Urban Planning and Climate Change: OECD s perspective Tadashi Matsumoto, Ph. D. Coordinator, National Urban Policy, Climate Change and Green Growth Cities, Urban Policies and Sustainable Development, OECD Presentation at CITIES IN THE AGE OF CLIMATE CHANGE 28 November 2017, Vienna, Austria
Introducing the OECD
Main lines of urban work at OECD Reviews of metro-regions and national urban policy to identify opportunities to address competitiveness, sustainability and governance challenges (China and Mexico, 2015; Vietnam, 2018) Horizontal analyses targeting, for example, urban competitiveness, climate change, port cities and green growth in cities (Governing the cities, 2015; The Metropolitan Century, 2015) Policy dialogue on urban issues to facilitate knowledge exchange and best practices to inform policymakers agendas (Roundtable of Mayors and Ministers) Statistical indicators on urban and metro-regions the fundamental tools for enhancing cross-country comparison and improving policy evaluation 3
OECD reviews on urban issues National Urban Policy Reviews Assess the role of central government in both explicit and implicit urban policies as seen through multiple lenses, including economic, social and environmental perspectives Poland, Korea, Chile, Mexico, China, Kazakhstan Metropolitan Reviews Applied its method for territorial reviews in over 25 cities and metropolitan regions, including, Valle de México (Mexico), Rotterdam-The Hague (The Netherlands), Chicago (USA), Toronto (Canada), Venice (Italy), Gauteng (South Africa), Guangdong (China).
The OECD regional/metropolitan database The RDB & MDB includes statistics on: Demographic, regional accounts, labour, innovation Social and environmental indicators Well-being/Quality of life To facilitate comparability : Regions classified in 2 Territorial Levels (TLs): TL2 Territorial Level 2 (337 regions) TL3 Territorial Level 3 (1708 regions) Classified by regional type : (PU, I, PR) (PRC, PRR) Cities classified as Functional Urban Areas (FUA) Database can be directly accessed from the OECD Statistical portal: http://stats.oecd.org OECD MDB: www.oecd.org/gov/regional/statisticsindicators How s life in your region: www.oecd.org/regional/how-is-life-in-your-region.htm
A BROAD PICTURE: CITIES ARE KEY TO ACHIEVING PRODUCTIVE ECONOMY, INCLUSIVE SOCIETY AND ENVIRONMENTAL SUSTAINABILITY
Better Policies for Better Lives: Productive Economies, Inclusive Societies Global Financial Crisis Economic Efficiency Well-being How live Productivity Inequality Cities Environment Sustainability Social Equity
Labour Productivity Growth G7 Productivity paradox: technology skills integration (GVC)
City productivity increases with city size even after controlling for sorting Productivit y increases by 2-5% for a doubling in population size 9
Belgium Canada Israel Japan Australia Switzerland Germany Mexico Spain Netherlands OECD9 (federal) France OECD34 Korea Italy OECD25 (unitary) Austria EU28 United States Ireland Finland Czech Republic Poland Iceland New-Zealand Portugal Norway Denmark Slovenia Sweden Luxembourg Hungary Turkey United Kingdom Estonia Slovak Republic Greece Chile Subnational governments are dominant in total public investment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Subnational direct investment as a % of public direct investment (2013) Subnational government Central government and social security 60%59% 56%55% 10
Making Cities Work for All : Cities tend to be more unequal than countries Gini coefficient of household disposable income, 2014 Source: Boulant, J., M. Brezzi and P. Veneri (2016), "Income Levels And Inequality in Metropolitan Areas: A Comparative Approach in OECD Countries", OECD Regional Development Working Papers, No. 2016/06, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/5jlwj02zz4mr-en
Convergence of countries vs. divergence of regions in the OECD Source: Bartolini, D., S. Stossberg and H. Blöchliger (2016), "Fiscal Decentralisation and Regional Disparities", OECD Economics Department Working Papers, No. 1330, http://dx.doi.org/10.1787/5jlpq7v3j237-en. GDP per capita dispersion is now greater within countries than between countries
