Tag: Transportation

  • Could a Las Vegas Train Produce Losses 10 Times More Than Solyndra? (Report Announcement)

    The Reason Foundation has released our "Xpress West" (formerly "DesertXpress") analysis. This high speed rail train would run from Victorville (90 miles from downtown Los Angeles) to Las Vegas. Promoters predict high ridership and profits. They are seeking a subsidized federal loan of more than $5.5 billion, which is within the discretionary authority of the US Department of Transportation to fund.

    Our analysis concludes the following:

    1. There is serious question whether there is a market for Las Vegas travel that would require driving one-third of the way and transferring to the train. If there is no such market, as seems likely from the international experience, ridership could be as low as 97 percent below projections. The reality can be known only after the line is running.

    The balance of the report is based upon the assumption that there is a market for driving to Victorville and boarding a train to Las Vegas.

    2. The ridership and revenue projections (by URS Corporation) are based upon data that is more than 7 years old and predates the Great Financial Crisis. There have been significant downward demand trends in the travel market and Las Vegas tourist market since that time, especially in the share of the market from the Los Angeles Basin. It is inappropriate to use such old data in projecting system performance (Certainly no private company would rely on such old data in a due diligence analysis).

    3. Even after adjusting the obsolete data (which our report does), the ridership projections are implausibly high — at four times the Amtrak Acela ridership between Washington, Baltimore, Philadelphia and New York.

    4. Over 24 years (the forecast period in the project document), we project that expenditures will exceed revenues by between $4 billion and $10 billion. This would mean that there would be insufficient revenues to pay the federal loan. This could result in a taxpayer loss approximately 10 times that of the Solyndra federal loan guarantee.

    5. The free use by the private Xpress West project of the Interstate 15 median could preclude cost effective expansion of this roadway. Even assuming the implausible Xpress West assumptions about the diversion of drivers to the train, the overwhelming majority of growth in the corridor would be on the highway, not on the train. This includes not only the heavy truck traffic, but also car traffic.

    Related: The Las Vegas Monorail

    Wendell Cox was also author of  "Analysis of the Proposed Las Vegas LLC Monorail," which indicated that ridership and revenue projections were extremely optimistic and that the project was likely to fail  financially. Subsequently the project filed bankruptcy and defaulted on bonds. The actual ridership on the Monorail was within the range predicted in "Analysis of the proposed Las Vegas LLC Monorail," and far below the level forecast by project consultant URS Greiner Woodward Clyde.

    Also see this letter from other consultants reviewing the project (Thomas A. Rubin, Jon Twichell Associates, Professor Bernard Malamud  and Wendell Cox).

    The Las Vegas Monorail case is described in the Reason Foundation report.

  • Evolving Urban Form: Dhaka

    A few weeks ago, we suggested that Hong Kong was the "smart growth" ideal, for having the highest urban population density in the high income world. But, if you expand the universe to the poorer, developing countries, Hong Kong barely holds a candle to Dhaka. Dhaka’s 14.6 million people live in just 125 square miles (325 square kilometers). At more than 115,000 people per square mile (Figure 1), or 45,000 per square kilometer (Figure 2), the capital of Bangladesh is nearly 75 percent more dense than Hong Kong.

    The Ultimate in Average Urban Area Density

    None of the world’s megacities comes close to Dhaka’s population density. Mumbai is about one-third less dense, despite its reputation as crowded and congested. The only other megacity (minimum 10 million population) more than one-third as dense as Dhaka is Karachi. Twenty three other megacities fall at least two-thirds short of Dhaka’s density (such as Jakarta, Seoul and Paris). New York’s core, Manhattan, is 40 percent less dense, and the New York urban area does not reach 1/20th of Dhaka’s density


    No city in the world uses land so efficiently as Dhaka. But this comes at a price. With an urban area ranked among the 20 most populous in the world, Dhaka’s average income is so low that it does not even place in the top 100 metropolitan area economies as measured by the Brookings Institution. Thus, the world’s most dense urban area is among the least economically productive. Brookings rated the principally suburban and exurban Hartford metropolitan area number one, with an urban density approximately 1/100th that of Dhaka, Hartford includes the old core city; but as well as the much more substantial primarily suburban or even exurban areas.. Hartford is among the least dense urban areas in the world, at half as dense as Portland and one-fourth as dense as Los Angeles. So much for the illusion that urban density and productivity are joined at the hip.

    Despite Dhaka’s hyper-density, critics complain about Dhaka’s urban sprawl. If Dhaka is "urban sprawl," then the term is meaningless. Perhaps the critics would prefer the rural poor to live in even more crowded shantytowns, or maybe better yet, that they go back home to even more desperate rural poverty. Aspiration is not a bad thing, and if that means cities with more people, covering more land area, so be it.

    Not only does Dhaka have the highest average urban density, but it also has some of the highest neighborhood densities: some slum (shantytown) population densities reach 4,200 per acre, which converts to more than 2,500,000 per square mile or more than 1,000,000 per square kilometer. Estimates of the slum population vary, ranging from a quarter to 60 percent of the area population.

    Dhaka in the Neighborhood

    Dhaka is only 150 miles (250 kilometers) from Kolkata. Both cities were located in the province of Bengal for all but six years of the centuries long period of  British rule. After the division of India and Pakistan in 1947, Dhaka was located in East Pakistan. Kolkata became the capital of the Indian state of West Bengal. For most of their histories, Kolkata was larger than Dhaka. But the Dhaka urban area has just overtaken Kolkata in population. By 2025, the United Nations forecasts that Dhaka will reach 23 million, well ahead of Kolkata’s projected 19 million (Figure 3).

    Dhaka’s growth has been spectacular. In 1970, just before East Pakistan separated from Pakistan to become Bangladesh, the urban area had a population of 1.3 million. Its population grew by more than 10 times, Dhaka growth over four decades trails only Shenzhen among the megacities, which expanded by 30 times over the same period.

