In the post-recession economy, changes in public policy and consumer preferences could work together to boost sustainable development. Government officials are trying to maximize the cost-effectiveness of existing resources, in infrastructure such as utilities and public transit. These efforts are especially strong in communities where less consumer spending and slow growth have reduced government revenue. Consumer spending has dropped along with household resources, due to falling home values, shrinking retirement funds, and sometimes lower incomes. Consumers are buying fewer luxuries and focusing on practical purchases. Under personal pressure to be frugal and social pressure to consider the consequences of lifestyle choices on the environment, consumers will tend to make a virtue of “responsible” choices in housing, vehicles, and other major purchases. Businesspersons feel this social pressure as well, and must respond to both changing consumer views on the true value of goods, and sensitivity to environmental impacts of business activities.
We all have an intuitive sense that these trends interrelate, but the nature of the linkages among them is not necessarily obvious. In the diagram (below), shifts in values support the efficient use of resources, which leads to the strengthening of local economies. All of this culminates in expanding public wealth and the quality of life within a community. The “Convergence Scenario” outlined below follows the diagram’s cycle. The scenario ties the roles of households, employers and their employees, and local government to the cycle stages.
The Convergence Scenario
Value Shifts
Households. With tightening budgets, consumers forgo traditional concepts of maximizing personal, private resources (i.e. backyards, vehicles, etc.) and take a greater interest in publicly provided goods and services, such as parks and other common areas, public transport, etc. Personal consumption focuses on practical, utilitarian, and “environmentally responsible” goods instead of luxury items.
Employers/Employees. Business operations are aligned with green values, both to protect corporate images and to give employees the satisfaction of participating in environmentally responsible work. Sustainability considerations influence both facility design and business location.
Government. City governments redefine the value of growth to incorporate sustainability principles, and take a leadership role by adopting sustainability principles into their management and growth plans. They then leverage that leadership through strategies for economic development that expand green industries and make the city more attractive for eco-conscious firms and employees.
Resource Efficiency
Households. Households embrace the cost savings of higher-density urban housing and mixed-use projects, saving money on household as well as commuting expenses. Urban and suburban residents invest in energy efficiency upgrades.
Employers/Employees. Image-conscious businesspersons choose to locate at inner-city, infill sites that take advantage of existing infrastructure and have urban assets that appeal to workers, such as good public facilities and housing.
Government. Cities reap the cost savings that come from efficient use of resources, which includes using utility, transportation and other infrastructure at close to its carrying capacity. City policies encourage private development that supports such efficiencies, through increased densities, revitalization projects, and other measures to support infill development.
Strengthening Local Economies
Households. Public goods tend to cost less per person, and lead to similar if not greater levels of personal satisfaction than private goods. Consequently, households have more options for spending and saving. Since they follow sustainability practices in their own lives, they support public investments with long-term returns, such as investments in energy efficiency.
Employers/Employees. Vibrant urban areas provide inner-city workers with a residential lifestyle choice that is not available everywhere. Good inner-city housing appeals to high-wage “creative class” workers in sought-after businesses such as information processing and biotechnology. Local green industries expand as a result of retrofitting business and residential properties.
Government. With increases in urban lifestyle choices and efficient delivery of goods and services, the city becomes increasingly competitive as a location for economic expansion. Increasing the value and attractiveness of the city for economic development also reduces pressure to incentivize development by giving up revenues.
Public Wealth, Quality of Life
Households and Employers/Employees. A healthy urban environment expands “social wealth” through enhanced quality of life that makes life better for residents and workers, and workplaces more productive. Successful economic development expands choices for workers.
Government. Increasing revenues, from efficiencies and a strengthened economy, result in further civic improvements.
