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Oh aye, but you have to offset it against this only being useful in high population density areas. Which means land costs are extremely high and ongoing, construction costs are high and carry their own carbon costs, and transportation of food over long distances is extremely cheap, especially by sea.
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Land may be expensive right at the city center, but it can be bought cheap in a suburb or some other area of the city.
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We already have the same efficiencies by the way, they're called hydroponics and glasshouses, and cost only a fraction of both the construction, land costs, and energy requirements of this proposal.
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For all practical purposes, this building is just a very tall greenhouse. I don't see how it would be expensive, after all, it's not like it would have the costs associated with an office building or residential high-rise.
Greenhouse farming has been shown to be profitable... why couldn't a multi-story greenhouse be profitable?