green growth and cities: towards a new generation of
TRANSCRIPT
Microsoft PowerPoint - Keynote Kamal-Chaoui.ppt [Compatibility
Mode]of sustainable urban development policies
Lamia Kamal-Chaoui
2010
OverviewOverviewOverviewOverview
OECD Roundtable of Mayors and Ministers on Urban Strategy
OECD Working Party on Territorial Development
OECD TERRITORIAL STATISTICS
OECD Regional Database
OECD Metropolitan Database (A unique international database on 90 OECD
metro with a common definition of functional areas)
Regional typology:
Europe TL3
Tokyo Seoul
regID regname TL type unit 1990 1991 1992 1993 2
Regional typology: North America TL3
Predominantly urban regions Intermediate regions Predominantly rural regions
Source: OECD Territorial Database
Predominantly rural regions
Stuttgart Baltimore
7.3 7.4 7.4 7.5
19.2 19.4 19.6 19.6
1.7 1.7 1.8 1.8
1.5 1.5 1.5 1.5
0.6 0.6 0.7 0.7
6.7 6.8 6.8 6.9
0.1 0.1 0.1 0.1
115.8 118.7 120.9 122.8
68.4 68.8 69.3 69.6
76.3 77.1 78.0 78.6
3611.5 3647.5 3689.4 3722.0
57.3 57.7 58.2 58.6
71.4 71.7 72.0 72.3
108.8 110.2 111.7 112.7
66.6 67.8 69.0 70.1
49.1 49.7 50.3 50.8
125.5 127.6 129.2 130.2
5962.8 5921.9 5891.0 5884.1
425.8 427.9 430.0 431.9
193.0 194.0 195.0 195.8
Population
P e r C a p it a G D P i n P P P s ( U S D )
Efficiency
A stronger, cleaner, and fairer economy : a new paradigm for the Global Economy
Three “E”s paradigm
functional areas
AUCKLAND
DUBLIN
LYON
OSLO
HELSINKI
PORTLAND
CLEVELAND
LEEDS
KRAKOW
STOCKHOLM
VANCOUVER
VIENNA
TURIN
DENVER
ZURICH
PRAGUE
VALENCIA
COPENHAGEN
PITTSBURGH
DEAGU
PUEBLA
MANCHESTER
LILLE
78 metro-regions with more than 1.5 million inhabitants
functional areas
Cities/Metro-regions matter to efficiency objectives
•Cities are key engines of national economies. Most of the largest OECD metro-regions have a higher GDP per capita than their national average, a higher labour productivity level, and many of them tend to have faster growth rates than their countries.
•Agglomeration economies. The concentration of jobs and firms can be beneficial: pooled labour markets, backward and forward linkages among firms, and knowledge spill-overs can lead to higher productivity growth.
Higher GDP per capita…Higher Productivity…
-50% 0% 50% 100% 150%
ROME
ATHENS
HOUSTON
ZURICH
WASHINGTON
VALENCIA
TURIN
KRAKOW
BUDAPEST
BARCELONA
MINNEAPOLIS
5 )
Urban population and growth (1995-2005) according to population size of PUs
Over 1995-2005, the largest population increases took place in cities with 1.5 million + inhabitants
GDP and GDP growth according to city size (1995-2005)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
(1995-2005)
The Urban Paradox
Growth and Unemployment
• Persistence of high pockets of unemployment
• Lower activity rates in urban regions (44.3%) than intermediate (49.7%) and rural (44.5%)
Wealth and Poverty -6%
their national averages
Wealth and Poverty
• High level of poverty in all types of metro-regions (e.g. about 50% in Mexico City, 22% in Rotterdam, 15% in Paris)
• Spatial polarisation (in 10 OECD countries, up to 10% of the population live in distressed areas)
• Exclusion of immigrants
B e rl in
L o n d o n
D e tr o it
B ir m in g h a m
M o n tr e a l
O s a k a
F u k u o k a
L is b o n
D a e g u
S e o u l
P itt s b u rg h
C le v e la n d
R h in e -R u h r
B ru s s e ls
H o u s to n
C h ic a g o
T o k y o
S t. L o u is
O s lo
A u c k la n d
M e lb o u rn e
R a n d s ta d -H o lla n d
L e e d s
V a le n c ia
H a m b u rg
P o rt la n d
D e n v e r
T o ro n to
B u s a n
M a n c h e s te r
P a ri s
C o p e n h a g u e n
O E C D A v e ra g e
N e w Y o rk
D u b lin
L y o n
R o m e
D a lla s
A tla n ta
S to c k h o lm
A ic h i
B o s to n
P h ila d e lp h ia
S e a tt le
P h o e n ix
S a n F ra n c is c o
M in n e a p o lis
B a lti m o re
A th e n s
V a n c o u v e r
B u d a p e s t
S a n D ie g o
T u ri n
F ra n k fu rt
M ia m i
T a m p a B a y
W a s h in g to n
K ra k o w
S tu tt g a rt
P ra g u e
M ila n
0
1
1
2
2
3
3
4
4
K o re a
U n ite d K in g d o m
F ra n c e
O E C D A v e ra g e
D e n m a rk
J a p a n
S w itz e rl a n d
N e th e rl a n d s
A u s tr ia
It a ly
S p a in
P o la n d
H u n g a ry
A u s tr a lia
G re e c e
C ri m e a g a in s t p e rs o n s ( c o u n tr y a v g = 1 )
Predominantly Urban Intermediate predominantly Rural
Criminality (30% higher in urban regions)
Cities/Metro-regions matter to equity objectives
In many cases intra- regional disparities are widest in large metro- regions in the OECD.
