As our economy stabilizes, the post-recession era will have implications for two interrelated conditions: urban form and societal behavior. We should also expect some convergence between sustainable development principles and the post-recession economy. First, the need to increase fiscal efficiency and maximize value of government services will greatly affect public policy. Second, general consumer lifestyle choices and other behavior will impact the urban form as people respond to influences such as actual financial austerity or the perception of it. At the same time, people are concerned about the need to support economic growth.
Residents’ behavior and consumption patterns have the potential to gradually reshape our urban environments. The built environment represents a considerable investment. Some of that environment is suitable for retrofitting, some not so much. Nevertheless, there are a number of opportunities to increase efficiency in our urban areas through retrofitting that also address changing social needs and consumer preferences. Examples of this include:
- Curtailment of the expansion of “urban fringe” living, resulting in cities that are more compact. As density in cities increases, the ability to provide efficient mass transit options, along with other market-dependent urban amenities both public and private, becomes more manageable.
- The expanded use of clean energy, for which people have indicated a preference, and energy efficiency, which saves money.
- Retrofitting less-energy-efficient uses or configurations of land, transportation systems, and buildings at a municipal or regional scale, which makes the urban area more efficient and tends to make it more attractive for residents and workers. For example, expansion of bike lanes can make transportation systems more efficient overall while also adding to residents’ quality of life.
Each of these examples embodies an economic development dimension. The creation of vibrant urban areas, enabled through increased density and redevelopment, gives residents another distinct lifestyle choice – one that seems to be favored by high-wage “creative class” workers in high-value, sought-after business sectors. Demand for renewable energy could result in the local expansion of “cleantech” industries, creating new jobs and increasing local governmental revenues. Redevelopment of urban sites restores property values, encouraging additional investment.
The structural changes in urban form and accompanying economic development activities should also maximize “social wealth,” that is, a bundle of urban amenities that enhance quality of life, within the city. This social wealth can in turn help compensate not only individual households with diminished budgets, but the entire economy. Personal consumption has traditionally been a major driver of the economy, but public consumption, done properly, also yields general economic benefits, can be highly efficient based on economies of scale, and shifts the household consumption model towards savings and to stabilizing and otherwise enhancing social, rather than just personal, wealth.
The transformation of older urban areas into “urban living” (and the best kind of “urban working”) environments requires participation by the host jurisdiction. Even if funds for direct investment in infrastructure are short, creative, proactive planning can provide the guidance and confidence that investors will be seeking. Having an active role in making noteworthy urban amenities will be a new job description for some economic developers, and an additional challenge for urban planners, but it can be a rewarding task on many levels.
For more insight into economic development, planning and sustainability-related issues and challenges please sign-up for our newsletter by clicking here.