    The Metropolitan Area

    Dhaka’s metropolitan area (which includes the urban area and economically integrated rural environs) added approximately 5,000,000 new residents between 2001 and 2011. Dhaka added at least a 50 percent to its population, rising from just under 10 million population to just over 15 million during the decade (Note 1). Few, if any of the world’s largest metropolitan areas or urban areas have achieved such a large percentage population increase in a period of 10 years. Even so, Dhaka’s population added fewer people than some larger metropolitan areas over a similar period, such as Karachi, Jakarta and Shanghai (Figure 4).

    Spatial Expansion

    Consistent with the trend since cities escaped walls, Dhaka has been expanding spatially as its population has increased. Over the past decade, the core municipality, Dhaka, increased its population 45 percent. The suburban and exurban population increase was nearly twice as great, at 85 percent (Figure 5). The core city of Dhaka managed to capture just over one-half the population growth, but because of its larger size, the slower percentage growth rate still resulted in half the additional population being in the city (Figure 6). Dhaka thus further confirms the axiom that as cities become larger, they become less dense.


    River City

    Dhaka may be the worst situated urban area in the world. Dhaka is located in wetlands and virtually surrounded by rivers, some of the greatest in the world.

    • Dhaka is 20 miles (32 kilometers) east of the Padma River, which is the main course of the Ganges River.
    • Only a few miles north of this point, the Padma is joined by the Jamuna River, which is the main course of the Brahmaputra River.
    • The Meghna River, the secondary Brahmaputra River course is 15 miles (25 kilometers) to the east of Dhaka.
    • Little more than 30 miles (50 kilometers to the south is the confluence of the Padma River and the Meghna River, which flows the last few miles to the Bay of Bengal as the Meghna.

    Though Dhaka is 100 miles (160 kilometers) from the Bay of Bengal (the Indian Ocean), the lowest parts of the city are little more than five feet (two meters) above sea level. This means serious flooding. The risk is illustrated in Figure 7. The extent of the risk is illustrated by the fact that the areas not prone to flooding cover less land than the urban area. That means that the necessary urban expansion will be very expensive. With the understandable exodus from rural areas to the city, the problems of high density and, particularly slums could become more acute.

    A City Designed for a Metro?

    The river courses and wetlands have forced Dhaka into a generally north-south orientation. The urban area averages from three to seven miles east to west (five to 11 kilometers) and is nearly 30 miles (50 kilometers north to south. The more circular development that would be expected for an inland urban area is precluded by the rivers and wetlands.

    This unusual city form could serve the city well, however, as it builds its first Metro line. Stations on the planned north to south line will be within a long walk of a much of the urban area. It is hard to imagine an urban form and density more suited for a Metro. Construction is supposed to begin within the next two years.

    Not only is Dhaka the largest world urban area without an urban rail system, it is also the largest without a motorway (freeway). That too will soon change, as two should be under construction soon.

    Political Reform and the Future

    Meanwhile, in an attempt to improve city services, the national government has divided the city of Dhaka into two. The Dhaka City Corporation has now been replaced by the Dhaka North City Corporation and the Dhaka South City Corporation. There is an increasing body of literature suggesting that smaller municipalities perform better (and spend less) than larger municipalities. The Dhaka demerger may be the first significant such move since the 1986 breakup of the Greater London Council by the Thatcher government (Note 2).

    Dhaka begins the next decade undertaking significant challenges in infrastructure, economic growth and government reform. However, perhaps the biggest challenge will be to figure out where to put the additional five million people expected by the 2021 census.

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.”

    —–

    Note 1: There was an undercount in the 2011 census, ranging from 3.8 percent in rural areas to 5.3 percent in urban areas. This complicates comparison between the 2001 and 2011 census data.

    Note 2: Even after the subsequent creation of the Greater London Council, by the Blair government, most local functions were not transferred, remaining in the 32 local boroughs. A forced amalgamation of Montréal with suburbs was partially reversed by voter referenda in the early 2000s.

    —-

    Photograph: Farmview Supermarket Transit Transfer Center, on one of the urban area’s few north-south arterial  roadways. (by author)

  • Swing State Geography: The I-4 Corridor

    Overheated presidential politics have done few favors to Florida, except to put 132 miles of hot asphalt on everyone’s lips:  Interstate 4.  Completed in the late 1960s, this interstate (in fact, the only interstate highway to be entirely contained within one state) is known by millions who have  visited there at least once on vacation.  But the social and political reality in the world  around Interstate 4 is little known outside of Central Florida.  Like Ypres, the Flemish town continually under assault during World War 1, I-4 will receive the brunt of both side’s forces.  It deserves to be known a bit for its quirky uniqueness,   even if, like Ypres, it will recede to obscurity once the election is over.

    America’s other single-digit interstate, I-5 in southern California, has such a singular personality that its users refer to it as “the five.” Not so I-4, although many users spit when they say it. With the third highest accident rate in the nation with 1.58 fatal accidents per mile 2004-2008 , Interstate 4 is notorious   for its congestion, dangerous drivers and bad karma. A section of it is even rumored to be haunted.

    I-4 begins rather inauspiciously in Tampa, at a highway interchange with I-275 that even the state Department of Transportation calls “malfunction junction.”   Tampa itself is a brew of German, Italian, Spanish, and Cuban immigrants largely supplanted in the 1980s by in-migration from other states. With a port poised to take advantage of Tampa’s proximity to the Panama Canal, Tampa, and its sister city, St. Petersburg, offer a fantastic coastal setting for urban development. 

    Unfortunately, the two cities now squabble eternally over what has recently been diminishing economic opportunity, often leaving their geography a large, low-grade commercial wasteland. With little to offer except beaches and waterfront real estate, Tampa and St. Pete struggle for their existence. Their airport,  considered the world’s best in the 1980s and 1990s, has been overtaken by newer, better facilities in Orlando, Denver, and other international cities, and like Tampa in general, it suffers as a has-been. No matter; Tampa’s feisty nightlife has turned Ybor City from a quaint, vacant historic district into a wet-zoned bar district that still houses the best music scene in Central Florida.

    Over the bay, St. Petersburg features lovely waterfront sidewalk life with delightful galleries and museums, but it remains “God’s waiting room” with shuffleboard courts and early bird specials at local diners. Beautiful older neighborhoods surround both downtowns, but the outer-ring growth that reaches out beyond these prewar suburbs seems unremarkable and bland. The area, once a diverse mix of blue-collar industry and office workers, has lost a lot of both.

