Section 5 Location Theory
Main content of this section].
1. The meaning of location
2. Factors influencing location
3. Several major location theories
Fourth, the relationship between location and land price
5. Application of location theory in land valuation
The meaning of location
Location is a comprehensive concept, which is a reflection of the interconnection between natural geographical elements and human socio-economic activities and the role of spatial location.
The natural geographical location refers to the spatial relationship between a certain thing and its surrounding land, mountains, rivers and lakes, oceans and other natural environments, as well as the combination characteristics of natural conditions such as geology, landform, vegetation and climate on the location
Economic geographical location refers to the human-land relationship formed or created in the process of human social and economic activities.
Factors influencing location
It refers to the factors that affect the level of land price between areas within towns, mainly including the degree of prosperity or concentration of elements, the location of the region in the town, traffic conditions, the level of public facilities and infrastructure, regional environmental conditions, planning and land development and utilization restrictions, and natural conditions.
There are several main types of location theories
1) Agricultural location theory.
In his book "Isolated Country", the German economist Du Neng takes the fictional "isolated country" and the Tailou farm he runs in Mecklenburg, Germany, as an example, trying to prove that the distribution of agricultural products depends on the distance from the market and the amount of transportation costs, and thus conceives a six concentric circles of agricultural distribution centered on the city, which is one of the more popular agricultural distribution theories in Western countries.
Under the assumption of an isolated country, Du Neng believes that the profit of agricultural products (p) is determined by three factors: the cost of agricultural production (e), the agricultural market** (v) and the freight cost of agricultural products (t), which is expressed by the formula as.
p=v-(e+t)
The conclusion is that the type of land use and the degree of agricultural intensification around the city change in a band-like manner with the increasing distance, forming a series of concentric circles around the city, which are called "Du Neng circles".
Du Neng's research on the theory of agricultural location starts from the differential rent, clarifies the influence of market distance on the degree of agricultural production intensity and land use type (agricultural type), and concludes that the agricultural layout should be allocated with different crops from near to far, and its management mode should also change from intensive to extensive.
Du Neng deduced the optimal location of crops from the theory of establishing agricultural circles to realize agriculture and the rational combination of various crops in each circle.
2) Industrial location theory.
The German economist Weber is considered to be the founder of the theory of industrial location, and its representative is the "Theory of Industrial Location".
Weber believes that the choice of industrial location is mainly determined by the size of production costs, that is, any ideal industrial location should be selected in the location with the smallest production costs.
He first proposed and analyzed the concept of "location factors" in his theory, and believed that location factors can be divided into three categories:
1) General location factors and special location factors.
2) Regional, agglomeration and dispersion factors.
3) Natural, technological, and socio-cultural factors.
At the same time, Weber believes that the only factors that determine the production cost of an enterprise are transportation costs, labor costs and agglomeration factors, and freight is the most important factor.
Weber's Three Laws of Industrial Location:
1) The law of transportation location.
Raw material index = raw material quality unit mass of the product (1 ton of product).
When the raw material index is 1, the place of production is located at the place of raw materials;
When the raw material index is 1, the place of production is located at the place of consumption;
When the raw material index = 1, the place of production can be located in the place of raw materials or the place of consumption.
According to this basic principle, Weber analyzed different situations such as one market and one raw material location, one market and two raw material fields, and one market and multiple raw material locations, and proposed the famous "location triangle" model to prove and select the freight orientation location.
2) The law of labor location.
When a certain location is beneficial to the enterprise due to the very low labor cost, the production location of the enterprise can be attracted from the lowest point of freight to the lowest point of labor cost, so that the first spatial "deviation" of the freight orientation location can occur.
However, the condition is that the factory can move from the minimum point of freight to the point of labor supply only when the amount of labor cost savings and freight increases.
3) The law of agglomeration (dispersion).
Factories are led from the point of minimum freight to agglomeration areas or scattered areas. The condition is that the benefits obtained by agglomeration (or dispersion) of the industrial enterprise can be agglomerated and dispersed by moving out of the increased cost of the minimum point of freight.
3) The Theory of Central Place.
The central theory is a theory about the location of cities, which was first created by the German geographer Christaler and published in his book "The Heartland of Southern Germany".
Centrally, there are the following basic concepts:
1) Centrality and centrality functions.
2) Population threshold.
3) The maximum sales distance of the goods. That is, the actual distance should be between the ideal distance and the minimum distance.
Christaler argues that there are three central hierarchies that can be established, and these three principles:
The principle of market optimality (supply and demand), the principle of traffic optimality, and the principle of administrative optimality.
The relationship between location and land price
Regional influencing factors mainly affect the value of land by affecting the comprehensive quality and intrinsic function of the land.
1.For agricultural land, consider:
The first is the macro location distribution, that is, the distance from the place where agricultural products are sold, or the city.
The value of agricultural land in the outskirts of the city is certainly not as valuable as that in the suburbs, and even less in the remote mountainous areas.
Second, the distance between agricultural land and the place where the cultivators live and where the means of agricultural production are stored, the closer it is, the higher its value.
In addition, the distance of agricultural land from the water source is also important, and the agricultural land that is far away from the water source will be much more expensive to cultivate, and its value will not be very high.
Another important point for agricultural land around the city is how likely it is to be converted into construction land in the future. Generally speaking, the closer the land is to the city, the more likely it is to be repurposed, so the potential value will be greater, and therefore its market value will be higher.
2.For industrial land, the distance from the raw material site, the distance from the transportation hub, and the distance from the site where pollutants can be discharged are all important. The judgment of the location of industrial land is very complicated, in addition to following the basic distance relationship law, it also needs to be comprehensively evaluated, especially according to the specific industrial category.
3.Obviously, the closer the land is to the city center, the better its value can be reflected, which is in line with the location theory summarized in the early days.
However, with the development of society, there are many types of commercial services, and many commercial services have special service objects. The commercial facilities provided for these clients do not have to be close to the center of the city. For example, supermarkets are generally located in densely populated areas, not necessarily in urban centers.
4.The value of urban residential land depends on:
One is along the city's traffic arteries, and the other is some areas with natural environmental resources.
The third is a region with good human environment resources.