[sustran] New Study Estimates the Costs of Sprawl and Benefits of Smart Growth

[Todd Litman]

Media Release: Major new study estimates the costs of sprawl and practical
ways to reduce these costs in developed and developing countries.

 

19 March 2015. Urban sprawl costs the American economy more than US$1
trillion annually, according to a new study by the New Climate Economy. It
estimates that Americans living in sprawled communities bear at least $625
billion in direct incremental costs and impose an extra $400 billion in
external costs on governments, businesses and other households. It
identifies planning and market distortions that foster sprawl, and describes
policy reforms that can help correct these distortions. These smart growth
policies can lead to healthier, safer and wealthier communities in both
developed and developing countries.

 

This report, "Analysis of Public Policies that Unintentionally Encourage and
Subsidize Sprawl" (http://bit.ly/1EvGtIN ), was written by Todd Litman of
the Victoria Transport Policy Institute (http://vtpi.org ), for the New
Climate Economy (http://newclimateeconomy.net ) in partnership with LSE
Cities (http://www.lse.ac.uk/LSECities ). It defines smart growth—the
opposite of urban sprawl—as compact, connected and coordinated urban
development. Smart growth cities and towns have well-defined boundaries, a
range of housing options, a mix of residential and commercial buildings, and
accessible sidewalks, bike lanes and public transportation. Sprawled
development increases per capita land consumption, and increases the
distance between homes, businesses, services and jobs, which raises the cost
of providing public infrastructure and services, and increases
transportation costs. The study estimates that providing public
infrastructure and services costs on average $750 annually per capita in the
most sprawled quintile (fifth) American cities, 50% more than in the least
sprawled quintile cities. This is consistent with previous research
published in the New Climate Economy’s flagship report, "Better Growth,
Better Climate," which estimated smarter urban growth policies could reduce
global infrastructure capital requirements by more than US$3 trillion over
the next 15 years. By reducing per capita land consumption and
infrastructure and transportation costs, smart urban growth policies can
deliver significant economic, social and environmental benefits. 

 

This research also indicates that sprawl is bad for public safety and
health. Americans who live in sprawled neighbourhoods are between two and
five times more likely to be killed in car accidents, are twice as likely to
be overweight as those in more walkable neighbourhoods, and research
described in the report suggest that smart growth reduces per capita crime
rates by increasing "eyes on the street" and economic opportunity for people
at-risk for criminal activity. Residents of compact, connected communities
save more money and have greater economic mobility than they would in more
sprawled, automobile-dependent neighbourhoods. Households in accessible
areas spend on average $5,000 less per year on transportation expenses, and
real estate located in smart growth communities tends to retain its value
better than in sprawled communities, due to greater accessibility to
services. These communities are also more inclusive for people who cannot
drive: they offer easier access to schools, public services and jobs, and
encourage mixed-income communities. Because of these factors, research shows
that lower-income children tend to be much more economically successful if
they grow up in smart growth communities.

 

Explains lead author Todd Litman of the Victoria Transport Policy Institute,
"Smart growth is not anti-suburb. Instead, it ensures that diverse housing
options are available and incentivizes households to choose the most
resource-efficient options that meet their needs. We are now seeing growth
in demand by millennials and the elderly for affordable, compact housing in
accessible and multimodal neighborhoods. However, current government
policies tend to favor larger, less-accessible homes. For example, in most
communities there are strict limits on development densities, restrictions
on multifamily housing and excessive parking requirements, which drive up
housing costs and encourage sprawl. Consumer preferences are changing;
government regulations on housing should too."

 

Smart growth policies can also help reduce global climate change. Urban
sprawl is a significant contributor to greenhouse gas emissions, according
to "Better Growth, Better Climate." Cities are responsible for 70% of global
greenhouse gas emissions.  The adoption of compact, transit-oriented cities
could reduce annual greenhouse gas emissions by about 0.6 billion tonnes of
CO2 equivalent in 2030, rising to 1.8 billion tonnes CO2 equivalent by 2050,
more than twice the annual emissions of Canada.

