IBGeographySLRevision Notes10. Urban Environments10.1 The Variety of Urban Environments10.1.2 Pattern of Urban Economic Activities

Pattern of Urban Economic Activities (SL IB Geography)

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Physical Factors Affecting Urban Economic Activities

  • Urban activities can be categorised into three main groups: 
    • Retail: shops and markets
    • Commercial: finance, technology and business
    • Industrial: manufacturing and production
  • Industrial areas require large areas of flat land, which are not at risk from hazards
  • Retail and commercial areas require smaller areas of land. which are not at risk from hazards
  • Urban activities are affected by:
    • Physical factors
    • Land values
    • Proximity to the CBD
    • Planning

Physical factors affecting urban economic activities

  • The topography of an area, including the height of the land, areas of water, etc. impacts whether an area is suitable for economic activities
  • Hazards such as flooding and landslides can lead to the damage or destruction of:
    • Infrastructure 
    • Industrial/business buildings
  • The existence of hazards impacts which areas are suited to economic activities 
  • Climate is also a consideration
    • Heavy rainfall can lead to flooding and landslides which would make an area unsuitable for economic activities

Land Values & Urban Economic Activities

Peak land value

  • Any land that has 'purpose' will be valuable and cost more to buy or rent
    • Usually, retail shops can make money and seek prime positions
  • Therefore, land uses of similar activities will come together, creating 'peaks' and 'troughs' of land values across the urban landscape
  • There are two points to consider:
    • The value of the land:
      • Varies across the urban areas
      • Usually decreases from the centre, outwards
      • Higher land prices are also found along main roads, urban hubs and around ring roads
    • The location of the land:
      • Is important to value
      • The closer to key functions, the higher the value
      • Accessibility and desirability increase land value

urban-land-value-distribution-across-a-city-1 

Peak Land Value

Bid-rent theory

  • Also known as 'distance decay theory', the price and demand for land change as the distance from the CBD increases
  • Different land uses will compete for desirable plots to maximise their profits
  • Accessibility increases the potential for more customers
  • There is a trade-off between accessibility and the cost of the land
  • The closer to the CBD, the more desirable land is to retail and the higher the price charged/paid
  • Industry cannot compete with high prices so it tends to be located further away from CBD
  • Residential use
    • The highest density of residential is nearest the CBD with flats/apartments, where rents/costs are highest
    • The density of residential decreases but the amount of residential increases with distance from the CBD as the price of land decreases

 bid-rent-theory

 Bid-Rent Theory

Proximity to the Central Business District & Economic Activities

  • The Central Business District (CBD) tends to be the oldest part of a city
  • Most CBDs are located at the centre of the urban area 
    • Where cities are located on the coast, the CBD is more likely to be close to the port
  • Features of the CBD include:
    • Banks, retail and commercial offices
    • Multi-storey development (vertical growth rather than horizontal growth due to lack of space)
    • Land of high value
    • Pedestrianised for high footfall
    • Public transport hub
    • Traffic restrictions on private vehicles
    • Low residential population
    • Main public buildings

Proximity to the CBD

  • Proximity is a measure of how close a location is to the CBD
  • Areas close to the CBD are:
    • More accessible, which is key for customers and workers 
    • Often prestigious, which is important for business and finance
  • Proximity to the CBD affects the type, intensity and diversity of economic activities in a location

Relationship Between Proximity to the CBD and Economic Activities

Factors Influence on economic activities
Land value Land closer to the CBD is more expensive and there is less available. This leads to high-density developments and more profitable activities
Accessibility Land closer to the CBD is usually more accessible. Transport links and infrastructure usually centre on the CBD, which makes the movement of goods and people easier
Agglomeration Economic activities are concentrated around the CBD which creates [popover id="~NtEjCbPQlZSazHf" label="economies of scale] and enables business networks. These increase productivity
Competition Competition for land in the CBD increases cost. It also increases pollution and congestion, which further increases cost

Planning

  • The urban morphology in cities is where growth is planned and demonstrates several key characteristics, including:
    • Structured and organised layout
    • Clearly defined zones for residential, commercial and industrial use
    • Efficient transport infrastructure
    • Open, public spaces
  • Where cities have grown up spontaneously, the urban morphology is less structured, and the cities often have:
    • Mixed land use 
    • Informal or squatter settlements
    • Irregular street patterns
    • Chaotic transport infrastructure

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    Bridgette

    Author: Bridgette

    Expertise: Geography Lead

    After graduating with a degree in Geography, Bridgette completed a PGCE over 25 years ago. She later gained an MA Learning, Technology and Education from the University of Nottingham focussing on online learning. At a time when the study of geography has never been more important, Bridgette is passionate about creating content which supports students in achieving their potential in geography and builds their confidence.