, Y: Yield (in t / km2)
RENT, and comparative advantage. P: Market price of the crop (in DM / t)
- Ricardo is known for his differential rent theory C: Production cost of the crop (in DM / t)
based on fertility, but he also gave "situation" as D: Distance from the market (in km)
a possible cause of rent. F: Transport cost (in DM / t / km)
- “If all land had the same properties, if it were - Based on this equation he theorized that
unlimited in quantity and uniform in quality, no “Producers (farmers) aim to maximize location
charges could be made for its use, unless where rent by minimizing the transportation costs of
it possessed peculiar advantages of the getting goods to market”.
situation”. - Model of Agricultural Land
- Economic rent – the difference between the Von Thünen gave a predictive model of rural
produce obtained by the employment of two development around an idealized isolated urban
equal quantities of capital and labor – the center, imposing several simplifications in an
payment over and above what is necessary to attempt to focus on some of the fundamental
stay in business. processes at work in settlement patterns and
rural economic activity.
LOCATION RENT by JOHANN HEINRICH VON - Simplified assumptions:
THUNNEN • The city is located centrally within an "Isolated
- The location rent of Johann Heinrich von State."
Thunnen includes in the factors to consider the • The Isolated State is surrounded by wilderness
location of the land. According to him, even if • The land is completely flat and has no rivers or
both lands have the same overall characteristics mountains
(i.e., will yield the same economic rent), the one • Soil quality and climate are consistent
located closer to the market will have higher • Farmers in the Isolated State transport their own
location rent because of its advantageous goods to market via oxcart, across land, directly
location. Those farther from the market will have to the central city. There are no roads
the disadvantage of higher transportation cost. • Farmers behave rationally to maximize profits.
Because of his ideas von Thunnen has been
regarded as the Father of Location Theorists.
- Johann Heinrich von Thünen (24 June 1783 - 22
September 1850) was a prominent nineteenth
century German economist and landowner, who
in the first volume of his treatise, The Isolated
State (1826), developed the first serious
treatment of spatial economics, connecting it with
the theory of rent first developed by David
Ricardo. That is, he took the Ricardian notion of
rent one step further by introducing distance and
space. He is sometimes referred to as the father
of location theorists.
- Postulates that transport cost depends on the
distance from the market and different kinds of
products. The gain from farming per unit area
(locational rent) decreases with increasing
LEAST COST LOCATION by ALFRED WEBER LEAST COST LOCATION: WEIGHT-LOSING CASE
- This is a variation of the location rent theory as
applied to the industrial sector, discussed by
Alfred Weber. According to Weber, heavier items
will incur higher transportation costs. Because of
this, manufacturing sectors need to consider
which is heavier, the raw material that they are
using or their final manufactured product. To
lower transportation costs, the manufacturing
sector has to be located in such a way that the
distance of transporting whichever is heavier
(i.e., raw material or finished product) should be
the shortest. He illustrated this in his discussion -
of the weight-losing and weight-gaining case. - Fig. 1 Situation in which the processing plant is
- Alfred Weber (30 July 1868 – 2 May 1958) was a located somewhere between the source and the
German economist, sociologist, and theoretician market. The increase in transport cost to the left
of culture whose work was influential in the of the processing plant is the cost of transporting
development of modern economic geography. the raw material from its source. The rise in the
He is the author of Theory of the Location of transportation cost to the right of the processing
Industries, studied industrial location decisions, plant is the cost of transporting the final product.
and built on von Thunen’s theory by considering Note the line on the left of the processing plant
not only the costs of getting goods to market, but has a steeper slope than the one on the right
also the costs of transporting material inputs to because the raw material is heavier than the
the manufacturing plant. finished good.
- Considered Transportation cost as the direct
function of the weight of the item and distance
shipped.
- He asserted that “all else being equal,
manufacturers will locate their plants either at the
market or the source of the input depending on
whether or not the final product gains weight or
loses weight in the manufacturing process”.
