Economies of density: Difference between revisions
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In microeconomics, '''economies of density''' express cost savings resulting from spatial proximity of suppliers or providers. Typically higher [[Population density|population densities]] allow synergies in service provision leading to lower [[unit cost]]s.{{ | In microeconomics, '''economies of density''' express cost savings resulting from spatial proximity of suppliers or providers. Typically higher [[Population density|population densities]] allow synergies in service provision leading to lower [[unit cost]]s.<ref>{{Cite web|url=http://www.encyclo.co.uk/meaning-of-Economies%20of%20Density|title=Meaning of Economies of Density|website=www.encyclo.co.uk|language=en-US|access-date=2017-06-15}}</ref> If large economies of density exists there is an incentive for people to concentrate and agglomerate.<ref>{{cite web|url=https://www.philadelphiafed.org/research-and-data/publications/business-review/2012/q3/brq312_geography-history-economics-of-density-location-of-cities.pdf |title= Geography, History, Economies of Density, and the Location of Cities.| author= Jeffrey Lin |year=2012}}</ref> | ||
Typical examples are found in [[logistics|logistic]] systems where the distribution or collection of goods is needed, such as solid [[waste management]].<ref>{{cite journal|last=Eggimann S., Truffer, B., Maurer, M.|title=Economies of density for on-site waste water treatment|journal=Water Research|year=2016|volume=101|pages=476–489|doi=10.1016/j.watres.2016.06.011}}</ref> Delivering e.g. mail in an area with many postboxes results in overall cost savings and thus lower delivery costs. | Typical examples are found in [[logistics|logistic]] systems where the distribution or collection of goods is needed, such as solid [[waste management]].<ref>{{cite journal|last=Eggimann S., Truffer, B., Maurer, M.|title=Economies of density for on-site waste water treatment|journal=Water Research|year=2016|volume=101|pages=476–489|doi=10.1016/j.watres.2016.06.011}}</ref> Delivering e.g. mail in an area with many postboxes results in overall cost savings and thus lower delivery costs. | ||
Revision as of 09:42, 15 June 2017
In microeconomics, economies of density express cost savings resulting from spatial proximity of suppliers or providers. Typically higher population densities allow synergies in service provision leading to lower unit costs.[1] If large economies of density exists there is an incentive for people to concentrate and agglomerate.[2]
Typical examples are found in logistic systems where the distribution or collection of goods is needed, such as solid waste management.[3] Delivering e.g. mail in an area with many postboxes results in overall cost savings and thus lower delivery costs. Different network infrastructures such as electricity or gas networks show as well economies of density.
Economies of density are not to be confused with economies of scale where unit costs are not linked to spatial properties.
See also
References
- ↑ "Meaning of Economies of Density" (in en-US). http://www.encyclo.co.uk/meaning-of-Economies%20of%20Density.
- ↑ Jeffrey Lin (2012). "Geography, History, Economies of Density, and the Location of Cities.". https://www.philadelphiafed.org/research-and-data/publications/business-review/2012/q3/brq312_geography-history-economics-of-density-location-of-cities.pdf.
- ↑ Eggimann S., Truffer, B., Maurer, M. (2016). "Economies of density for on-site waste water treatment". Water Research 101: 476–489. doi:.