Examine the challenges of economic growth and urbanisation to environment.

It is difficult to disentangle and measure the effects of agglomeration because of their complexity and feedback effects. The benefits of economic concentration are partly absorbed by higher land and labour costs and offset by increased congestion. Consequently, the effects may not be readily apparent in aggregate economic indicators such as output, employment or average earnings. These variables are influenced by many other factors as well, such as the city’s industrial structure and occupational composition. The effects may not be apparent at the scale of city administrative units, for which spatial data is conventionally available, because of their openness and leakage of resources across boundaries. Government financial transfers between localities can __________ ___ __________ _______ _________ ___.
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