Australia United States 20
Urbanisation (PU) and Carbon Emissions (CO2)
Cities are responsible for 2/3 CO2 emissions (IEA World Energy Outlook 2008)
Higher level of urbanisation are correspond to higher levels of CO2 emissions
Cities/Metro-regions matter to environmental objectives
Austria
Belgium
Denmark
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
pe r c
Urban share of total population (2005)
Urban density emerges as a crucial element to reduce carbon emissions
Norway 25000
United States 6000
Cities/Metro-regions matter to environmental objectives
Australia
P e
Australia
p e
r c
a p
it a
Urbanisation, Density and Carbon Emissions
10
12
14
16
18
20
Slovak
Republic
Finland
Cities & Environmental Objectives
For a given urbanisation level, CO2 emissions tend to decrease as density
increases
11.2%
16.8%
23.2%
28.5%
41.3%
44.7%
47.2%
53.7%
Expansion of urban land use since 1950 has
doubled in OECD countries and increased by five
times in the rest of the world
In 66 of the 78 OECD metro-regions, surburban
belt grows faster than the core
Trends in urban land expansion in the world and the OECD Chicago
Budapest
Portland
Baltimore
Detroit
Cities/Metro-regions matter to environmental objectives
0
100,000
200,000
300,000
400,000
500,000
600,000
-2% -1% 0% 1% 2% 3% 4% 5%
Pittsburgh
Birmingham
Rhine-Ruhr
Berlin
Leeds
Aichi
Krakow
Frankfurt
Helsinki
Osaka
Warsaw
Prague
Brussels
London
Copenhagen
Tokyo
Stockholm
Hanburg
Paris
Cleveland
Munich
Zurich
Philadelphia
Busan
Milan
Oslo
Vienna
Why do cities matter to climate change?
Urban Land Use in Shanghai: 1988 (black) and 2002 (red and black)
Efficiency
Synergies
0.02%
0.03%
0.04%
0.05%
Combined Environmental + Urban policies
DS/BS TS/BS
Simulations carried out with the Urban module of the IMACLIM
model (Grazi et al. 2010)
Exploring synergies/complementarities Example: why environment is good for growth
Atlanta
Boston
Chicago
Dallas
Detroit
O E
C D
a v
e ra
g e
OECD average
Today, a group of highly attractive metro-regions are associated with high levels of
carbon emissions
Krakow
Attractiveness index (2002)
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
-140 -120 -100 -80 -60 -40 -20 0 20 40 60 80
A v
e ra
g e
g ro
w th
r a
te o
f lo
ca l
p o
ll u
ti o
O E
C D
a v
e ra
g e
But, results from the CGE model: by 2030, metro-
regions will loose attractiveness if they continue to pollute
Changes in Attractiveness and Local Pollution Emissions across Metro-regions
Urban strategy for green growth should be based on:
1.Effectiveness at curbing emissions, increase resilience to climate change, reduce pollution and resource
Eg: Green Growth for a new generation of sustainable urban policies
and resource
3.Fiscal sustainability
2/ Seeking complementarities
Implications for a new urban policy paradigm
•Conditions for successful compact city and densification policies include typically mixed land uses, mass transit services and urban amenities
3/ Capacity to act depends on governance models
•Strategic planning can ensure complementarities •Urban finance needs to be streamlined (access to revenues, but also review of side effects) •Vertical coordination is key (national governments have a key role to foster inter- municipal collaboration, provide incentives and sanctions)
2High impact
Medium impact
Among Sectors….
