While cities face rising congestion and air quality issues, many municipal authorities are investing heavily in urban greening and active travel projects. The Green Spaces Coalition (GSC) is an advocacy group that 'promotes, funds, and preserves parks and urban forests to enhance public wellbeing.' In short, its mission statement reads, 'it makes urban living healthier.'
Between 2018 and 2022, the GSC secured £850 million from municipal developer contributions, alongside an estimated £600 million from national environmental trusts. This funding supported community gardens, woodland reforestation zones, and dedicated cycle networks. Advocates argue that the external benefits of these green infrastructure projects are substantial, particularly through reducing chronic local healthcare costs. Furthermore, economic research indicates that for every £1 spent on urban forestry, up to £4 in wider social value is returned to the public sphere.
Active travel initiatives also play a key role in transformation. Dedicated cycle highways and pedestrianised zones offer individuals a safe chance to commute without cars. This reduces road congestion, lowers particulate emissions, and boosts local trade, demonstrating that localized environmental improvements can ripple across an entire city.
Question
Define the term 'external benefits' (Extract F, line 8).
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.