Learn about the potential externalities, such as increased traffic on nearby roads, that can result from building a new shopping center development in a rural area. Prepare for the USGBC LEED Green Associate Certification Exam with this expert question and answer.
Table of Contents
Question
When a developer builds a new shopping center in a rural area, one externality might be
A. an increase in profits for the developer
B. an increase in traffic on adjacent roads
C. an increase in installation of rooftop solar
D. an increase in the fees for customer parking
Answer
B. an increase in traffic on adjacent roads
Explanation
An externality is a consequence of an economic activity that affects other parties who are not directly involved in the activity. Externalities can be positive or negative, depending on whether they create benefits or costs for others.
When a developer builds a new shopping center in a rural area, one externality might be an increase in traffic on adjacent roads. This is a negative externality because it imposes costs on other road users who are not part of the development project, such as increased travel time, fuel consumption, air pollution, noise pollution, and accident risk.
When a developer builds a new shopping center in a rural area, one significant externality (an unintended or indirect consequence) is likely to be an increase in traffic on roads adjacent to and leading to the shopping center.
A few key points:
- Rural areas tend to have lower baseline traffic levels compared to urban/suburban areas. A new shopping center would represent a major new traffic generator.
- Shopping centers attract customers from a wide area who drive there, resulting in increased car trips and traffic, especially on main access roads. This externality impacts the broader community, not just the shopping center itself.
- Increased profits for the developer is a direct intended effect, not an externality. Solar panel installation and parking fees are confined to the site itself. But traffic impacts spill over to affect nearby public roads and communities.
So in summary, B is the best answer, as increased traffic on adjacent roads is the most logical externality extending beyond the shopping center development itself to impact the surrounding rural area in an unintended way.
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