Land-Use Zoning
e.g. in transport (In London,
congestion charge + bus services improvements)
GREENING LOCAL FINANCE
Optimising the opportunities for local finance, including “greening” city revenue sources
National and sub-national expenditures on environmental protection
in OECD countries (2005) Cities bear a substantial share of expenditures related to climate change, e.g. environmental protection
Reform of fees and charges to discourage driving
Fuel and parking taxes
Reform of property taxes and development fees to discourage sprawl
Development fees to internalise cost of extending public services
Taxes such as split-rate property taxes that encourage development of urban land
Incentives and removing barriers for brownfields redevelopment.
Revenue sources are not neutral (eg: property tax in Toronto, land sales in Chinese cities favour sprawl)
What about non OECD Cities?
A New Geography of Growth: The Four-speed World, 1990s
Source: OECD Development Centre, Perspectives on Global Development 2010 Shifting Wealth
A New Geography of Growth: The Four-speed World, 2000s
Source: OECD Development Centre, Perspectives on Global Development 2010 Shifting Wealth
The Example of Guangdong, China
The The The The SouthernSouthernSouthernSouthern Gateway Gateway Gateway Gateway of Chinaof Chinaof Chinaof China
The “Manufacturing hub of the World” The “Manufacturing hub of the World” The “Manufacturing hub of the World” The “Manufacturing hub of the World” –––– the the the the Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD)
95.4 million Inhabitants The highest output in China (12% of national GDP vs. 8% of total population) and the highest output growth in the country since 1980 (average of 13.7% vs. 10% Industrialised economy specialised in light industries ( textile, toys, footwear and simple electronics), increase in the share of ICT and heavy industry The largest exporting province (28.3% of total export in 2008) and main receiver of FDI in China (25% of total FDI over 1978-2008)
Slowdown in productivity growth Challenged by low value added economies (inside China, and Vietnam, India, Bangladesh) due to rising costs (land and labour) Challenged by a high value added regional economy (the Yangtze River Delta) Severly affected by the crisis (widespread factory closures and massive job losses (e.g. 590,000 migrant workers in 2008) Territorial Disparities among the highest in Chinese provinces and increasing urban rural disparities
98
108
119
127
137
145
146
174
178
206
219
235
286
Shanghai
Hunan
Hubei
tripled over 1997-2007 and doubled since 2000)
has led to an energy shortage
High GHG emissions (coal and crude oil
account for 76% of energy source) - mainly from
industrial production but also from inefficient
buildings and modes of transportation, as well as
urban sprawl (built-up land area in the PRD
grew by over 300% over 1990-2000)
Water issues (35.1% of river segments are
polluted) and air pollution (48.5% rain in cities
were acid precipitation in 2008)
Trends in Energy Consumption, 2000-2007
10
21
30
49
51
51
52
61
63
66
66
72
73
76
77
78
94
Hainan
Qinghai
Ningxia
Tianjin
Jiangxi
Gansu
Chongqing
Guangxi
Beijing
Xinjiang
Shaanxi
Yunnan
Jilin
Fujian
Guizhou
Anhui
Heilongjiang
2007 2000
Vulnerability to climate change, low-lying areas
of the PRD (risk of flooding)
Change in Built-up Land in Pearl River Delta 1990 (black); in 2000 (blue)
Some Policy Recommendations
Develop climate change adaptation strategies and
integrate environmental objectives in the regional
economic development strategy (Green PRD)
Provide incentives for inter-municipal coordination
at the local level (e.g. grants for inter-municipal
responses, or pre-conditions for infrastructure responses, or pre-conditions for infrastructure
financing)
between inter-city competition and co-operation )
Deepen regional coordination in the Greater PRD
that includes Hong Kong and Macao
Fully implement evaluations of lower-level officials
based on environmental performance
with spatial development issues (e.g. urban growth
boundaries, and density targets)
The Cape Town City-Region
11.8 % of National GDP
The richest region of the country after Johannesburg
High unemployment (22%, taking in 2006) Persistence of townships, housing deficit (410 000 units) and informal housing (31% of total units)
GDP per capita 2006
S o u th
A fr ic a
was USD 15 250
poverty (trend between 1999-2005)
city-region
1200
1400
Population densities (y) and distances from city centre (x) in the Cape Town city-region in 2008 Commuting distances comparable to Los Angeles
0
200
400
600
800
1000
Po pu
si ty (p
Commuting distances comparable to Los Angeles
Issues affecting regional competitiveness
• 5.22% of workers with tertiary education (0.004% in RSA)
• Spatial mismatch between housing and location of jobs
Backlogs in capital infrastructure maintenance
Innovation capacity
Backlogs in capital infrastructure maintenance
• USD 380 million in 2006 (road infrastructure: roads, bridges, and culverts – some 2% of regional GDP).