    St. Petersburg is set in Pinellas County, a peninsula that reaches downward just as the San Francisco bay area’s peninsula reaches upward.  But as San Francisco took off  Pinellas did not.  Even the gulf coast of Pinellas County, with beautiful beaches, fails to reach its potential, housing gritty, second-rate motels and paint-peeled condos catering to vacationers unable to afford Sarasota further on down the shore.

    Downtown Tampa these days possesses the sad, romantic air of places once important but now in a state of vanished grandeur. The sidewalks are harsh, bricky, and hot; almost no one traverses the sun-grilled open space at noon. Vacant, boarded-up storefronts are prevalent, punctuated by sleazy, vacant eateries. Channelside, a redeveloped area between downtown and the historic district, has suffered the blight of new, cheesy-looking condominiums built over storefronts, awaiting the throngs of young singles seeking an urban lifestyle but never quite arriving. Channelside looks like an empty stage set, et, “for lease” signs flapping in the breeze.

    Beltways like Interstate 4 can be dividers or uniters, and this one is both and neither at the same time.  East of Tampa, it makes little difference which side of I-4 you reside on; north of Interstate 4 is Temple Terrace and the University of South Florida, and south of Interstate 4 lies Brandon, an unincorporated town. Interstate 4 presents no barrier between the two sides, with fluid movement suggesting that in this section, I-4 presents no obstacle or defining boundary.

    Further east, however, one encounters the city of Lakeland, hanging like a pendulous fruit just south of the freeway. There is a rather fascinating notion that Florida’s urban areas are all aspects of one very large, complex web of urban settlement  most of whom are net consumers, taking in more than they produce. Unlovely Lakeland, the agro-industrial capital of central Florida, is just the opposite. Rich with phosphate, one of Florida’s only natural resources, Lakeland mines and processes this mineral for fertilizer and soap additives. It sends the phosphate by truck and by rail to the Port of Tampa for export.  Lakeland also processes orange juice and a variety of Florida’s agricultural products, and has clusters of food-packaging industries to support this activity. Lakeland, in the heart of what locals call “Florida Cracker country”, works hard and is definitively blue collar.

    North of I-4, Lakeland quickly fades into suburbs and ranchlands. Here, one passes through the Green Swamp, a wetlands that remains undeveloped and remote. An aviation museum reminds you that you are in Central Florida indeed, but little else of man’s handiwork is evident until US 27, an old, pre-war highway that runs along a nice, high ridge which brought so many people to Florida before the interstates came.

    As a boundary, Interstate 4 here is still largely symbolic, with a truck-stop cluster of gas stations and fast-food restaurants that eke out a living. On either side, however, the population remains rural and at this juncture, US 27 unites both sides of I-4, negating its myth as a boundary between red and blue Florida. By now, the alert traveler may have noticed that he is trending more northerly than easterly, and indeed Interstate 4 is slowly turning one to the north into the fringes of greater Orlando.

    At one time, Interstate 4 had seasonally fluctuating traffic. In the late summer heat, one could hit stretches of I-4 where no other cars could be seen on the horizon. Today, however, it frequently slows to parking-lot crawl on the outskirts of Lake Buena Vista. For this is the pleasantly named region in which Disney resides, and I-4 straddles this region. On the left side is Walt Disney World.  On the right side, Celebration:  Disney’s tribute to high-design community living.  Both sides lie within the Reedy Creek Improvement District, a self-governing singularity cleverly established by Walt Disney to prevent annoying regulation.

    The first time one arrives to this section of I-4, no matter what age, is special.  Little things like the power line pole artfully shaped like a Mickey Mouse or the words “Magic Kingdom” on the big green signboards.  Here, I-4 is a conduit of anticipation, a rim from which one anxiously departs to plunge into  a fantasy world.

    Flipping conventional wisdom on its head, cosmopolitan Orange County is mainly to the north of I-4, while Osceola County to the south is pretty much…well, country, in a Silver Spurs Rodeo sort of way. Osceola County houses a great deal of the service industry that maintains the machines of tourism. It also contains a large immigrant population, and the mix has raised tensions in this region. Presidential politics must intimately understand the problems of this county, or risk alienation of its voters over gaffes.

    As I-4 finally turns due north you pass through an area once considered Orange County’s back door, the county jail, large sewage treatment facilities, and Lockheed Martin all sit, surrounded now by development pressures and the occasional stray theme park. Universal Studios is surrounded by residents so close they can hear the screams from the roller coasters in their back yards. Holy Land is isolated, crammed against I-4’s huge wall; and the spectacle of International Drive, one of the most interesting and unstudied urban conditions ever, is visible from much of I-4 as one trends northward towards downtown.

    After twisting and turning through more blah suburbia, I-4 finally ascends to an elevated, straight bridge and threads its way past downtown Orlando.  This is actually, when traffic is flowing, a terrific urban experience, especially at night. To the right, Orlando’s small collection of meek towers, marked by the Captain Crunch hat of a failed condominium; to the left, the Magic’s basketball arena.  This drive continues northward through Orlando’s mosaic of adjacent towns. Younger than Florida’s average population, and largely from somewhere else, this region seems to be perpetually seeking itself, but never quite finding it. The allure of New York and Chicago seem to pick off the best and the brightest, but these folks are always backfilled with newcomers. With the leftist firebrand Alan Grayson   counterbalanced by the Tea Party’s right wing voice, Daniel Webster, the area will be critical in  this election season.

    Past Orlando’s heat and light, Interstate 4 traverses one last stretch of Florida’s untamed wilds, the Tomoka wetlands. This is the stretch that is rumored to be haunted, for traffic fatalities seem more common than normal as one traverses through region here. Perhaps the proximity of Cassadega , home to many spiritualists, has something to do with it, or perhaps the vengeful souls from a graveyard  supposedly under the roadbed are to blame. Either way, one is relieved to see signs of civilization when one finally reaches the end of Interstate 4 as it tees into I-95 near Daytona, Florida.

