New Urbanism vs new incentives
I spent a lot of time thinking about the Mueller development a few weeks ago (considering a blog post that hasn’t materialized yet), and one of the main themes I kept coming back to was incremental improvement vs systemic redesign. In the context of urban development, the former essentially means making modest (although not necessarily insignificant) changes to the existing development paradigm, while the former means completely rethinking the system from the ground up, from the financing model to the energy systems to the interactions between tenants. Mueller is clearly in the incremental improvement camp, and viewed from that perspective it is a highly successful project; the developers and designers have done an excellent job of adding ‘green’ features where it’s easy, pushing the typical building style towards something more sustainable and bringing as many stakeholders on board as possible (the city, neighborhoods, big box retailers, community organizations, etc). Mueller is about as successful an example of ‘New Urbanism’ as you could imagine.
I mention this because there was a post a few days ago on WorldChanging titled “57 Million Chances to Get Housing Right”, discussing the potential impact of substituting sustainable developments for typical developments over the next few years:
he National Research Council’s Transportation Research Board calculated the greenhouse gas savings if new housing was more compact and put homes close to jobs and other amenities. “Driving and the Built Environment: Effects of Compact Development on Motorized Travel, Energy Use, and CO2 Emission,” a report requested by Congress and published last week, determined that 57 million US homes will be needed by 2030 to accommodate population growth and replacement housing. … So what are the benefits to the climate? According to this study, they were fairly modest. Assuming:
- 75 percent of development is compact…
- leads to residents driving 25 percent less…
- the result is vehicle miles traveled, fuel use, and CO2 emissions of new and existing households would decline up to 8 percent by 2030, increasing to up to 11 percent by 2050.
In order to achieve more substantial progress, a second report identifies 4 primary ‘roadblocks’:
- Inadequate infrastructure: a lack of public transit, insufficient, or aging utilities, and under-performing schools in city centers and other areas that are prime locations for sustainable development.
- An uncertain regulatory process: myriad local government requirements, planning and zoning restrictions, fire and other code limitations, extensive project-specific environmental review processes, and local opposition (“no growth” advocates and unhappy neighbors).
- Higher economic costs: a typically more expensive construction process, longer permitting time, and additional infrastructure burdens make sustainable development in existing neighborhoods less economically competitive than constructing in undeveloped areas.
- Skewed tax incentives: local governments prefer to permit large single-use retail buildings to maximize sales tax revenue and minimize infrastructure costs, rather than mixed-use development.
And this is why I mention the incremental/systemic issue; a thousand new urbanist developments like Mueller won’t make half as much impact as a few systemic changes. Our systems were not built to promote sustainable cities, and the first thing you learn in economics is that incentives matter. In order to implement the massive changes which are needed in our built environment, we need to fundamentally restructure the incentives which influence them. As helpful as Mueller and it’s type of development are, they are struggling against multiple systems which undervalue such developments.
In the short term, systemic change may be as difficult to implement as massive incremental changes, but from the perspective of a developer or designer who is hoping to generate change there is one key difference between incremental and systemic proposals; systemic proposals at a small scale can become models for new systems at larger scales. The data above shows that applying ‘New Urbanism’ universally is an inadequate solution; it is an insufficient model for systemic change. What we need are new perspectives capable of fundamentally reducing our energy consumption and encouraging long-term planning by individuals, proposals that not only take advantage of higher-quality infrastructure but supplement it as well, proposals which are not only profitable, but which encourage business practices which will be sustainable in the long term. In my opinion, even a modestly successful proposal which addresses these aspirations is more valuable than another highly successful New Urbanist development.




