The activities of individuals or groups may, give rise to spillover benefits or additional costs to others. In certain circumstances externalities may be dealt with by ?internalization?, agreement, or through the market mechanism. For example, a large communal garden space can be made exclusive when a single developer is able to provide the entire households living in the vicinity of the garden ample space to enjoy fresh air.
Or, within a local community, rules may be drawn up governing car parking, standards of housing maintenance; children?s play areas, etc. With respect to the efficient management of Apartments Cochin is witnessing this trend in a majority of the high-rise apartment complexes. Alternatively, such matters may be covered more rigidly by covenants in the leases of the same estate. Finally, external benefits result in certain firms congregating in particular areas, e.g., the huddling together of offices and business concerns in particular areas of the City of Cochin, because by dominating a particular market, they can exclude other types of businesses by offering higher rents.
But wherever the total effect of the externality is important, but spread so thinly that the persons affected cannot be identified for purposes of coordinated action, state intervention will become inevitable. These conditions apply with respect to land put to particular uses. The type of building erected and the use to which it is put to also affects the welfare of not only its neighbors but also the passers-by. Thus both the design of the building and its use are subject to public intervention through appropriate planning controls.
In practice, such controls tend to concentrate on dealing with undesirable external effects. For instance, it seeks to eliminate competitive uses of adjacent lands, e.g. factories in residential areas and in the erection of buildings, which do not harmonize with their surroundings, or to prevent loss of variety in shopping centers or in employment outlets. But planning can also be positive, arranging complementary uses, e.g., by siting dwellings, schools, shopping facilities and bus terminals in strategic areas, or by encouraging the preservation of a listed building by granting a change from its present uses.
Or, within a local community, rules may be drawn up governing car parking, standards of housing maintenance; children?s play areas, etc. With respect to the efficient management of Apartments Cochin is witnessing this trend in a majority of the high-rise apartment complexes. Alternatively, such matters may be covered more rigidly by covenants in the leases of the same estate. Finally, external benefits result in certain firms congregating in particular areas, e.g., the huddling together of offices and business concerns in particular areas of the City of Cochin, because by dominating a particular market, they can exclude other types of businesses by offering higher rents.
But wherever the total effect of the externality is important, but spread so thinly that the persons affected cannot be identified for purposes of coordinated action, state intervention will become inevitable. These conditions apply with respect to land put to particular uses. The type of building erected and the use to which it is put to also affects the welfare of not only its neighbors but also the passers-by. Thus both the design of the building and its use are subject to public intervention through appropriate planning controls.
In practice, such controls tend to concentrate on dealing with undesirable external effects. For instance, it seeks to eliminate competitive uses of adjacent lands, e.g. factories in residential areas and in the erection of buildings, which do not harmonize with their surroundings, or to prevent loss of variety in shopping centers or in employment outlets. But planning can also be positive, arranging complementary uses, e.g., by siting dwellings, schools, shopping facilities and bus terminals in strategic areas, or by encouraging the preservation of a listed building by granting a change from its present uses.