    One of many cities trying to reinvent itself, Daytona’s allegiance to Nascar and motorcycles is legendary, but it has suffered heavy joblessness and unsettlement in this Millennial Depression. With its share of overbuilt beachfront condos, an unusually blighted amusement park in the center of town, and a restless, angry inner-city population, Daytona’s dire straits resembles, in some ways, Detroit or other hard-hit areas. 

    And so, Interstate 4 begins and ends. Like Ypres, it may come to represent the battleground of an ugly war. The front at one end of I-4, St. Petersburg, represents genteel poverty, at the other the angry poor are looking for answers. In the middle, Orlando has the two extremes of political viewpoints personified by real candidates with passionate followers. Interstate 4, in the Orlando area, was a recipient of a new congressional district, thanks to population growth that continues into the state. What this population growth brings, and how it changes the character of this interesting, complex corridor, will be revealed after the election in November.

    Richard Reep is an architect and artist who lives in Winter Park, Florida. His practice has centered around hospitality-driven mixed use, and he has contributed in various capacities to urban mixed-use projects, both nationally and internationally, for the last 25 years.

    Interstate 4 sign photo by Bigstockphoto.com.

  • The Uncertain Future of the California Bullet Train

    On July 18, at a site pregnant with symbolism — the future location of what HSR advocates hope will become San Francisco’s terminus of the state’s bullet train — California Gov. Jerry Brown signed a bill to fund construction of the first section of the high-speed line. Earlier in the day, Brown had traveled for a similar ceremony to Los Angeles, the other "bookend" of the project. The bill signing ceremonies followed the state Senate’s approval (by a single vote) earlier in the month of nearly $8 billion in state and federal money to build the initial section of the line in the Central Valley and to make  a series of  transportation infrastructure improvements in the LA and Bay Area. 

    According to sources at the California High Speed Rail Authority (CHSRA), the total infrastructure commitment now involves:

    *  $6 billion for construction of the first section of the high-speed line in the Central Valley ($2.7B of state HSR bonds and $3.3B of federal ARRA funds);

    *  $1.2 billion for electrification of Caltrain, the commuter rail line in the SF Peninsula (half from state HSR bonds and half from local funds);

    *  $1 billion for San Francisco’s Central Subway (of which $61M is in HSR "connectivity" funds and $930M in federal New Starts money);

    *  $1.5 billion in other connectivity improvements (BART car replacements, LA Metrolink upgrades, LA regional connector, grade separation improvements) funded by the remaining "connectivity" funds, which must be matched ; and

    *  $1 billion in other SoCal projects ($500M from state HSR funds which must be matched).

    As can be seen from the above summary, almost half the funding is for upgrades to conventional transit/commuter rail services in LA and the Bay Area. Much to the chagrin of high-speed purists, the project has morphed into a statewide transportation program much of which is totally unrelated to the high-speed rail initiative approved by the voters in Proposition 1A.

    Whether this shift in emphasis represents "a giant fraud perpetrated on the voters who passed Proposition 1A and voted for a true HSR system;" or whether this is a "victory for common sense, a decision that wisely places greater value on satisfying present-day needs than on promises and conjectures of distant-in-time benefits" depends on one’s point of view (both are direct quotes from our interviews.) While bullet train visionaries will view the "bookends" strategy as a betrayal of the original Prop 1A pledge, pragmatists will hail it as a prudent and realistic move to gain political support and a  hedge against  the uncertainties facing the high speed rail project. Just what obstacles confront the project in the months ahead can be gleaned from the discussion below.

    Obstacles and Uncertainties

    Despite the celebratory and self-congratulatory tone of the Governor’s speech, the project faces a number of impediments that could delay it for years if not put an end to it altogether. As a headline in a Wall Street Journal article put it, "For Now, the Bullet Train May Go Nowhere." (WSJ, July 8, 2012). The hurdles the project must overcome include:

    *   A major lawsuit asserting that the Central Valley line project as proposed and approved by the Legislature does not comply with various provisions of the enabling Proposition 1A. According to the plaintiffs, the deficiencies include:(1) no electrification, (2) lack of a "useable segment" (the 130 mile section in the Central Valley by itself is claimed not to satisfy the requirements of an operable segment); (3) lack of adequate committed funding; (4) trip times above the promised 2 hrs 40 min; (5) the need for an operating subsidy; (6) inability to meet the Federal requirement to complete project by September 2017; and (7) inability to meet the promise of a "one-seat ride" from LA to SF (the "blended" approach would require at least one transfer). (John Tos, Aaron Fukuda and County of Kings v. California High Speed Rail Authority). The suit is moving toward trial sometime in 2013.

    *   A lawsuit filed by the Madera County and the Madera and Merced County Farm Bureaus asking for a preliminary injunction to block rail construction in the Central Valley, slated to begin later this year. The suit asserts that the rail line would disrupt 1500 acres of fertile land by cutting off irrigation canals. Officials of the two bureaus say more than 500 farmers whose land lies in the path of the rail line plan to fight any attempts by the state to seize their properties by eminent domain. "It’s going to be a long battle for the Rail Authority," said executive director of the Merced County Farm Bureau. "There is going to be opposition every step of the way."

    *   Several lawsuits challenging the Program level EIR for the Bay-Area-to-Central-Valley section of the statewide project. A victory by the challengers of the Program EIR would "undo" the project level EIRs for the Central Valley construction project, according to Gary A Patton, an attorney who has been involved in the litigation.

    *   Several environmental lawsuits charging the HSR project with violations of the state environmental law (CEQUA) and the Endangered Species Act. The Governor, under pressure from environmentalists, has recently withdrawn his threat  to waive CEQUA requirements.

    *   The possibility of a legal challenge that Proposition 1A money is being used "unlawfully," i.e. for non-HSR projects, in the "bookend" areas.

    Any of the above actions could delay the issuance of the bonds and/or land acquisition, potentially delaying the start of construction and threatening the Authority’s ability to complete the Central Valley section by the federally imposed deadline of September 2017.

    When asked about the potential impact of litigation on the Authority’s schedule, Chairman Dan Richard observed that "simply filing a lawsuit does not means they will win, nor if they do win does it automatically mean injunctive relief." In other words, the litigation may or may not delay construction in the Central Valley. It’s California, so there will always be lawsuits," Richard added with a chuckle.

