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Externalities in the Light of Selected Spatial Economy Issues - Contribution to the Discussion

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  • Artur Holuj

Abstract

Purpose: The aim of research is to identify major differences between externality effects and spillover effects. It discusses selected spillover effects in spatial planning and it attempts to identify interdependencies between implemented spatial management and the resulting spillover effects. Design/Methodology/Approach: The identification and assessment of endogenous relationships in implemented spatial policies as part of a specific spatial economy and spatial management is not an easy task. The assessment was made based on a review and an analysis of available literature. In issuing own opinions, scientific research in which the author of the text actively participated, was also important. Findings: Who causes negative externalities is obliged to compensate for the losses suffered by those injured. It may be financial satisfaction, investment in infrastructure, investment into the investment fund, etc. Those who generate effects should strive to eliminate them, e.g., by changing the form of land use or organizing production - which may also be subject to government compensation. Practical Implications: The paper presents major differences between externalities and spatial spillover in the context of space management and spatial economy. The distinction may be required to determine the prices and benefits of spatial economy. Originality/Value: The proposed spatial spillover effects are the core of external effects generated by spatial planning. The author answers the question about the sources of external effects in spatial planning. What or who causes external effects? In addition, it is worth asking a research question to what extent it is possible to scientifically analyse the spatial spillover effect and whether it is possible to indicate all external effects generated by spatial planning at all.

Suggested Citation

  • Artur Holuj, 2021. "Externalities in the Light of Selected Spatial Economy Issues - Contribution to the Discussion," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-21.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:1:p:3-21
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    References listed on IDEAS

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    More about this item

    Keywords

    Spillover effect; externalities; spatial planning; spatial policy; spatial economy.;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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