ABSTRACT
Transportation costs are another major detriment to the location of industries and urban centres in desert areas, and thus constitute an additional hindrance to the development of these areas. However, the infrastructure of roads could change the situation considerably by reducing these costs. Risk aversion also implies that people in general would prefer the more stable and humid regions rather than a desert. Modern times have created an increasing demand for recreation and the unpopulated desert areas can serve as a source of supply for that need. Congestion is a major incentive for migration to peripheral regions, and thus an economic basis is created in regions closer to the desert. Caution should however; be taken in transferring polluting industries to the Negev, as desert conditions could magnify the problem of pollution decay. The development of the Negev has been among the goals of all governements in Israel, and its justification was based on defence population dispersion and economic potential.
