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Measurement Strategies of Externalities

In: Economics of Urban Externalities

Author

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  • Shiva Raj Adhikari

    (Tribhuvan University)

Abstract

The chapter provides measurement strategies of the negative externalities of squatter settlements (SS). The formal economic model bridges the above-highlighted gap and attempts to develop a theoretical framework to better understand the impact of a squatter settlement in urbanization. The innovative idea is to measure the incidence and intensity of externalities of various components of individual, household, and community activities and to estimate their costs to the society. This study provides the comparative analysis that is considered as a case study to improve understanding of the urbanization issues between Latin America and Asia. The case study compares the current status of negative externalities in two mountainous capital cities; Kathmandu and Quito. Both similarities and differences in the attributes of Kathmandu and Quito allow to compare the externalities; for example, per capita income in USD in Quito is higher than Kathmandu; however, levels of income poverty using national poverty line income in both cities are almost equal. Both cities are important migration poles and have experienced significant demographic growth. The incidence and intensity of externalities are higher in Kathmandu than in Quito. Reduction of negative externalities in SS means creating positive externalities in the city.

Suggested Citation

  • Shiva Raj Adhikari, 2016. "Measurement Strategies of Externalities," SpringerBriefs in Economics, in: Economics of Urban Externalities, edition 1, chapter 0, pages 15-27, Springer.
    • Handle: RePEc:spr:spbchp:978-981-10-0545-9_3
    DOI: 10.1007/978-981-10-0545-9_3
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