Urban Sprawl. Urban sprawl: Europe : Urban land increased 2.7 times as fast as urban population. Variation in density across US cities

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1 Urban Sprawl : Urban land increased 2.7 times as fast as urban population Variation in density across US cities NYC (40 people per hectare), LA (21), Phoenix (18) Chicago (15), Boston (14) Higher density in western cities: Higher land prices 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-2 Urban sprawl: Europe 75% of the European population live in urban areas. by 2020, 80% of Europeans will be living in urban areas. Agricultural land uses and their functions in the countryside have consequently evolved. Coasts are being urbanized at an accelerating rate. As a result, our coasts are more dependent on tourism and secondary homes The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-4

2 Urban sprawl- definition Physical pattern of low- density expansion of large urban areas. Mainly intro the surrounding agricultural areas. Implies little planning control of land subdivision: Sprawling cities are full of empty spaces that indicate the inefficiencies in development. The Causes of Sprawl Lower commuting cost and higher income Culture: Higher density among Asians and immigrants Government policies Congestion: Underpricing of commuting encourages long commutes Mortgage subsidy increases housing consumption Underpricing of fringe infrastructure Zoning: Minimum lot sizes to exclude high-density housing 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-6 Glaeser and Kahn Study Automobile & truck: Eliminated orientation toward central infrastructure (streetcar hub, port, rail terminal) Sprawl is ubiquitous, despite differences in income Subsidies for housing and highways: Too small to matter? EU vs. US. Policies and Sprawl Higher cost of personal transportation: gas tax and auto sales tax Promote small neighborhood shops that facilitate high-density living Expensive electricity and freezers? Restrictions on location and prices of large retailers Agriculture subsidies allow fringe farmers to outbid urban uses Transportation infrastructure favors mass transit 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-8

3 Sprawl and Transit Ridership Support intermediate bus service: 31 people per hectare (NY & Honolulu) 60% of Barcelona residents live within 600 meters of transit station 4% of Atlanta residents live within 800 meters of transit station Why sprawl matters? Classically, urban sprawl is a US phenomenon, stemming back to the early part of the 20th century. Fuelled by the use of private car and preference for detached houses. In Europe, cities have traditionally been much more compact, developing a dense historical core before modern transport system. Urban sprawl is now a common phenomenon throughout Europe The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-10 Why are cities sprawling? Desire to realize new lifestyles in suburban environments. Improved transportation links and enhanced personal mobility. Unplanned, decentralized development. The European picture Historically cities growth was linked to increasing population. Now other powerful factors drive the development of the modern city: individual housing preferences, increased mobility, commercial investment decisions, and the coherence and effectiveness of land use policies at all levels The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-12

4 The European picture The most visible impacts are in countries or regions with: High population density and economic activity (Belgium, the Netherlands, southern and western Germany, northern Italy, the Paris region) Rapid economic growth (Ireland, Portugal, eastern Germany, the Madrid region). Region that have benefited from EU regional policies. New development along transportation corridors, and parts of the coast usually connected to river valleys. Since the mid-1950s, European cities have expanded 78%, whereas the population has grown by only 33% The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-16

5 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-18 Regional clusters of sprawling and compact cities Throughout Europe urban areas have expanded considerably more rapidly than the growth of population during the post-war decades. There is no apparent slowing down in these trends. Particularly at risk are the urban areas of the southern, eastern and central parts of Europe, historically compact, but which in the past few decades have started to grow rapidly outwards The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-20

6 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-22 Clusters of drivers This factor is particularly important in the Pentagon zone. Trend for agricultural land: Low value of agricultural land, future use not taken into account expropriation The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-24