POLICY RESPONSES: HOW CAN URBAN POLICIES ADDRESS CLIMATE CHANGE? 13
Contributing to all dimensions of urban sustainability Identifying and promoting links between economic, environmental and social goals is both possible and critical to building cities that work. Sustainable development requires a search for policy complementarities Efficiency Equity Environmental sustainability Economic policies Sustained growth Economic reforms may increase equity Green growth policies can improve sustainability Social policies Social cohesion can increase efficiency (e.g., trust, security, knowledge) Social cohesion Inequality can be reduced without environmental harm (e.g., replace fuel subsidies with transfers) Environmental policies Green growth policies can boost innovation and efficient resource use Environmental degradation tends to hit disadvantaged groups more Environmental sustainability 14
Urban green growth Fostering economic growth and development through urban activities that reduce negative environmental externalities and the impact on natural resources and environmental services Green : urban activities (public and private) that reduce negative environmental impact (land-use, transport, buildings, energy, waste, and water) Growth : GDP growth primarily, but also urban quality of life
Urban green growth studies: Key messages Key local benefits of urban green growth: Green jobs (e.g. building energy retrofits) Urban attractiveness, through investment in public transport, etc. Competitive industry specialisation Land value increase through redevelopment Generating synergies across sectors is crucial (waste-to-energy, etc.) Land use as an anchor to other sectors Aligning financial incentives with green growth priorities Underlined importance of drivers of (green) growth: human capital, innovation and urban infrastructure
Compact City studies: Key messages Compact cities can not only be environmentally sustainable, but also economically viable and socially equitable. Investing in housing and public transport is crucial, in order to reduce negative impacts of compact cities and ensure equitable access to housing, services and jobs. Promoting compact city policies at the metropolitan scale is crucial.
Compact city policies: a comparative assessment (2012) Compact city policies can generate synergistic 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
Effects of compact urban form (2017): based on 400+ interdisciplinary studies Per capita costs/benefits of 10% increase in density (in US$ equivalent) $200 $150 $100 $50 $ -$50 -$100 -$150 -$200 -$250 -$300 Owner Renter External effects
Density in urban land Athens Naples Barcelona Madrid Turin Paris Rome Milan London Lisbon Birmingham Manchester Stuttgart Berlin Amsterdam Warsaw Cologne Katowice Munich Frankfurt Marseilles Hamburg Lyon Prague Vienna Copenhagen Stockholm Brussels Density in urban land based on LandScan (pop/ km²) Density in total land based on LandScan (pop/ km²) 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000
Vienna & Amsterdam Vienna (2.7 million, 8 545 km2 total, 1 110 km2 urban) Amsterdam (2.4 million, 2 198 km 2 total, 577 km 2 urban)
Vienna & Vancouver Vienna (2.7 million, 8 545 km2 total, 1 110 km2 urban) Vancouver (2.2 million, 5 583 km 2 total, 440 km 2 urban)
Densification at the metropolitan scale
Retrofitting built-up areas (densification + housing affordability) Source: City of Vancouver (2013), Laneway housing how-to guide, vancouver.ca/files/cov/laneway-housing-howto-guide.pdf;
Retrofitting built-up areas (conversion + housing redevelopment) Source: Transforming Australia s Cities to Meet the Challenges of Climate Change, Prof. Rob Adams AM, Director design and urban environment city of Melbourne; http://www.abp.unimelb.edu.au/files/miabp/rob-adams.pdf
Retrofitting built-up areas (storm water + heat islands + perceived density) Source: City of Portland
City productivity & administrative fragmentation Productivity falls by 6% for a doubling in number of municipalitie s 27
28 Administrative boundaries are not the answer
THANK YOU www.oecd.org/greencities tadashi.matsumoto@oecd.org