• Power-cuts
• Rising contamination of water and land
• most affected by global warming
• Impacts agro-food & tourism value chains
Competing through social inclusion
Regional competitiveness
Innovation capacity (Regional innovation system)
Creative
industries
Environmental sustainability (“climate proof” Cape Town)
Specific policies for economic development in townships
Greening public investment and purchasing – in infrastructure, building, transport, communication networks and utilities. New neighborhoods provide an opportunity to incorporate these technologies early enough for them to be cost-effective, including through public private partnership. City decision makers can also reduce future energy consumption and reduce the potential for urban fragmentation and social isolation by orienting new developments and redevelopment projects around transportation hubs.
Supporting greener local industries by improving the eco-efficiency of production, easing the way for green start-ups and training local workers.
Applying green growth in fast-growing cities in developing countries.
for green start-ups and training local workers. To attract higher-value added industries, it can be cost-effective to create incentives or impose regulations for reducing air and water pollution from existing industries (Shenzhen and Guangzhou provided examples of these incentive programmes (and stricter regulations).
Raising consumer awareness through consumer education and lowering the cost of green technology purchases. City authorities have the ability to enable private-sector partnerships that can lower energy costs for residents while creating jobs with energy system companies (ESCOs)
Catalysing research and the development of the green-tech clusters that will become the engines of cities’ green economic growth over the long term. Research clusters need not be high-tech. By taking advantage of nearby natural resources that can be used for renewables (e.g. solar, wind, hydropower and biofuels, cities can attract green technology firms with opportunities for low and high-skilled jobs.
Thank you! Thank you!
Lamia Kamal-Chaoui
2010
OverviewOverviewOverviewOverview
OECD Roundtable of Mayors and Ministers on Urban Strategy
OECD Working Party on Territorial Development
OECD TERRITORIAL STATISTICS
OECD Regional Database
OECD Metropolitan Database (A unique international database on 90 OECD
metro with a common definition of functional areas)
Regional typology:
Europe TL3
Tokyo Seoul
regID regname TL type unit 1990 1991 1992 1993 2
Regional typology: North America TL3
Predominantly urban regions Intermediate regions Predominantly rural regions
Source: OECD Territorial Database
Predominantly rural regions
Stuttgart Baltimore
7.3 7.4 7.4 7.5
19.2 19.4 19.6 19.6
1.7 1.7 1.8 1.8
1.5 1.5 1.5 1.5
0.6 0.6 0.7 0.7
6.7 6.8 6.8 6.9
0.1 0.1 0.1 0.1
115.8 118.7 120.9 122.8
68.4 68.8 69.3 69.6
76.3 77.1 78.0 78.6
3611.5 3647.5 3689.4 3722.0
57.3 57.7 58.2 58.6
71.4 71.7 72.0 72.3
108.8 110.2 111.7 112.7
66.6 67.8 69.0 70.1
49.1 49.7 50.3 50.8
125.5 127.6 129.2 130.2
5962.8 5921.9 5891.0 5884.1
425.8 427.9 430.0 431.9
193.0 194.0 195.0 195.8
Population
P e r C a p it a G D P i n P P P s ( U S D )
Efficiency
A stronger, cleaner, and fairer economy : a new paradigm for the Global Economy
Three “E”s paradigm
functional areas
AUCKLAND
DUBLIN
LYON
OSLO
HELSINKI
PORTLAND
CLEVELAND
LEEDS
KRAKOW
STOCKHOLM
VANCOUVER
VIENNA
TURIN
DENVER
ZURICH
PRAGUE
VALENCIA
COPENHAGEN
PITTSBURGH
DEAGU
PUEBLA
MANCHESTER
LILLE
78 metro-regions with more than 1.5 million inhabitants
functional areas
Cities/Metro-regions matter to efficiency objectives
•Cities are key engines of national economies. Most of the largest OECD metro-regions have a higher GDP per capita than their national average, a higher labour productivity level, and many of them tend to have faster growth rates than their countries.