- Weber formulated a theory of industrial location
in which an industry is located where the
transportation costs of raw materials and final
product is at a minimum (least-cost location). He -
- Fig. 2 Situation if the processing plant is moved
gave two special cases of finding the least-cost closer to the source of raw material. Note that the
location as described below. His model allowed transport cost of the final product delivered to the
for three types of locations: (1) raw materials market is lower than in the previous location.
locations, (2) a production site for final goods,
and (3) a consumption center.

-
- The optimal location of the processing plant is at distance to the CBD of the city as a solution of an
source of the raw material, as shown in Fig. 3. economic equilibrium for the market for space.
- Transportation Cost - for the product delivered to - He postulated that there is an inverse relationship
the market will be lowest of all if the processing between transportation cost and rent such that if
plant is located at the source of the raw material. transportation cost is high, then the rent is low.
- He developed the "Bid-Price Curve": A set of
combinations of land prices and distances
LEAST COST LOCATION: WEIGHT-GAINING CASE
among which the individual is indifferent (i.e.
satisfied with the combination of land price as
well as the distance at some point).

- The weight-gaining case is illustrated in Figs. 4,

5 and 6. The optimal location of the processing
plant in this case is at the market.
- Transportation Cost - the product delivered to the
market will be lowest of all if the processing plant
is located at the market. Weber established that
firms producing goods less bulky than the raw
materials used in their production would settle LOCATIONAL DETERMINANTS OF COMMERCIAL
near the raw-material source. Firms producing AND INDUSTRIAL USE
heavier goods would settle near their market. The 1. COST
firm minimizes the weight it must transport and,  price and rent of land fall with increased distance
thus, its transport costs. from the CBD
 wages are higher in the center
 local demand for labor being greater than local
BID-PRICE CURVE supply
- William Alonso applied the discussion of location  commuting costs need to be offset by higher
theory to urban land use and came up with the remuneration. (transport cost more of a reflection
bid-price curve. According to him locations of accessibility than distance)
closest to the urban area have the highest price  locations close to junctions, nodes and terminals
of land but the lowest transportation cost. are particularly favored maximizing proximity to
Likewise, locations farthest from the urban area suppliers and markets
have the lowest price of land but the highest  decentralized shopping centers are being
transportation cost. According to him, each land developed following road improvement and
use (e.g., commercial, industrial, residential) increased car ownership
have their own combinations of prices and costs  modern manufacturing industry relies
that they are comfortable with and whichever increasingly on heavy road vehicles for long
sector has the highest bid for that location will be distance transportation and incurs lower
the primary user of that location. This can be transport costs on the fringes of cities than at
seen in the patterns of usage that we see in the more central locations.
urban area. 2. REVENUE
- Extended the von Thünnen model to urban land  Retailing revenue is determined by size of the
uses. shopping catchment area or hinterland, not just
- His model gives land use, rent, intensity of land in population but in purchasing power.
use, population, and employment as a function of
 Distribution of the day-time population and points • other possible influences: changes in population,
of maximum transit (where people cluster technology and transportation, pressures from
together) are also important. redeveloped central areas and local & central
 In the case of offices, the spatial distribution, government policy.
number and size of client establishments 4. LOCATION
determine revenue.  A factor which, as propagated by the adage
 Revenue is thus greatest within the CBD & so are “location, location, location” is considered to be
the aggregate costs. the foremost determinant in the catalyzing of the
• as distance from the center increases, revenue decision to purchase.
falls and aggregate costs (after falling initially)  True in the practice of conventional suburban
rises. development.
• this is due to the upward pull of transport costs,  Downside being that a preexistence of
which are no longer offset sufficiently by excellence in location is invariably associated
economies in the use of land and labor. with high cost of land acquisition.