    The "Bookends" Approach 

    Chairman Richard’s approach is two-pronged. While supportive of the distant vision of linking the Southern and Northern portions of the state with a high-speed rail line, he sees a need to show signs of near-term service improvements in order to gain crucial political support of skeptical local officials and the public. The dollars spent on the "bookends" could have "an immediate and dramatic effect" he told us.

    Improving the metropolitan "bookends" of the system will make it possible to increase the speed of local commuter trains and thus bring immediate travel benefits to large segments of California’s urban population. Will Kempton, chief executive of the Orange County Transportation Authority (OCTA) and chairman of the Independent Peer Review Group advising the High Speed rail Authority agrees. It will be a good investment whether or not the overall $68 billion high-speed rail project ever gets completed, he said. Sensing a promise of new money, planning and transportation agencies in Southern California and the Bay Area have thrown their support to the Authority’s "bookend" strategy.

    The Long-Term Strategy

    As for implementing the high-speed rail project itself, Richard is convinced that its various pieces will eventually fall into place, one step at a time. "What we’re doing is building a high-speed rail line," he told us, "that will connect to the existing tracks and allow passenger-only service between the town of Madera (north of Fresno) and Bakersfield. It will cut significant time off the trip from Oakland/Sacramento to Bakersfield.. At the same time we will be upgrading Metrolink from LA/Union Station up to Palmdale and we have our sight set on the next phase, which is Bakersfield to Palmdale. Once that gap is closed, we’ll have an intercity rail line from LA to northern California, albeit one with a couple of transfers, but we think that is when private sector investment will come in and help upgrade the entire line to full high speed rail. Even our critics agree that if we get to Palmdale, everything changes. We’re not that far away, in terms of either miles or dollars. … Richard summed up, "We took great pains to make sure the investment is not stranded. The point is that we have an effective beachhead for a true advanced passenger rail system."

    Exactly how does the Authority propose to fund the $8-11B cost to close the gap from Bakersfield and the Central Valley to Palmdale and down to LA (assuming the project does not go over budget)? Richard remains serene and confident. "We will have about $4 billion of our bonds left," he said." They must be matched. We will be looking for federal funding, to be sure, arguing that this can help free up freight capacity, assist goods movement through the Central Valley and enhance the efficiency of ports. … We will also be pushing hard to look at other private sources…If all of that fails, we have the prospect of state cap-and-trade revenues."

    These are heroic assumptions. Future federal support is highly uncertain. Congress, by eliminating Title V of the Senate transportation bill (the National Rail System Preservation, Expansion and development Act of 2012) from the final version of the surface transportation reauthorization (MAP-21) and by denying Administration requests for high-speed rail funds three years in a row, could not have sent a clearer message that states should not count on continued congressional funding of high speed rail, Transportation Secretary Ray LaHood’s bluster notwithstanding ("We will not be dissuaded by the naysayers in Congress…High speed rail is alive and well in America…The Administration is keeping high-speed rail on track…") "The President’s high-speed rail program is "a vision disconnected from reality," members of the Democratic-controlled Senate Budget Committee lectured Secretary LaHood at a recent hearing.

    Private sector funding is equally problematic. "We see no evidence that private investors are taking serious interest in this project at this time," a financial consultant knowledgeable in public-private partnerships told us. As for cap-and-trade revenues, their use to bail out HSR is expected to meet with opposition from the state legislature, according to several sources.

    For the backers of high speed rail, the implications are grave. Absent further federal funds and absent private capital, the State will be obliged to seek a fresh infusion of public money as early as 2014 if it is to continue pursuing its $68 billion train project. Will California voters be willing to approve new bonds for this venture, given recent surveys indicating dwindling popular support? Can the Governor and the Authority keep the faith alive by dangling a vision of a bullet train that few voters (and politicians) can hope to see deployed in their lifetime? There is reason to be skeptical.

    Ken Orski has worked professionally in the field of transportation for over 30 years.

    CA route map by Wikipedia user CountZ.

  • Atlanta Resoundingly Rejects Transit Tax

    Atlanta area voters said "no" to a proposed $7 billion transportation tax that was promoted as a solution to the metropolitan area’s legendary traffic congestion, despite a campaign in which supporters outspent opponents by more than 500 to one.

    With 99 percent of the precincts reporting, the Atlanta Journal Constitution reported that the measure lost 63% to 37%. This 26% margin of loss was nearly three times the margin shown in most recent poll by the Journal-Constitution. Proponents had claimed on the weekend that the measure was "dead even" three days before the election.

    Proponents spent heavily on the campaign, with reports ranging up to $8.5 million in campaign donations, indicating a cost to contributors of more than $30 per vote. Opponents raised less than $15,000.

    The tax issue failed in all 10 counties. The defeats were modest in Fulton County (the core county, which includes most of the city of Atlanta) and DeKalb County (which contains the rest of Atlanta). Huge "no" vote margins were recorded in the largest suburban counties. In Gwinnett County, the no votes prevailed by a margin of 71% to 29%. In adjacent Cobb County, the margin was 69% to 31%.

    On election morning, the Atlanta-Journal Constitution featured opposing commentaries by regional planning agency (Atlanta Regional Commission) Chairman Tad Leithead and me. Chairman Leithead stressed the view that the tax would lead to reduced traffic congestion, job creation and economic development. My column stressed the view that the disproportionate spending on transit (53 percent of the money for one percent of the travel market) would not reduce traffic congestion.

  • Transportation for Tomorrow: Driverless Cars

    Economist Clifford Winston of the Brookings Institution outlines the surface transportation system of the future in a Wall Street Journal commentary, "Paving the Way for Diverless Cars." Winston notes "a much better technological solution is on the horizon" than high speed rail "as an effective way to reduce highway congestion" as the Obama administration in Washington and the Brown administration in Sacramento contend. Indeed, not even the voluminous planning documentation used to justify high speed rail provides evidence that the 21st century edition of an early 19th century technology can materially reduce traffic congestion.

    Already Google has conducted experiments with the automated car that have been so successful that they are now permitted in Nevada. Winston suggests that by automating cars, it will be necessary to separate automobile traffic from truck traffic, which will make it possible to provide additional traffic lanes within the existing road footprint. Non-automated cars and trucks would continue to operate in conventional, wider lanes on the same right-of-way. Another advantage would be that with the automated control, more cars could be accommodated in each lane. The need for highway expansion would be largely displaced by substantially improving capacity by upgrading highways with 21st century technology.

