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

Artur Holuj
European Research Studies Journal, Volume XXIV, Issue 1, 3-21, 2021
DOI: 10.35808/ersj/1947


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.

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