ARCH 423

Planning 3-
Introduction to Urban and Regional Planning
LOCATION THEORY

Prepared by: Ar. Joseph Ty Macario, uap

 LOCATION THEORY
explains the pattern of land-use and indicates a solution to
the problem of what is the most rational use of land
suggesting ways in which the current pattern can be
improved.
In economics, location theory is concerned with the
geographic location of economic activity. It addresses the
questions of what economic activities are located where
and why.
 Theory of Bid-Rent Theory
Agricultural Land of Land Use

LOCATION THEORY

Theory of
Central Place Theory
Industrial Location
THEORY OF AGRICULTURAL LAND
• Forest
• Grains & Field Crops
• Ranching & Livestock 1 2 3 4 5
• Market
• Dairy Farming
THEORY OF AGRICULTURAL LAND

also known as Von Thunen’s Model and is used to predict

and explain agricultural land use pattern in European
villages during the 1800s.
 JOHANN HEINRICH VON THUNEN
introduced the theory of agricultural land in his book
entitledDer isolierte Staat (The
Isolated State) in 1826.

• German agriculturalist

• best known for his work on the relationship between the cost of commodity
transportation and the location of production.
ASSUMPTIONS:
VARIABLES:
BID-RENT THEORY OF LAND-USE
• Industrial
• Residential
1 2 3 4
• CBD
• Commercial
BID RENT THEORY OF LAND USE

indicates the relationship between the house or property

price and the distance from the city center or the CBD.
 WILLIAM ALONSO built upon the Thunen
model to account for intra-urban variations in land use
Location
which is discussed in his book entitled
and Land Use: Toward a General
Theory of Land Rent in 1964.

• Argentinian-American planner and economist

• he attempted to apply accessibility requirements to the city center for

various types of land use.
THEORY OF INDUSTRIAL LOCATION
THEORY OF INDUSTRIAL LOCATION

also known as Least Cost Theory. This theory sought the

optimum location for the production of a good based on the
fixed locations of the market and two raw material sources.
 ALFRED WEBER formulated the theory of
Uber den
industrial location in his book entitled
Standort der Industrien (Theory of
the Location of Industries) in 1909.

• German economist and geographer

• he sought to determine the least-cost production location within the

triangle that was formed.
FACTORS

1 Transportation
Reduce amount of money to transport goods

2 Labor
Pay people/ workforce with least amount

3 Agglomeration
Benefits of having similar businesses located near each other
WHERE WILL YOU LOCATE YOUR
INDUSTRIAL FACTORY?
WHEREVER OF THE 4 LOCATIONS
ASSUMPTIONS:
 ?

WHERE WILL YOU LOCATE YOUR PRODUCTION SITE?

NEAR THE MARKET
 ?

WHERE WILL YOU LOCATE YOUR PRODUCTION SITE?

NEAR THE SOURCE
TYPES OF MANUFACTURING PRODUCTS

BULK product becomes more difficult should be located near

to transport after manufacturing the market
GAINING

BULK product becomes easier to should be located near

transport after manufacturing the source
REDUCING
CENTRAL PLACE THEORY
 CENTRAL PLACE THEORY

offered geometric explanations as to how settlements and

places are located in relation to one another an why
settlements function as hamlet, villages, towns or cities.
 WALTER CHRISTALLER formulated the
Die
central place theory in his dissertation entitled
zentralen Orte in Suddeutschland
(The Central Places in Southern
Germany) in 1933.

• German geographer

• his study included analyzing the relationship between settlements of

different sizes and related their economic activities with its population.
ASSUMPTIONS:
One should remember:
CONCEPTS

1
Urban Center & Hinterlands
Urban center- center for providing services
Hinterlands- area surrounding the center

2
Threshold
Minimum no. of people needed to make service viable at a
particular place.

3
Range (of good or service)
Maximum distance that a consumer is willing to travel to
purchase a good or avail a service.
SIZES OF SETTLEMENTS
END