    Winston has been a critic of overly expensive urban rail systems and transit subsidies. Driverless cars were also the subject of a Wall Street Journal commentary by Randal O’Toole in 2010.

  • Housing Affordability Protests Occurring in “Livable” Hong Kong, Not “Sprawling” Atlanta

    The Economist has published another in its city rating series, under the headline "The Best city in the World." This one was the result of a contest examining ways to elaborate on its rating system. The winner, Filippo Lovato, added a spatial dimension to the ratings, which included a 5 point rating of "sprawl," a pejorative term for the natural expansion of cities (which in this article means urban areas, areas of continuous urban development). Much of the urban planning literature is pre-occupied with combating urban sprawl, though urban expansion continues virtually everywhere around the world, as cities add population and become more affluent.

    Livability for Whom?

    As Jon Copestake, the Editor of the Economist Intelligence Unit’s Cost of Living and Livability surveys and I discussed in front of a Property Institute of Western Australia meeting, The Economist livability ratings are not aimed at average resident households, but rather at an international audience, such as corporate executives and corporate relocation services. This distinction can be important.

    Hong Kong was top ranked for livability in the new Economist list. Doubtless this is accurate for well paid executives posted temporarily, who are granted substantial housing allowances by their employers and who can live in luxury condominiums within a short walk or taxi ride to their jobs in Central (the core of the Hong Kong central business district).

    For local residents, livability is measured differently than for jet-setters or corporate executives.

    Hong Kong: Smart Growth Model

    With the developed world’s highest urban area density and lowest automobile market share, Hong Kong beguiles anti-sprawl "smart growth" crusaders, for whom these two characteristics are the "two great commandments."

    The entire  Hong Kong urban form (urban area) is as dense as Manhattan at 67,000 per square mile (25,900 per square kilometer), but is more than twelve times the density of the New York urban area: the city and its “sprawling” surrounding suburbs (5,300 per square or 2,100 per square kilometer). Similarly, Hong Kong is somewhat more dense than the ville de Paris, but seven times the density of the Paris urban area (9,800 per square mile or 3,800 per square kilometer). This hyper-density combined with one of the world’s strongest central business districts give Hong Kong a nearly 80% mass transit share of motorized travel, nearly 10 times that of the New York urban area and more than three times that of the Paris urban area (Figure 1).

    "Livable" Hong Kong?

    To its permanent and unsubsidized residents, though, Hong Kong’s spatial Nirvana does not provide much in terms of livability.

    Excessively Long Commutes Hong Kong’s high density indicates that jobs and houses are relatively close to one another, which should indicate that commute times would be short. Not so. Commutes are among the longest in the developed world – only Tokyo residents take more time to get to work. (Figure 2)

    The average one way commute is 46 minutes in Hong Kong, well above the developed world average of 33 minutes for urban areas over 5,000,000 population. By comparison, commuters in similarly sized Dallas-Fort Worth (26 minutes) and "gridlocked" Los Angeles (27 minutes) get to work much faster. Commuting also takes longer in Hong Kong than in Paris (34 minutes) and London (37 minutes).  Lengthy commutes impose an economic price and make Hong Kong less livable.

    Exorbitant House Prices: Hong Kong’s housing, the largest household budget item, is profoundly unaffordable. The 8th Annual Demographia International Housing Affordability Survey rates Hong Kong as the most costly out of 325 metropolitan areas. The median house price in Hong Kong’s is 12.6 times the median annual gross household income (the "median multiple"), which leaves little more than a pittance in discretionary income for many households. Perhaps this is why Hong Kong’s fertility rate has fallen to rock bottom levels near the lowest on the planet – people cannot afford kids.

    Even during the housing bubble, coastal California never became so unaffordable. Hong Kong housing is nearly twice as costly as San Francisco (6.7 median multiple) and more than four times as costly as Dallas-Fort Worth (2.9), Houston (2.9) or Atlanta (Figure 3).

    Concern about housing affordability has become so intense that it is an issue in public protests, which The Economist reports to have drawn up to 400,000 people earlier this month (link to photo). Exorbitant house prices make Hong Kong less livable.

    "Sprawling" Atlanta

    Things are much different in "sprawling" Atlanta, which The Economist’s spatial list ranks as the worst among the US entries. Atlanta is at the opposite end of the density spectrum from Hong Kong, with the lowest urban population density of any major developed world urban area.

    Short Commutes: Atlanta’s low density would suggest that jobs and houses must be so far apart that commute times are very long. Again, not so. Atlanta commuters have among the shortest travel times (29 minutes) in the world among urban areas of similar size (see Note: Jobs-Housing Balance). Shorter travel times make Atlanta more livable (Figure 4).

    Other similarly sized US urban areas do even better, such as Dallas-Fort Worth (26 minutes) and Atlanta’s leaders know that traffic congestion need to be eased to improve Atlanta’s competitiveness. But the political process politics has offered a dysfunctional plan that would spend more than half of a new tax on mass transit, which is used by only the one percent. Less than one half of the money would be spent on the roads that the 99 percent use (Figure 5). Any strong growth will overwhelm the stingy highway improvements, and if the voters approve the July 31 referendum, Atlanta’s travel time advantage over Hong Kong could narrow.

    Affordable House Prices: Despite being the bane of planning orthodoxy, Atlanta’s has far better housing affordability than Hong Kong. The median multiple is 1.9, compared to Hong Kong’s 12.6. Hong Kongers pay six times as much of their income for their houses (which are also two-thirds smaller than in Atlanta). So far, there have been no protests against Atlanta’s low house prices. Better housing affordability makes Atlanta area more livable.  

    The Hong Kong Model

    Hong Kong’s high density (more than double that of any other large developed world urban area) is an accident of history, the result of geo-politics, not urban planning. Further, China’s impressive new cities are being built at a small fraction of Hong Kong densities. Yet, Hong Kong has given much to the world. Not least is the fact that its market oriented economy served as the model for economic reform which has radically improved livability for hundreds of millions of people in China.

