The concept of arcology was first introduced to me in Simcity 2000 back in 1994. The basics of arcology are to build an entire mini-city within a single large super-structure that is self-contained and largely self-sufficient as far as utilities such as power and water supply are concerned. At the time the idea seemed farfetched, but as technologies advance, such as hydroponics gardening, translucent solar panels, more advanced environmental control systems, etc... Another bigger idea behind it that drives the sustainability of such a thing though is also recycling, which is made even easier now with the advent of 3D-printing, not to mention the vast improvements in paper product recycling. This means that once an arcology is built, it no longer has any negative impact on the rest of the world around it, because it is all about renewability instead of increased consumption.
The idea is becoming more and more feasible every day. Abu Dhabi in the United Arab Emirates is already experimenting with arcology skyscrapers, and according to Wikipedia, "Arcosanti is an experimental town under construction in central Arizona. Designed by Paolo Soleri, its primary purpose is to demonstrate principles of arcology." Those principles and technologies are what are being developed by the Russians who declared plans to build a base on Luna (a.k.a. the Moon) two years ago as well as private companies like SpaceX, who are dreaming even further out with possibilities of Mars colonies within this century. Other examples of space-faring arcologies are seen everywhere in sci-fi already from some of the starships in Star Trek to the citadel space station in Mass Effect, Pixar's Wall-E, and even Power Rangers: Lost Galaxy.
Currently the biggest questions remain: How cost efficient is such technology right now, to the point where there would be an economic return on investment? Is the technology itself ready for full arcological experiments?
For more info, here's an interesting interview with the man who coined the term "arcology":
http://www.nbm.org/about-us/publications/blueprints/lessons-in-arcology.html
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