World Travel City Photography

Cities also generate positive external effects. The close physical proximity facilitates knowledge spillovers, helping people and firms exchange information and generate new ideas. A thicker labor market allows for better skill matching between firms and individuals. Another positive external effect of cities comes from the diverse social opportunities created when people of different backgrounds are brought together. Larger cities typically offer a wider variety of social interests and activities, letting people of all backgrounds find something they can be involved in.
Cities may however also have a positive influence on the environment. UN Habitat stated in its reports that city living can be the best solution for dealing with the rising population numbers (and thus still be a good approach on dealing with overpopulation). This is because cities concentrate human activity into one place, making the environmental damage on other places smaller. Letting the cities have a positive influence however, can only be achieved if urban planning is improved and if the city services are properly maintained.