Question

1. How does the scarcity of land influence land use choices? Would you find as many golf courses per capita in Japan as in Australia? Explain.

Answer 1

Introduction:-

Scarcity of land resources is a serious concern for many small countries which do not tend to have it as an adequate resource. All countries across the globe are aware that land is a very limited and scarce resource and must be actively managed, failing which it becomes extremely difficult to have a thriving economy.

Over the years, significant progress has been made by countries to allow for alternative uses of the same piece of land. This allows for higher productivity and reduces the chances of land being misused or mismanaged. Countries are aware that land use is one of the key determinant factors of the Gross Domestic Product, thus efficiency is targeted across most countries of the world. However larger countries have a natural advantage in allocation of land as a resource which is the key topic of the case study at hand and is explained as follows:-

Case Specifics:-

The scarcity of land is an active consideration while deciding how a country utilizes the land which it possesses. Larger countries have more choice making options, and can thus allocate their land differently. Smaller ones need to choose more actively as their resources are relatively lower.

Consider Land as fixed capital. One country having more of it can utilize it for alternative uses whereas countries which do not have it in abundance would need to consider and weigh their options before deciding which one to choose from.

Since, land has a big role in deciding the final output of a country, small countries like Japan in today's world cannot afford to have large golf courses whereas Australia, which has vast abundance of land can afford the same. Thus being a resource which is different in different areas of the world, land allocation needs to be different.

Japan needs to utilize its land bank judiciously and cannot afford to misuse it whereas Australia can allow for more lenient approach even when land is a scarce resource because of the difference in availability.

Please feel free to ask your doubts in the comments section if any.