•Agglomeration economies. The concentration of jobs and firms can be beneficial: pooled labour markets, backward and forward linkages among firms, and knowledge spill-overs can lead to higher productivity growth.
Higher GDP per capita…Higher Productivity…
-50% 0% 50% 100% 150%
ROME
ATHENS
HOUSTON
ZURICH
WASHINGTON
VALENCIA
TURIN
KRAKOW
BUDAPEST
BARCELONA
MINNEAPOLIS
5 )
Urban population and growth (1995-2005) according to population size of PUs
Over 1995-2005, the largest population increases took place in cities with 1.5 million + inhabitants
GDP and GDP growth according to city size (1995-2005)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
(1995-2005)
The Urban Paradox
Growth and Unemployment
• Persistence of high pockets of unemployment
• Lower activity rates in urban regions (44.3%) than intermediate (49.7%) and rural (44.5%)
Wealth and Poverty -6%
their national averages
Wealth and Poverty
• High level of poverty in all types of metro-regions (e.g. about 50% in Mexico City, 22% in Rotterdam, 15% in Paris)
• Spatial polarisation (in 10 OECD countries, up to 10% of the population live in distressed areas)
• Exclusion of immigrants
B e rl in
L o n d o n
D e tr o it
B ir m in g h a m
M o n tr e a l
O s a k a
F u k u o k a
L is b o n
D a e g u
S e o u l
P itt s b u rg h
C le v e la n d
R h in e -R u h r
B ru s s e ls
H o u s to n
C h ic a g o
T o k y o
S t. L o u is
O s lo
A u c k la n d
M e lb o u rn e
R a n d s ta d -H o lla n d
L e e d s
V a le n c ia
H a m b u rg
P o rt la n d
D e n v e r
T o ro n to
B u s a n
M a n c h e s te r
P a ri s
C o p e n h a g u e n
O E C D A v e ra g e
N e w Y o rk
D u b lin
L y o n
R o m e
D a lla s
A tla n ta
S to c k h o lm
A ic h i
B o s to n
P h ila d e lp h ia
S e a tt le
P h o e n ix
S a n F ra n c is c o
M in n e a p o lis
B a lti m o re
A th e n s
V a n c o u v e r
B u d a p e s t
S a n D ie g o
T u ri n
F ra n k fu rt
M ia m i
T a m p a B a y
W a s h in g to n
K ra k o w
S tu tt g a rt
P ra g u e
M ila n
0
1
1
2
2
3
3
4
4
K o re a
U n ite d K in g d o m
F ra n c e
O E C D A v e ra g e
D e n m a rk
J a p a n
S w itz e rl a n d
N e th e rl a n d s
A u s tr ia
It a ly
S p a in
P o la n d
H u n g a ry
A u s tr a lia
G re e c e
C ri m e a g a in s t p e rs o n s ( c o u n tr y a v g = 1 )
Predominantly Urban Intermediate predominantly Rural
Criminality (30% higher in urban regions)
Cities/Metro-regions matter to equity objectives
In many cases intra- regional disparities are widest in large metro- regions in the OECD.
Australia United States 20
Urbanisation (PU) and Carbon Emissions (CO2)
Cities are responsible for 2/3 CO2 emissions (IEA World Energy Outlook 2008)
Higher level of urbanisation are correspond to higher levels of CO2 emissions
Cities/Metro-regions matter to environmental objectives
Austria
Belgium
Denmark
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
pe r c
Urban share of total population (2005)
Urban density emerges as a crucial element to reduce carbon emissions
Norway 25000
United States 6000
Cities/Metro-regions matter to environmental objectives
Australia
P e
Australia
p e
r c
a p
it a
Urbanisation, Density and Carbon Emissions
10
12
14
16
18
20
Slovak
Republic
Finland
Cities & Environmental Objectives
For a given urbanisation level, CO2 emissions tend to decrease as density
increases
11.2%
16.8%
23.2%
28.5%
41.3%
44.7%
47.2%
53.7%
Expansion of urban land use since 1950 has
doubled in OECD countries and increased by five
times in the rest of the world
In 66 of the 78 OECD metro-regions, surburban
belt grows faster than the core
Trends in urban land expansion in the world and the OECD Chicago
Budapest
Portland
Baltimore
Detroit
Cities/Metro-regions matter to environmental objectives
0
100,000
200,000
300,000
400,000
500,000
600,000
-2% -1% 0% 1% 2% 3% 4% 5%
Pittsburgh
Birmingham
Rhine-Ruhr
Berlin
Leeds
Aichi
Krakow
Frankfurt
Helsinki
Osaka
Warsaw
Prague
Brussels
London
Copenhagen
Tokyo
Stockholm
Hanburg
Paris
Cleveland
Munich
Zurich
Philadelphia
Busan
Milan
Oslo
Vienna
Why do cities matter to climate change?