    Further, Hong Kong is attractive as one of the world’s premier tourist destinations. For aficionados of cities, like me, Hong Kong is intensely interesting. It is the ultimate in urbanization. It is a wonderful place to visit and to live – if someone else is paying the bills.

    However, the interplay between Hong Kong’s hyper-dense urban form and its transportation system burdens Hong Kong residents dearly, both in time and money. For them, Hong Kong is hardly a model of livability.

    ——————-

    Note: Commuting in Dallas-Fort Worth: Larger Dallas-Fort Worth has faster average work trip travel times than Atlanta, at 26 minutes, which are principally are aided by its much superior freeway (motorway) systems and arterial street (non-freeway boulevard) systems. Transit carries about one-half the share (0.6%) of travel in Dallas-Fort Worth as in Atlanta.

    Note: Jobs-Housing Balance: One of urban planning’s principal goals is to achieve a jobs-housing balance, wherein jobs and housing are so close that people can walk to work or use transit, minimizing travel times and distances. Hong Kong is best in this, with its small urban footprint. Yet, despite having achieved the ultimate, it takes Hong Kongers much longer to get to work than Atlantans. The comparison of Hong Kong and Atlanta shows this theoretical measure to be of little importance. A better indicator of the jobs-housing balance is practical – how long it takes to get to work.

    Note: Travel Times by Car and Transit: Mass transit has substantially longer average work trip travel times than cars in nearly all of the world metropolitan areas for which data is available. In Atlanta, the average work trip by car (single-occupancy) was 29 minutes in 2007, compared to 54 minutes for mass transit.

    ———-

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.”

    Photograph: Kowloon, Hong Kong (by author)

  • China’s French Connection

    No two countries would appear more divergent than France and China, especially in the age of Eurozone collapse. One country represents the Asian future, while the other is the capital of the failed, if diverting, old world.

    The French recently elected a socialist president and assembly on the basis that everyone should share the country’s deficits and decline. The Chinese, meanwhile, have enough surpluses to buy out the European Union, should they wish to exchange their EU debts for an equity stake. (Maybe they will choose to have Paris shipped east in boxes?)

    To take the measure of the two economies — although I admit this survey lacks academic rigor — I recently crossed each country by rail.

    In China, I rode a succession of trains, high-speed and low, between Beijing and Hong Kong, with stops along the way in Yenan (Mao’s revolutionary capital), Xian (of Terra Cotta Warrior fame), Chongqing (Chiang Kai-shek’s wartime capital), Zhuzhou (a rail junction), Guangzhou (used to be Canton) and Shenzhen (the biggest city near Hong Kong you’ve never heard of).

    I have also recently taken a number of train trips between Geneva and Bordeaux and crossed “France profonde” through the mountainous Massif Central, or gone on more roundabout routes through Toulouse and Tours.

    My conclusions, which even I find surprising: France has a better balance between its land and cities, as well as richer farms and a more sustaining political culture, even if the presidency is a reality show.

    China, at least from a train window, seems to be devoting most of its budget surpluses to moving the population into fifty-story, high-rise apartment buildings, the dormitories of its industrial revolution.

    Like France, China has a high-speed rail network that travels on segregated tracks, allowing for speeds close to 200 miles per hour. I went from Zhuzhou to Guangzhou in about four hours, a trip that used to take overnight. The stations of the expanding high-speed Chinese network, however, are outside the downtowns of most cities, so getting to them feels like a trip to the airport.

    Unlike trips in France, most intercity trips in China take place on slow night trains, with thousands of passengers tucked into open couchette berths. On my trip south, I was usually assigned the cramped middle bunk and rode, even during the day, like “John Malkovich” on floor 7½.

    The French have largely given up on night trains. My regional train from Geneva to Bordeaux is a milk run (skim, I would say, to judge by the amenities), with beautiful views but few passengers. French high speed trains — Trains à Grande Vitesse or TVGs — do go downtown, although the French have the annoying habit of routing every trip through Paris.

    In the current economic crisis, however, funding is being bled from the rails, and many TGV cars look thread-worn. Nevertheless, the TGV remains the inspiration for the Chinese high-speed system, perhaps because many Communist leaders had warm memories of their Paris underground cells.

    Sadly, Chinese cities retain few of their French inspirations. Apart from old Beijing and some quarters of Shanghai, Xian and Guangzhou, Chinese cities are faithful to Maoist doctrine in that that they serve as worker housing and base camps for industrial output.

    I may, however, be one of the few who prefers Beijing over Paris; the biking is better and the hotels are cheaper. Nevertheless, the average Chinese city is going the way of Los Angeles and Phoenix. The streets are less forgiving to cyclists, pedestrians, and kids playing after school. The outskirts of Chinese cities are great walls of housing projects that probably can be seen from the moon.

    In France, because I often travel with a bike, during waits between trains I sometimes go for a downtown spin, which has allowed me to discover the old world charms of Orleans, Tours, Toulouse, and Blois.

    Because French cities were laid out in the eighteenth and nineteenth century and not in 2003, they have narrow streets, often unsuitable for cars, but perfect for walking, bikes and sidewalk cafés. Bordeaux, a hive of narrow streets and small, self-contained neighborhoods, is an excellent example of a car-unfriendly French city that is flourishing.

    Away from the glittering high-rise buildings in places like Dalian and Shanghai, much of train-window China remains a poor country, a succession of terraced subsistence farms, cut out of rocky hillsides and inevitably encased in a steamy fog. Elsewhere, China has the fault lines of runaway development: a population confined to worker housing, and agricultural provinces that are stripped for minerals or exports.

    By comparison, French trains are never far from verdant pastures or neatly tended vineyards. Ironically, China’s detached “people’s” government is the largest consumer of first-growth French wines.

    The wine industry is one of the few meeting points where the French and the Chinese find harmony. China is now fifth (ahead of the U.K.) in wine consumption, and at the high end nearly all of it comes from Bordeaux and Burgundy. (The low end is a concoction of bootlegged Algerian and Rhône reds.) The reason that the wines of Château Lafite Rothschild can command $2000 a bottle is because newly coined Chinese millionaires find it a must-have brand.

