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Chapter 10

chpt 10 - Chapter 10- Form and Structure in the City.docx

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Ryerson University
GEO 106
Maria Piccioni

Chapter 10: Form and Structure in the City Bid Rent Theory – Johannes HeinrichVon Thunen (1800) - Bid rent theory: also known as land rent theory, was based on the cost of growing a crop, the price garnered by the crop at the market place, and the cost of transporting the crop between production site and marketplace - Essentially the theory is based on the idea that a particular piece of land will be used for the activity that can pay the highest “rent” (an economic concept of “payment” for the use of land) o Each piece of land gets sold or rented to the “highest and best use”  Highest is measured in terms of how much rent it can generate  Best means that the land will be used for that activity that best takes advantage of the site’s attributes, and can pay, and is willing to pay the most  These terms refer to economic concepts of value, only and what is best economically may not be what is best socially or environmentally - In order to produce wealth, land’s capitalize value had to increase, so land was valued for its location and its ability to improve its “Rent” paying ability - Improvement in rent paying ability could be gained by increasing density and intensity of land use - Land could be used to produce income and to produce status - The notion of “better” location suggested that accessibility (the city centre) was favoured by business, and status (specific areas, and the city’s side) was favoured by residences Class Notes: - He wants to maximize revenue from an agricultural society (profit = revenue – cost) - One city centre – one central business district, one market place, major node – which impacts all costs based on where the crop is situated - Highest use – measured in terms of how much rent you can generate - Best use – what kind of activity can you use on that land to take advantage of everything around it that is complimentary - Intextive and entextive crops determine the highest and best use - Land values - Roadway and railway – adding transportation makes more opportunities Bid Rent/Von Thunen’s Model - This model proposed that crops would be grown in concentric zones around the marketplace, based on each crop’s superior ability to pay “rent” for land within the zone o The crop had a superior ability to pay for its particular piece of land b/c at that particular location the crop could produce more profit than any other crop Profit = Revenue – Costs - The revenue is the price per unit of crop that can be got at the market, and the only costs considered are the costs of transportation of a unit of crop to the market - The curves in the bid rent model characteristics: o The y-axis represents the price per unit of product at the marketplace o The slope of the line represents the transportation gradient or cost of transportation per unit of production. High costs per unit give steep lines – these crops are grown close to market or too costly to transport to market o The terminal point of a line on the x-axis marks the margins of cultivation – if grown any further from the market the costs of transport to the market would be greater than the market price and no profit could be made o The uppermost cross over points of the lines represent the actual boundaries of each crop’s production o Bid rent: the diff between one crop’s starting point on the y-axis and the next lower crop’s starting point - Figure 10.1 The Bid Rent Model pp. 235 - X-axis = distance from market, y-axis = rent (price/unit) - **For any crop to draw the line easiest way is use the formula, set D = 0 to find the first point R, then rearrange formula for D and set R to 0, now you have 1 point on both axes and can draw the line** Urban Land Use & Land Value Theory – William Alonso (1960) pp. 238 - Figure 10.2 The Urban Bid Rent Model pp. 239 o The urban model is similar to the agricultural model, except that the “Crops” are urban land uses (offices, retail, manufacturing, apartments and single family homes) and transportation cost is interpreted as the need to be centrally located, or as accessibility.  Centrally located means being in the centre of the economic landscape, which was the central business district (or downtown)  This usually means being at accessible locations: close to downtown as possible, but also major intersections or major walkways within shopping malls - The steeper the slope, the closer you need to be to the market place (the higher the need for centrality) - The profit margin is seen to be the starting point (y-axis) or the “price” of the product gets at the market, distance from most accessible point on x-axis - The “Crops” are now retail, industrial and residential - Pop density declines from the centre, faster than the decline in land values - Further from the city = less pop density but bigger lot size with same amount of money - Figure 10.5 The Urban Bid Rent Model with Local Use Variations pp. 241 
 o Also works on small scale (Fashion Stores given closer spot to major intersection then hardware since they can pay biggest rent) Bid Rent & Residential Choice Behaviour - According to Alonso, residential locational choice represents an attempt by people to balance to conflicting preferences: 1. Access to the core (CBD) 2. Desire for maximum amount of living space - The combination of these 2 variables is called utility – people try to maximize their utility (as much space and as close to the core as possible) within the means available to them o To maximize utility – subject to 2 factors: 1. Transport costs (journey to work costs) generally increase away from the core, so that the further one lives away from the core the more money must be spent to get to the core (all work is located in CBD – downtown) 2. Land costs generally decrease away from the core, so that the further away one lives the more land one can get per $ spent - Since people have finite amounts of money to spend on housing, they must trade-off travel costs against amount of land they can afford o All things being equal and if money isn’t a problem, you can live in a smaller house closer to the city, or a bigger house further from the city o People work in the core and have no particular residential preferences except for size - Figure 10.9 Residential Location Choice pp. 245 o Two indifference curves – one for wealthier people, one for poorer people o The indifference curve represents all the possible combinations of housing costs and journey to work costs for each of the groups – any point on this curve satisfies the budget constraints for that group of people o Each group could trade off high cost housing for proximity to the core, using money they save on journey to work costs for housing costs o Rich people can always outbid the poorer people for a given location - Figure 10.10 Land Use Patterns pp. 247 o Other considerations involve mode of transportation people have and the value of time to particular groups o Cost and time criterion, walking and driving time The Spatial Form of the City’s Countryside - The evolution of a metropolitan area is complex, and is comprised of a number of elements: o The spatial extension of the physical form of the city (buildings, r
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