 

Helen Mountford, Global Programme Director for the New Climate Economy,
said: "Reducing urban sprawl is good for the economy and the climate. For a
real-world example of sprawl versus smart growth, compare Atlanta and
Barcelona. Both cities have approximately the same population and the same
level of wealth per person, but Atlanta takes up over 11 times as much land
and produces six times the transport-related carbon emissions per person as
Barcelona. And congested, sprawling cities are costly to the economy; for
example through all the hours that commuters or delivery trucks waste stuck
in traffic jams. Cities that are compact, connected and coordinated can
unleash productivity and growth opportunities, while minimizing harm to the
climate."

 

All cities can benefit from increased economic productivity, more affordable
housing options, more liveable communities, infrastructure cost savings,
reduced accident risk, improved public fitness and health, increased
opportunity for physically and economically disadvantaged groups and
improved mobility options for non-drivers. These benefits are particularly
important in rapidly developing cities where resources are limited and a
greater portion of households are impoverished and cannot afford
automobiles.

Nick Godfrey, Head of Policy and Urban Development, New Climate Economy,
says, "The New Climate Economy’s new report on urban sprawl proves that
there is both an economic and an environmental case for smart cities.
Smarter growth leads to cities that are greener, more productive and more
prosperous. Developing countries in the early stages of urbanisation can
reduce urban infrastructure and transportation costs by learning from the
mistakes made by developed countries.  Ninety percent of urban growth
between now and 2050 is projected to take place in the developing world. By
avoiding urban sprawl, developing countries can stimulate their economic
growth while avoiding climate risks."

 

For media inquiries contact:

Canada and US: Todd Litman, litman at vtpi.org, 250-360-1560

US: Blair Fitzgibbon,  <mailto:blair at blairfitzgibbon.com>
blair at blairfitzgibbon.com, +12025036141

UK: Alfonso Daniels,  <mailto:tan.copsey at newclimateeconomy.net>
alfonso.daniels at newclimateeconomy.net P +447810311998, M +447437471087

 

About the Global Commission on the Economy and Climate. The Global
Commission on the Economy and Climate was established by seven countries:
Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United
Kingdom, as an independent initiative to examine how countries can achieve
economic growth while dealing with the risks posed by climate change.
Chaired by former Mexican President Felipe Calderón, and co-chaired by
renowned economist Lord Nicholas Stern, the Commission comprises 24 leaders
from 19 countries, including former heads of government and finance
ministers, leading business people, investors, city mayors and economists.
It has been advised by a panel of world-leading economists chaired by Lord
Nicholas Stern that includes two Nobel Laureates. Research for the
Commission has been carried out by a partnership of leading global economic
and policy institutes, including the World Resources Institute (Managing
Partner), the Climate Policy Initiative, the Ethiopian Development Research
Institute, the Global Green Growth Institute, Indian Council for Research on
International Economic Relations, LSE Cities at the London School of
Economics and Political Science, the Stockholm Environment Institute and
Tsinghua University.

 

About the Victoria Transport Policy Institute. The Victoria Transport Policy
Institute (VTPI) is an independent research organization dedicated to
developing innovative solutions to transport problems. Its work helps expand
the range of impacts and options considered in transportation
decision-making, improve evaluation methods, and make specialized technical
concepts accessible to a larger audience. VTPI’s research is used worldwide
in transport planning and policy analysis.

 

 

Also see:

 

"Study: Sprawl Costs the U.S. Economy $1 Trillion Annually" Planetizen
(http://www.planetizen.com/node/74903 ).

 

Kitty Stapp (2015), “In Thrall to the Mall Crawl and Urban Sprawl,” IPS News
(http://www.ipsnews.net/2015/03/in-thrall-to-the-mall-crawl-and-urban-sprawl
)

 

Laura Kusisto (2015), “The Cost of Sprawl: More Than $1 Trillion Per Year,
New Report Says,” Wall Street Journal (http://on.wsj.com/1FFcqCJ ).

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Sincerely,

Todd Litman (litman at vtpi.org)

Victoria Transport Policy Institute (www.vtpi.org)

Office: 250-360-1560 | Mobile: 250-508-5150

1250 Rudlin Street, Victoria, BC, V8V 3R7, CANADA

     Efficiency - Equity - Clarity