Urban Land Use in Shanghai: 1988 (black) and 2002 (red and black)
Efficiency
Synergies
0.02%
0.03%
0.04%
0.05%
Combined Environmental + Urban policies
DS/BS TS/BS
Simulations carried out with the Urban module of the IMACLIM
model (Grazi et al. 2010)
Exploring synergies/complementarities Example: why environment is good for growth
Atlanta
Boston
Chicago
Dallas
Detroit
O E
C D
a v
e ra
g e
OECD average
Today, a group of highly attractive metro-regions are associated with high levels of
carbon emissions
Krakow
Attractiveness index (2002)
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
-140 -120 -100 -80 -60 -40 -20 0 20 40 60 80
A v
e ra
g e
g ro
w th
r a
te o
f lo
ca l
p o
ll u
ti o
O E
C D
a v
e ra
g e
But, results from the CGE model: by 2030, metro-
regions will loose attractiveness if they continue to pollute
Changes in Attractiveness and Local Pollution Emissions across Metro-regions
Urban strategy for green growth should be based on:
1.Effectiveness at curbing emissions, increase resilience to climate change, reduce pollution and resource
Eg: Green Growth for a new generation of sustainable urban policies
and resource
3.Fiscal sustainability
2/ Seeking complementarities
Implications for a new urban policy paradigm
•Conditions for successful compact city and densification policies include typically mixed land uses, mass transit services and urban amenities
3/ Capacity to act depends on governance models
•Strategic planning can ensure complementarities •Urban finance needs to be streamlined (access to revenues, but also review of side effects) •Vertical coordination is key (national governments have a key role to foster inter- municipal collaboration, provide incentives and sanctions)
2High impact
Medium impact
Among Sectors….
Land-Use Zoning
e.g. in transport (In London,
congestion charge + bus services improvements)
GREENING LOCAL FINANCE
Optimising the opportunities for local finance, including “greening” city revenue sources
National and sub-national expenditures on environmental protection
in OECD countries (2005) Cities bear a substantial share of expenditures related to climate change, e.g. environmental protection
Reform of fees and charges to discourage driving
Fuel and parking taxes
Reform of property taxes and development fees to discourage sprawl
Development fees to internalise cost of extending public services
Taxes such as split-rate property taxes that encourage development of urban land
Incentives and removing barriers for brownfields redevelopment.
Revenue sources are not neutral (eg: property tax in Toronto, land sales in Chinese cities favour sprawl)
What about non OECD Cities?
