03-28-2023, 06:06 AM
Applications
By isolating the cheapest areas and assessing the costs of developing them the physical planner and the economist have considerable common ground since the threshold can equally well be expressed as a line on a map or a step on a cost curve. The economist would make use of this method because it can throw light on the problem of the efficient use of scarce resources. The practical planner may regard it independently of the economic significance as a tool for the objective appraisal of possi- bilities for development by discovering and quantifying the alternatives.
The obstacles to full co-operation, however, are by no means demolished. Threshold analysis is an economically rational one but there is little advantage in optimising decisions in a series of small areas. By presenting comparable alternatives the method continually points up improvements necessary in the planning system. The planning area must be large enough to enable a meaningful choice to be made of the most efficient solutions. Otherwise the many constraints set by administrative and other planning criteria so restrict the alternatives that the role of the economist must be extremely limited. The attempt to designate areas most relevant for planning decisions
raises a danger of sparking off a further instalment of the debate 'what is a region?' One may, however, distinguish two types of development situations which will typically arise and the implications of the planning choices arising from them.
(a) With a given employment structure, there is a choice of where housing and auxiliary service will be provided. The alternatives in this case will arise in the area which may be regarded as the local labour market, that is the area within which workers will normally seek employment.
(b) Where employment distribution has not yet been determined to any considerable extent, the area of possible development is much wider.
Threshold analysis may be applied to discovering the cheapest sites for industry but more often in this type of locational decision the special requirements of certain types of industry may override the choice indicated by the cheapest initial investment. Many planning authorities, especially in Development Areas would hesitate to quibble with a major incoming industrialist. But if it were possible to discover the costs of developing alternative areas either for the industry itself or for accompanying housing development, this information could help de- termine the 'growth points' of the region. However, when the area of review is as wide as a region, the relative importance of threshold analysis is limited by the number of other considerations.
The analysis, therefore, can help define the development potential of a single local area, a town or town group. It can also provide a basis for regional planning in indicating which urban groupings are capable of taking a major expansion of population. If the local surveys were comprehensive enough (i.e. not limited by arbitrary administrative division). and standardised, then the local planning process would throw up the in- formation which will help determine regional policy. The information will provide data upon which to base further reviews of development plans. Since by using this method the basis of present decisions is explicit, it will contribute towards greater flexibility in long term planning. In the long-term an investigation of thresholds and the investment needed to open up substantial new areas will be an important contribution to in- tegrating the requirements of local development into the national budget- ary process. Development can be phased to avoid an excessive b public expenditure and construction resources. Taking this line of thought a little further, planning authorities may be required to submit proposed capital budgets with their development plans. The integration of these requirements related to the capital resources available for local authority use would help determine a practical time scale for the development proposals.
By isolating the cheapest areas and assessing the costs of developing them the physical planner and the economist have considerable common ground since the threshold can equally well be expressed as a line on a map or a step on a cost curve. The economist would make use of this method because it can throw light on the problem of the efficient use of scarce resources. The practical planner may regard it independently of the economic significance as a tool for the objective appraisal of possi- bilities for development by discovering and quantifying the alternatives.
The obstacles to full co-operation, however, are by no means demolished. Threshold analysis is an economically rational one but there is little advantage in optimising decisions in a series of small areas. By presenting comparable alternatives the method continually points up improvements necessary in the planning system. The planning area must be large enough to enable a meaningful choice to be made of the most efficient solutions. Otherwise the many constraints set by administrative and other planning criteria so restrict the alternatives that the role of the economist must be extremely limited. The attempt to designate areas most relevant for planning decisions
raises a danger of sparking off a further instalment of the debate 'what is a region?' One may, however, distinguish two types of development situations which will typically arise and the implications of the planning choices arising from them.
(a) With a given employment structure, there is a choice of where housing and auxiliary service will be provided. The alternatives in this case will arise in the area which may be regarded as the local labour market, that is the area within which workers will normally seek employment.
(b) Where employment distribution has not yet been determined to any considerable extent, the area of possible development is much wider.
Threshold analysis may be applied to discovering the cheapest sites for industry but more often in this type of locational decision the special requirements of certain types of industry may override the choice indicated by the cheapest initial investment. Many planning authorities, especially in Development Areas would hesitate to quibble with a major incoming industrialist. But if it were possible to discover the costs of developing alternative areas either for the industry itself or for accompanying housing development, this information could help de- termine the 'growth points' of the region. However, when the area of review is as wide as a region, the relative importance of threshold analysis is limited by the number of other considerations.
The analysis, therefore, can help define the development potential of a single local area, a town or town group. It can also provide a basis for regional planning in indicating which urban groupings are capable of taking a major expansion of population. If the local surveys were comprehensive enough (i.e. not limited by arbitrary administrative division). and standardised, then the local planning process would throw up the in- formation which will help determine regional policy. The information will provide data upon which to base further reviews of development plans. Since by using this method the basis of present decisions is explicit, it will contribute towards greater flexibility in long term planning. In the long-term an investigation of thresholds and the investment needed to open up substantial new areas will be an important contribution to in- tegrating the requirements of local development into the national budget- ary process. Development can be phased to avoid an excessive b public expenditure and construction resources. Taking this line of thought a little further, planning authorities may be required to submit proposed capital budgets with their development plans. The integration of these requirements related to the capital resources available for local authority use would help determine a practical time scale for the development proposals.