Land reclamation.. yay or nay?
Figure 1 is the PPF of Malta (£). According to the context of the article, six potential areas have been identified to land reclamation in Matla (1). Assuming Malta is already producing at full employment of point A, when the six areas of land are reclaimed, there will be a physical increase in land from 316 square kilometers to more (3); land being a factor of production and natural capital. Increase in the institutional framework and capacity to produce will induce a shift in the PPF to point B, as there is an increase in production possibilities of commercial and industrial (2) and creation of natural habitats (2), all contributing to economic growth. The increase in natural capital of land can be shown in the increase from C to D, the increase in consumption in social housing (5) and tourism to exceed 3 million each year (3) (4) can be reflected by the increase in consumption from E to F.