A New Geography of Growth: The Four-speed World, 1990s
Source: OECD Development Centre, Perspectives on Global Development 2010 Shifting Wealth
A New Geography of Growth: The Four-speed World, 2000s
Source: OECD Development Centre, Perspectives on Global Development 2010 Shifting Wealth
The Example of Guangdong, China
The The The The SouthernSouthernSouthernSouthern Gateway Gateway Gateway Gateway of Chinaof Chinaof Chinaof China
The “Manufacturing hub of the World” The “Manufacturing hub of the World” The “Manufacturing hub of the World” The “Manufacturing hub of the World” –––– the the the the Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD) Pearl River Delta area (PRD)
95.4 million Inhabitants The highest output in China (12% of national GDP vs. 8% of total population) and the highest output growth in the country since 1980 (average of 13.7% vs. 10% Industrialised economy specialised in light industries ( textile, toys, footwear and simple electronics), increase in the share of ICT and heavy industry The largest exporting province (28.3% of total export in 2008) and main receiver of FDI in China (25% of total FDI over 1978-2008)
Slowdown in productivity growth Challenged by low value added economies (inside China, and Vietnam, India, Bangladesh) due to rising costs (land and labour) Challenged by a high value added regional economy (the Yangtze River Delta) Severly affected by the crisis (widespread factory closures and massive job losses (e.g. 590,000 migrant workers in 2008) Territorial Disparities among the highest in Chinese provinces and increasing urban rural disparities
98
108
119
127
137
145
146
174
178
206
219
235
286
Shanghai
Hunan
Hubei
tripled over 1997-2007 and doubled since 2000)
has led to an energy shortage
High GHG emissions (coal and crude oil
account for 76% of energy source) - mainly from
industrial production but also from inefficient
buildings and modes of transportation, as well as
urban sprawl (built-up land area in the PRD
grew by over 300% over 1990-2000)
Water issues (35.1% of river segments are
polluted) and air pollution (48.5% rain in cities
were acid precipitation in 2008)
Trends in Energy Consumption, 2000-2007
10
21
30
49
51
51
52
61
63
66
66
72
73
76
77
78
94
Hainan
Qinghai
Ningxia
Tianjin
Jiangxi
Gansu
Chongqing
Guangxi
Beijing
Xinjiang
Shaanxi
Yunnan
Jilin
Fujian
Guizhou
Anhui
Heilongjiang
2007 2000
Vulnerability to climate change, low-lying areas
of the PRD (risk of flooding)
Change in Built-up Land in Pearl River Delta 1990 (black); in 2000 (blue)
Some Policy Recommendations
Develop climate change adaptation strategies and
integrate environmental objectives in the regional
economic development strategy (Green PRD)
Provide incentives for inter-municipal coordination
at the local level (e.g. grants for inter-municipal
responses, or pre-conditions for infrastructure responses, or pre-conditions for infrastructure
financing)
between inter-city competition and co-operation )
Deepen regional coordination in the Greater PRD
that includes Hong Kong and Macao
Fully implement evaluations of lower-level officials
based on environmental performance
with spatial development issues (e.g. urban growth
boundaries, and density targets)
The Cape Town City-Region
11.8 % of National GDP
The richest region of the country after Johannesburg
High unemployment (22%, taking in 2006) Persistence of townships, housing deficit (410 000 units) and informal housing (31% of total units)
GDP per capita 2006
S o u th
A fr ic a
was USD 15 250
poverty (trend between 1999-2005)
city-region
1200
1400
Population densities (y) and distances from city centre (x) in the Cape Town city-region in 2008 Commuting distances comparable to Los Angeles
0
200
400
600
800
1000
Po pu
si ty (p
Commuting distances comparable to Los Angeles
Issues affecting regional competitiveness
• 5.22% of workers with tertiary education (0.004% in RSA)
• Spatial mismatch between housing and location of jobs
Backlogs in capital infrastructure maintenance
Innovation capacity
Backlogs in capital infrastructure maintenance
• USD 380 million in 2006 (road infrastructure: roads, bridges, and culverts – some 2% of regional GDP).
• Power-cuts
• Rising contamination of water and land
• most affected by global warming
• Impacts agro-food & tourism value chains
Competing through social inclusion
Regional competitiveness
Innovation capacity (Regional innovation system)
Creative
industries
Environmental sustainability (“climate proof” Cape Town)
Specific policies for economic development in townships
Greening public investment and purchasing – in infrastructure, building, transport, communication networks and utilities. New neighborhoods provide an opportunity to incorporate these technologies early enough for them to be cost-effective, including through public private partnership. City decision makers can also reduce future energy consumption and reduce the potential for urban fragmentation and social isolation by orienting new developments and redevelopment projects around transportation hubs.
Supporting greener local industries by improving the eco-efficiency of production, easing the way for green start-ups and training local workers.
Applying green growth in fast-growing cities in developing countries.
for green start-ups and training local workers. To attract higher-value added industries, it can be cost-effective to create incentives or impose regulations for reducing air and water pollution from existing industries (Shenzhen and Guangzhou provided examples of these incentive programmes (and stricter regulations).
Raising consumer awareness through consumer education and lowering the cost of green technology purchases. City authorities have the ability to enable private-sector partnerships that can lower energy costs for residents while creating jobs with energy system companies (ESCOs)
Catalysing research and the development of the green-tech clusters that will become the engines of cities’ green economic growth over the long term. Research clusters need not be high-tech. By taking advantage of nearby natural resources that can be used for renewables (e.g. solar, wind, hydropower and biofuels, cities can attract green technology firms with opportunities for low and high-skilled jobs.
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