This document discusses spatial economics and its applications. It begins by defining spatial economics as creating solutions to help planners, economists, and analysts understand the urban and regional environment. It then provides examples of how spatial data and analysis can be used for various purposes like housing development, land use planning, disaster management, and infrastructure projects. The document also discusses challenges with spatial data like data quality, access, and privacy. It emphasizes the importance of data collection, storage, analysis and sharing for practical applications of spatial economics. Overall, the document promotes the use of spatial analysis and economics to help solve management, development and policy issues at regional and local levels.

1. Spatial economics
“ where and what”
Chethna Ben
Graduate Assistant (Masters Student)
Gold Medallist 2012 BA Land Management and Development
© 2014
“Spatial Economics creates
original solutions and products
and provides practical advice to
assist planners, urban and
regional economists and policy
analysts understand the urban
and regional environment.”

2. The Flammarion engraving (1888) depicts a traveller who arrives at the edge
of a flat Earth and sticks his head through the firmament.
Source: Google

3. Cartography

4. Source: Department Town and Country Planning
ArcGIS (esri)
founded 1969
Jack and Laura
Dangermond

5. ArcGIS(esri)

6. The existing and possible use of Spatial
Economic illustrations
Competing Uses of land and information and analysis
 Look at normal spatial map : General_Chethna
 Housing Development Data: Melbourne dwelling density
 Interactive land supply using google maps: G21Melbourne
 Fiji Sugar cane growers GIS portal
 Urban and Rural development
 Disaster Risk Management
 Location and Distance queries (Network Analysis)
 Water management
 Density and Trend
 Agriculture, Sustainable development and food security
 Infrastructure and roads
 Network- Infrastructure and Watershed
but……

7. Data Needs and Integrity
First question: how good is the data? Good for what?
Second question: how to measure
 Historic approach and limitation of storing data
 We have so many data?
So many formats
So many places
 Access to data?? is lonng and looonnnong
 Series of update eg topographic maps– almost 10 years?
 Scale – variance depending on level of mapping
 Problems with existing attribute data on gis database
“the power of the map is from the table”

8. So…
 Storage of data and uniformity
 Data collection based for objective purpose
 Intelligent use of these data. Is it a mystery?
 Identify users – and purpose
 How are we interpreting, and presenting
 Platform for data access
 Ability to share
 Calibration and Collaboration leads to value
output

9. Spatial Analysis Issues
 Common errors in precision and accuracy of position and
space; mathematics of space
 The manner data are presented spatially- coordinate
systems
 Tools available for analysis- uses and users
 Census data and individual privacy
 Availability of data or access
These problems represent a challenge in spatial analysis
because of the power of maps as medium of presentation
and a powerful tool for analysis

10. Agriculture Sector
 Policy driven- economic GDP per captia
 Allocation and use of land limited - Lease structure, traditions and
policy
 Agenda 21 “Land use planning is a decision making process that
facilitates the allocation of land to the uses that provide the
greatest sustainable benefits”
 In Fiji - Sugar cane as its major export commodity- capable?
Suitable?
 Agricultural land conversion made simpler
- 2013, September - Fiji
- 2014 July, - Maharashtra

11. Ricardo (1821): Theory of land use based on
fertility
Spatial economies theory and
practical approach
The agricultural leased land rental are based on the land use classes in Fiji
is also driven by the same principle

12. The Fiji Commerce Commission, price
control order 2012 price list as at 20th
July 2014 with amendment is an
interesting example of access to
market condition. The idealistic way
many of you might say to see it is:
 The rural areas compared to the
urban centres have an interesting
difference (higher price) in
wholesale and retail maximum
price set. An estimate of 3 – 5%
higher than the urban cost.
 The producers of the goods are
left paying higher an example of
improper organisation of
cooperative firms and lower
incentives for the farmers. Rural
population have lesser
opportunities of blue, white collar
job and income range.
 A strategic distribution of firms
can help solve the market
disadvantage on the rural
population. Examples are farmers
better access of selling their
produce to the manufacturing,
industrial markets, by zoning and
encouraging firms to develop at a
suited location.
Von Thumen Model

13. Spatial Economies Approach
 Henderson (1974) “ urban systems” In this
type of framework, cities arise endogenously
as the result of a trade-off between
agglomeration economies and urban crowding.
 Urban concentration and policies and mapping
have been widespread
 The rural planning is a timely need for highly
concentration. Filled with open space, rich
soil, air, natural resources, filled with
agricultural land. Once the natural resources
are lost, its hard to renew or convert it back.

14.  The one of the major problem faced by spatial
economics is that many fundamental issues having to
do with regional and urban development call for
general equilibrium modelling.
 For instance, some cities can afford to specialize
because they can trade with other cities.
 Hence, looking at one isolated city in the tradition of
Thümen and Alonso (theory of location and land use)
may not be enough for some purposes. Similarly, the
agglomeration of economic activity in core regions
may occur because firms find larger markets there
and because consumers find cheaper and more
diverse supplies.
 These two forces are mutually reinforcing.

15. Research spatial allocation of
land questions
 Are the current allocation of crops capable to its land
characteristic?
 What are the most capable crops to ensure land best practice?
 Does the best land use practice equate to higher productivity?
 Are the current land practices within the capability range?
 Are the market of the produce suitably profitable?
 How are the market spread to encourage value added
production, cooperatives and allocation of market? (where to
allocate the market to nearest distance to produce)
 Can now the lease rental be based on land output- residual
value approach?

17. NOT TO LET THE CAT OF THE
BAG
 WAIT FOR THE CABILITY AND SUITABILITY ANALYSIS IN
THE THESIS

18. Because of the nature of spatial
allocation…
 We can visualize the story that the map has to tell
 Question the trend and pattern
 Query through GIS reports and charts
 Apply scenarios
 Investigate potential development proposals
 And SHARE information meaningfully

19. Through which
use of spatial economics has many purposes and ability to analyse
more than one theme in problem solving;
 Use of space
 Manage assets
 Urban Regional development
 Sustainable development
 Distribution and allocation of resources
 Market Proposal and development strategies
 Price economics
 Poverty alleviation
If we place spatial economic allocation at the forefront in regional,
urban planning context. And with a strong network with ministries.

20. Solve
 Management issue of local capacity building
 Attract investment through competent market
allocation
 Improve network building
 Infrastructure development and management
 Population - Human resources allocation
 Focus on the regional and local development
policies
 Policy improvement

21. The strategy we develop today will affect
our world’s actions tomorrow
Source: Courtesy of the Social and Spatial Inequalities Research Group