Compact, green, smart cities

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1 Compact, green, smart cities Marissa Plouin Policy Analyst, Urban Development Programme Regional Development Policy Division, OECD Public Hearing: verso Milano Smart City 19 April 2013 Milan, Italy

2 Today s presentation 1 Urban facts in the OECD 2 Compact, green, smart cities 3 Governance & financing arrangements

3 Urban facts in the OECD

4 World urban popula,on will keep growing, even in OECD countries 7 World urban popula,on 3,5 World popula,on (billions) 6 3,0 5 2,5 4 World rural popula,on 2,0 3 1,5 OECD urban population 2 1,0 1 OECD rural population 0,5 0 0, Total urban and rural population: world and OECD countries Popula,on in OECD countries (billions) Source: Calculations based on UN population database

5 Con,nuing pressures on land- use yearly growth of built-up area (%) 3 2,5 2 1,5 1 0,5 0 Yearly growth of built-up area in metropolitan areas with population growth less than 1% Source: OECD metropolitan database; selected metropolitan areas

6 Lower urban density tends to generate higher per capita CO₂ emissions 30 Köln Europe North America Japan and Korea Cincinnati Kansas City CO2 emissions per capita (2006) Houston Saint Louis Minneapolis San Antonio New York Chicago Philadelphia Detroit Milwaukee Orlando Amsterdam Cleveland San Francisco Wien Denver Washington Los Angeles Montreal Katowice Portland Atlanta San Diego Phoenix Frankfurt am Main Columbus Nagoya Berlin Seattle Stuttgart Marseille Milano Stockholm Sapporo München Tokyo ParisRoma Hamburg Warszawa Madrid Athina Busan Monterrey Mexico City Puebla Guadalajara area per person (km2/pop) (2006)

7 Compact Cities, Green Cities Key Cindings from OECD

8 Compact, green, smart cities Compact cities: characterised by Dense and proximate development patterns Urban areas linked by public transport systems Accessibility to local services and jobs Green cities: providing services necessary to growth and development in a way that reduces environmental impact Smart cities: harnessing technology, including ICT, for efdicient service delivery

9 Compact city policies: Contribu,ons to urban sustainability Compact city policies can generate synergis:c impacts: Compact city characteristics Environmental benefits Social benefits Economic benefits Shorter intraurban distances Fewer CO2 emissions, Less pollution from automobiles Higher mobility of lowincome households, due to lower travel costs Higher productivity due to shorter travel time for workers Better access to diversity of local services and jobs More efficient public service delivery - Higher quality of life due to access to local services (shops, hospitals, etc.) - Public service level for social welfare maintained by improved efficiency Skilled labour force attracted by high quality of life Greater productivity due to more diversity, vitality, innovation and creativity Lower infrastructure investments and cost of maintenance Source: OECD (2012), Compact City Policies: A Comparative Assessment

10 Green city policies: Defining objec,ves and priori,es When the goal is to increase: Jobs Urban attractiveness Regional production of green products/services Urban land values Green growth policies to prioritise are: Energy-efficiency building retrofits Public transport Waste management Increase the efficiency of the transport system Sustainable public service delivery Climate change adaptation Identifying potential for green product and service specialisation Fostering green technology R&D and innovation activities Urban redevelopment, including eco-districts Reducing incentives for greenfield development

11 Governance and.inancing arrangements

12 Financing green ci,es: the Chicago Proposal Ensure policy alignment across levels of government Make existing revenue sources greener Tap new sources of finance

13 THANK YOU 23 May 2013 in Stockholm Launch of OECD Green Growth in Cities For info, please contact

14

15 A lot of policy experimentation in OECD and non- OECD

16 International Best Practices Reducing urban sprawl End the incentives to urban sprawl Property taxes and fees related to urban development can be reformed to incentivise compact development. But the rate structure must truly differentiate between desirable (compact, transit- oriented development) and undesirable (single- family auto- dependent sprawl) outcomes to be effective. Policy solutions Preferential property tax rate for multiple dwellings (Copenhagen; Sweden) Two- rate property tax system (Sydney, Hong Kong, Pittsburg, Denmark, Finland) Special Area Tax Development fees

17 International Best Practices Smarter growth Linking development to transit Siting development around public transit and co- locating housing, industrial, ofdice and retail activities (mixed- use development) can promote public transit, walking and biking by making different urban services and functions more accessible. Policy solutions Mixed- use development Transit- oriented development Sjöstad (Stockholm) Rosslyn- Ballston corridor (Arlington, Virginia) Tokyo Midtown development HafenCity (Hamburg, Germany)

18 International Best Practices Financing public transit Reducing auto use requires attractive public transit alternatives Transportation- related fees and taxes can be used to fund the expansion of the public transit network and help create disincentives for auto use. Policy solutions Value capture tax (Hong Kong, Miami, Milan, Bogota) Congestion charges (Singapore, London, Stockholm, Milan) High- occupancy toll lanes Parking charges and fees

19 Why are ci,es important? Cities play an outsize role in national growth and key environmental impacts Urban policies can lower the abatement costs of national environmental policy targets Cities are key spenders on infrastructure relevant to green growth

20 Urbanisa,on is s,ll important in the OECD Population in OECD urban areas continue to grow Urbanisation interacts strongly with periphery and rural areas Functional analysis of urban areas helps designing urban governance solutions

21 Large ci,es influence neighbouring regions Rate of urbanisation in OECD countries Func:onal urban area Core Hinterland 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% Small urban areas Medium- sized urban areas Metropolitan areas Large metropolitan areas Popula,on growth by city types and core/hinterlands (average yearly growth rates)

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