Ecological and economic impacts of urban form





Introduction:

Urban growth continues to consume farmland, forests, and wetlands at the urban fringes of most major U.S. cities.  At the same time, many cities and even inner suburbs are experiencing socioeconomic decline.  Growth  at the urban fringe comes with nonmarket economic costs and benefits (known as externalities) that are rarely calculated in land use decision making.  These include costs of new infrastructure, public services, and loss of open space.  Not knowing the full costs and benefits of economic decisions can lead to market failure, a case where markets provide the wrong signals for decision making.  The loss of ecosystem services, in particular, has major impacts on quality of life.

Economic incentives play a key role in development, and can promote unsustainable development patterns or promote sustainable development.  New forms of economic incentives are being developed to encourage compact development that has the benefit of preserving landscapes and reducing energy use in transportation, a major contributor to global climate change.  These incentive programs can include payments for ecosystem services to private landowners.  Future research will include development of a cost-benefit framework for major transportation projects that will allow ecosystem service values of land to be incorporated into decision making.



Urban economics links:

The Center for Neighborhood Technology's Green Infrastructure Calculator 

Campaign for Sensible Growth 

Resources on urban planning and the environment in Chicago by NIPC

LandChoices is an organization advocating conservation design 

Lincoln Institute of Land Policy, a research and policy institute dedicated to land use patterns and policy

Brookings Institution Metropolitan Policy Program

Urban Land Institute 


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For more information, contact kbagstad@uvm.edu