• only within a fairly short distance from the CBD  Created by proximity to a desirable factor such as
are commercial users able to realize high transportation, a waterfront, a slope, a long vista,
profitability. a pleasant climate, a popular resort, or a
3. PROFITABILITY desirable community.
 To maximize profits, firms need to locate where  Only method to economically achieve the value
they can benefit from both the greatest revenue added by location is to create it on inexpensive
and from the lowest costs land through PUD.
• specialized functions and activities serving the
urban market as a whole will locate centrally.
• firms requiring large sites and those attempting SAMPLE COMPUTATION FOR LOCATION THEORY
to reduce costs of overconcentration will be QUESTIONS
attracted to the suburbs. 1. What is the yield of each lot in bushels of corn?
• firms locating close together to benefit from
2. Which lot will give the highest Economic Rent?
complementary will incur lower costs because of
external economies and enjoy higher revenue 3. Which lot will give the highest Location Rent?
due to joint demand. 4. Provide a discussion to interpret the results of the
 Since there is a high degree of inertia, most firms computation
find it difficult to adjust their locations to the GIVEN
optimum.
 A satisfactory rather than ideal location moreover • LOT 1: 10,000 sqm; Clay Loam; 7km from market
is established by zoning and land use controls. • LOT 2: 8,500 sqm; Sandy Loam; 5km from market
A mixture of interacting influences usually explains • LOT 3: 4,500 sqm; Loam; 3.5km from market
each locational decision: PRODUCTION CAPACITY OF SOIL
• as price mechanism largely decides the profitability - Clay Loam = 15 bushels per 100 sqm
or utility of goods and services, it subsequently - Sandy Loam = 14 bushels per 100 sqm
determines the location of activity and the spatial
- Loam = 18 bushels per 100 sqm
structure of the urban area supplying these goods and
services • Production cost of corn: Php 175 per bushel
• high levels of accessibility within the CBD are • Market price of corn: Php 450 per bushel
reflected in low transport cost attracting greatest • Transportation cost: Php 25 per km
demand for commercial sites SOLUTION
• conversely, low over-all accessibility and high 1. What is the yield of each lot in bushels of corn?
transport cost outside urban areas will attract a much
YieldLot1 = (10,000 sqm ÷ 100 sqm)*15 bushels =
lower level of demand.
1,500 bushels
YieldLot2 = (8,500 sqm ÷ 100 sqm)*14 bushels = 1,190 - Settlements simply function as ‘central places’
bushels providing services to surrounding areas
YieldLot3 = (4,500 sqm ÷ 100 sqm)*18 bushels = 810 - extends the idea to the case where there is a
bushels hierarchy of cities as well as a distinction
between urban and rural areas
2. Which lot will give the highest Economic Rent?
- based on the idea that different types of firms
ERLot1 = 1,500 bushels*(Php 450/bushel – Php have different market areas and that cities are
175/bushel) = Php 412,500 composed of these firms
ERLot2 = 1,190 bushels*(Php 450/bushel – Php A market area is the area over which a firm can
175/bushel) = Php 327,250 underprice its competitors
ERLot3 = 810 bushels*(Php 450/bushel – Php Size depends on the relative production costs of
175/bushel) = Php 222,750 firms, the cost of transportation, and the level of
Lot 1 had the highest Economic Rent at Php demand
412,500 - A Central Place is a settlement that provides one
or more services for the population living around
3. Which lot will give the highest Location Rent? it.
LRLot1 = Php 412,500 – (1,500 bushels * (Php 25/km - Simple basic services, i.e. food, and household
* 7km)) items (things that replenish frequently) are said
= Php 412,500 – Php 262,500 to be low order
= Php 150,000 - Specialized services (e.g. computers,
universities) are said to be of high order.
LRLot2 = Php 327,250 – (1,190 bushels * (Php 25/km
- Having a high order service implies there are low
* 5km))
order services around it, but not vice versa.
= Php 327,250 – Php 148,750 - Settlements which provide low order services are
= Php 178,500 said to be low order settlements. Settlements that
LRLot3 = Php 222,750 – (810 bushels * (Php 25/km * provide high order services are said to be high
3.5km)) order settlements.
