Urban Multifunctional Land Use: Theoretical and Empirical Insights on Economies of Scale, Scope and Diversity

A recent planning device aimed at dealing with land scarcity is the propagation of multifunctional land use. This paper describes the evolution of urban planning concepts and their links to economic theory. We argue that the most distinctive feature of multifunctional land use is its emphasis on return to diversity. This concept is rooted in the modern economic theory of agglomeration. Empirical evidence is shown to provide some support for the quantitative relevance of return to diversity, but is still to a large extent in its infancy. More evidence is required for policy purposes aimed at identifying the optimal extent to which multifunctional land use projects have to be pursued. (A)

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