1. +
The Economics of
Urbanization
How Policies and Initiatives
Influence Human Behavior

2. +
The Costs of Living in a City
“The City,” Ed Sheeran

3. +
What negative effects can result
from rapid urbanization?
An externality is an unintended
consequence of actions that people or
groups of people take, which can affect third
parties (or those who are not a part of the
action that was taken)
 Externalities can be caused by consumers or
producers
 Ex: Honking, traffic, pollution, trash

4. + What negative externalities
occurring in London does Ed
Sheeran sing about?
Look at your lyrics

5. +
How can you influence human behavior
to minimize externalities?
 An incentive is anything that motivates an individual
to make a particular decision or complete a specific
action.
 Ex: Bonuses, solar roofs, merit-based scholarships

6. + How could the government
incentivize city dwellers to make
more responsible choices?
Group Think

7. +
Case Study: How Sweden
Fixed Traffic Problems
How to Solve Traffic Jams