- The minimum population size required to
= Php 222,750 – Php 70,875
profitably maintain a service is the threshold
= Php 151,875 population.
Lot 2 had the highest Location Rent at Php 178,500 - FACTORS AFFECTING A FALL IN THE
4. Provide a discussion to interpret the results of the THRESHOLD POPULATION
computation 1. A decrease in population
2. Change in tastes
Because Lot 1 had the largest lot size (and good soil 3. Introduction of substitutes
productivity), it’s understandable that it will have the - The theory consists of 2 basic concepts: 1.
highest yield and economic rent. However, due to its threshold--the minimum market needed to bring
distance from the market and the resultant a firm or city selling goods and services into
transportation expense, Lot 2 had a higher Location existence and to keep it in business 2. range--the
Rent than Lot 1. Even Lot 3, whose Economic Rent is average maximum distance people will travel to
approximately half of Lot 1 had a slightly higher purchase goods and services.
Location Rent than Lot 1 because of its proximity to the
market.

CENTRAL PLACE THEORY by WALTER

CHRISTALLER
- Analyzes the size distribution and firm
composition of cities
- A geographical model (theory) that seeks to
explain the number, size and location of human -
settlements in an urban system
 diffusion of growth and spillover effects into the
surrounding hinterland.
- Growth poles were a popular regional
development strategy in the 1960s and early
1970s, with governments investing in centers
that were identified as growth poles or growth
centers, in a belief that this would ultimately
reduce regional disparities in employment and
incomes, facilitate decentralization, or support
rapid industrialization.
- CONCLUSIONS
• The larger the settlements, the fewer their - Attempts by governments to pick “winners and
number losers” and to identify and invest in growth poles
• the larger a settlement, the farther away a have a very poor record of success.
similar size settlement is Consequently, this approach to regional
• The Range increases as the population development has been discredited and generally
increases abandoned throughout the world.
• The larger the settlement, the higher the order - Growth pole theory, as originally formulated,
of its services. Deviations to this rule are: assumes that growth does not appear
o Tourist resorts that have a small population everywhere at the same time, but it manifests
but large number of functions. itself in “points” or “poles” of growth.
o Dormitory towns that have a large - It was postulated that a growth pole is formed
population but a small number of functions when an industry, through the flow of goods and
incomes which it is able to generate, stimulates
the development and growth of other industries
GROWTH POLE THEORY by FRANCOIS PERROUX related to it (technical polarization); or determines
- The growth pole concept originated from British the prosperity of the tertiary sector by means of
Economist, Sir William Petty (1623-1687), who the incomes it generates (income polarization); or
was fascinated by the high growth in London stimulates an increase of the regional economy
during the 17th century and conjectured that by causing a progressive concentration of new
strong urban economies are the backbone and activities (psychological and geographical
motor of the wealth of nations. polarization).
- Growth Poles sometimes referred to as growth - Growth pole concept was originally conceived
centers. within “economic space”, but later transposed
- French Economist, Francois Perroux, is credited into “geographical space”.
with formalizing and elaborating on the concept - By conceptualizing growth pole in spatial terms,
in 1949. He is then called as the Father of Growth economists sought for a link between growth pole
Pole Theory. theory and urban accumulation and
concentration. The assumption was that cities –
- The Geography Dictionary (2004) defines growth
poles as follows: with their accumulation and concentration of
“A point of economic growth. Growth poles are population and capital resources (agglomeration
usually urban locations, benefiting from economies) - could become growth poles. That
agglomeration economies, and should interact being the case, growth poles are treated as
with surrounding areas, spreading prosperity centers from which innovations and progress are
from the core to the periphery”. diffused.
- The core idea of GP is that economic
development, or growth, is not uniform across an
entire region, but instead takes place around a
specific pole. The pole is a concentration of
productive activity and propagates growth by the