7 Drivers of Urban Sprawl Macro- economic factors Macro-economic factors Economic growth Globalisation European integration Micro-economic factors Rising living standards Price of land Availability of cheap agricultural land Competition between municipalities Demographic factors Population growth Increase in household formation Housing preferences More space per person Housing preferences Inner city problems Poor air quality Noise Small apartments Unsafeenvironments Social problems Lack of green open space Poor quality of schools Transportation Private car ownership Availability of roads Low cost of fuel Poor public transport Regulatory frameworks Weak land use planning Poor enforcement of existing plans Lack of horizontal and vertical coordination and Global economic growth and globalization. EU Structural and Cohesion Funds can either drive sprawl or support its containment. New highways attracts new development along the line of the improved transport links, exacerbating urban sprawl. Redevelopment of deteriorating inner cities assisting in the development of more compact cities The McGraw-Hill Companies, All Rights Reserved collaboratio The McGraw-Hill Companies, All Rights Reserved 7-26 Macro- economic factors Economies of scale in the distribution and consumption of goods have driven changes in the retail sector. In the 1950s, the population did their shopping on foot. Today, out-of-town shopping centers are the dominant form of retail. New suburban development without public transportation increases the demand for private car use. New light rail systems Increase housing densities around access points The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-28

8 Macro- economic factors Households make choices taking into account the price od housing and the price of commuting. When income reaches a certain level the rate of sprawl quickens Sprawl is more common in regions where incomes are high and commuting costs are low. Micro-economic factors Price of agricultural land is universally much lower than the price of land zoned for housing or services. Although planning permission for non-agricultural development increases the value of agricultural land, its price still remains at much lower levels. Countries have the responsibility for land use zoning. Municipalities are tempted to relax controls on the development of agricultural land. This Competition between municipalities fuels urban sprawl The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-30 Social factors Natural resources and energy Families with small children move to suburban areas. Elderly and single are last likely to more out of cities. People in Europe see a new house as the prime investment. Properties on the peripheries are considered better investments and the value of property is expected to rise more rapidly. City cores are perceived as more polluted, noisy and unsafe, and with unemployment, poverty, single parent households, drug abuse an minorities with integration problems. The quality of schools plays crucial role The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-32

9 Natural and protected areas Disruption of migration corridors for wildlife species. Rural environments Growth in recent years in mainly on former agricultural land. Developments impact on coastal ecosystems Mediterranean coast: increased demand for water for urban use. Transport infrastructures facilitate commuting to mountain regions. Day tourism from the big cities, also adds to the exploitation The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-34 Socio-economic impacts Urban sprawl is at the very least a more costly from of urban development: Spending on commuting Cost of the congestion Costs of the extension of urban infrastructures. Market orientated land use often result in the abandonment of former industrial areas. In Spain about 50% of sites contaminated from past industrial activities are located in urban areas. Combat against urban sprawl Policies at all levels ( local, national and European) need to have an urban dimension to tackle urban sprawl to redress the market failures. EU Cohesion Policy may articulate a better coordination of land use policies and Structural and Cohesion Funds investments between urban area, rural areas, and the regions that can effectively manage urban sprawl. The EU can directly assist in the transfer of good practice experience of the management of urban sprawl from one city to another and the dissemination of policy solutions that have proven effective The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-36

10 Policy Responses to Sprawl? If distortions eliminated, would density change by a little or a lot? If anti-sprawl policies increase density, what are the benefits and costs? Economics of Skyscrapers Marginal principle: Increase height as long as MB > MC Profit-maximizing height: MB = MC What happens when developers try to build the tallest? 2009 The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-38 The Tallest-Building Game Profit from losing contest = $900 (50-floor building) To win contest, firm 1 must make 2's profit from winning < 900 Firm 1 chooses 51: Firm 2 = 52; profit just below $1100 Firm 1 chooses 80: If Firm 2 = 81; profit < $900 Firm 1 chooses 80: Firm 2 = 50; profit = $ The McGraw-Hill Companies, All Rights Reserved The McGraw-Hill Companies, All Rights Reserved 7-40

11 Implications of Skyscraper Game Large gap between tallest and second tallest; observed in real cities Wasteful competition dissipates profit Total profit with {51, 50} approximately $2,000=$900 + $200 + $900 Total profit with {80, 50} equal to $1800 = $700 + $200 + $ The McGraw-Hill Companies, All Rights Reserved 7-41