    Since France produces a surfeit of wines, the trade should stimulate the economies of both countries for a long time. Nevertheless, French producers live on the precipice of Chinese wine tariffs, should the Beijing government want to promote its own vineyards south of Shanghai at the exclusion of those in Pauillac.

    Which country will fare better in the coming decades: China with its Dickensian economic juggernaut, or France with its budget deficits, despite having well-fed cows and landscapes worthy of Monet?

    Just because my Geneva to Bordeaux train crosses through the contours of an Impressionist painting does not mean that France will return to its imperial glories. Nor do China’s traffic jams mean that it will dissolve into Manchu feudalism. Furthermore, to paraphrase Chou En-lai on the French revolution, it may be “too soon to tell” if Chinese communal capitalism will put an end to the party or to free enterprise.

    Ironically, France does have the surplus of a self-contained economy, even if now it is in hock to German debt markets. Similarly, China has the deficits of post-Maoism—something close to the state capitalism of fascism—including that the best that can said of its Politburo is that it keeps the high-speed trains running on time.

    Personally, I hope that both countries do well. I love that in each I can take trains, get around by bike, read about the Revolution or the Franco-Prussian war, enjoy the cities—especially Beijing and Bordeaux—and, well, drink French wines.

    Photo: The new high-speed rail station, Zhuzhou, China; from the studio of Matthew Brady.

    Matthew Stevenson, a contributing editor of Harper’s Magazine, is the author of Remembering the Twentieth Century Limited, a collection of historical travel essays. His next book is Whistle-Stopping America.

  • High Speed Rail Advocates Discredit Their Cause – Again

    Is there any high speed rail boondoggle big enough to make rail transport advocates reject it?  Sadly, for all too many of them, the answer is No, as two recent developments make clear.

    The first is in California, where the state continues to press forward on a high speed rail plan for the state that could cost anywhere from $68 billion to $100 billion. Voters had previously approved $10 billion in bonds for the project, but as the state’s economy and finances have continued to sour – including multiple major cities going bankrupt – the polls have turned against it, and with good reason. The state faces the prospect of already enacted education cutbacks if Gov. Jerry Brown’s tax increase proposal in not approved in a vote this fall.  Other painful service cuts loom. Voters are rightly asking themselves if now is the time to be borrowing public money for very expensive, speculative infrastructure. 

    Equally, many of the much cited overseas examples of high-speed rail seem, well, to be off the tracks.    China’s rail system has serious safety problems, for example. And developing the most extensive high speed rail system in Europe hasn’t stopped Spain from seeing 50% youth unemployment, a 3 percentage point increase in the VAT tax, and a humiliating bailout from the rest of the EU.

    Nevertheless, the California assembly recently voted to go full speed head on its high speed rail plans. As part of an overall $8 billion rail spending package, the state is borrowing $2.6 billion to complement $3.2 billion in federal funds left over from the stimulus (shovel ready???) to build a starter segment of the line linking Bakersfield and Madera through the Central Valley. This is the easiest segment on which to build – though legal action is likely to delay construction – but doesn’t do anything to link the state’s huge population centers around LA and the Bay Area. With no more significant federal funds likely to be forthcoming, and the state’s finances a wreck, this segment risks becoming an embarrassing white elephant, or, as critics call it, “a train to nowhere”.

    After this vote it came to light that respected French high speed rail operator SNCF had approached California officials, private funding in hand, with a preliminary offer to build the LA-SF link themselves on a better and cheaper alignment along I-5 that would cost only $38 billion. But this was rejected by the state. The Times account suggests this rejection came about due to a combination of a political preference for the inefficient Central Valley segment and the clout of Parsons Brinckerhoff, the lead contractor.  Some commentators have referred to this revelation as a “bombshell.”

    Despite management misstep after management deception, rail advocates around the country cheered California’s decision to build the Central Valley segment. Jerry Brown, with not much to show for his reprise as Governor, is excited of course. Secretary of Transportation Ray LaHood called it a “big win.”  America 2050 (an offshoot of the Regional Plan Association of New York), “commended” the state for “taking a big step forward.”  Streetsblog called it a “major victory.”  While I respect what these organizations do in other contexts, this high speed rail vote is not a major victory, but a major defeat for common sense.

    But apparently not willing to let California take the prize in the rail boondoggle category without a fight, Amtrak shortly thereafter issued a “vision” for rail in the Northeast Corridor that would provide faster service between Boston and Washington, DC – at a cost of $151 billion. Strange as it sounds, some commentators actually lauded Amtrak for reducing costs since the previous plan was $169 billion.  The Brookings Institution was measured in its reaction to the plan, but managed to describe it as “more rational.”   With Republicans seemingly safely in charge of the House for now, and large federal deficits projected for the mid-term future, $151 billion for Amtrak seems purest fantasy.

    These developments are unfortunate because high speed rail could play an important role in US transportation, particularly in the Northeast. But that’s unlikely to happen because of the indiscriminate way establishment advocates have supported anything with the “high speed rail” label attached, ranging from $2 billion, 110 MPH peak speed Toonerville Trolleys in Illinois that barely beat Megabus in terms of journey time to the California rail boondoggle, regardless of merit. All they know that if it claims to be high speed rail, they are in favor of it.

    There are other people who take a more serious view. Unfortunately, they tend to be outsiders with little influence.  For example, Alon Levy suggested a set of near term, incremental Northeast Corridor improvements that might cost 90% less than Amtrak’s plan.

    $8 billion in stimulus dollars have gone to purchase us nothing of any real significance in terms of rail infrastructure. That money, invested wisely in high priority projects in the Northeast Corridor, could have made a big difference and started building a real demonstrated case for high speed rail investment in America. Unfortunately, the way high speed rail has been botched by its advocates, all the money we’ve spent on it has accomplished just the opposite. If California’s Central Valley segment is built and the complete line is never finished, it will likely discredit high speed rail in America for the long term.

    Aaron M. Renn is an independent writer on urban affairs and the founder of Telestrian, a data analysis and mapping tool.

    CA route map by Wikipedia user CountZ.

  • Questioning the Messianic Conception of Smart Growth

    A new analysis from the United Kingdom concludes that smart growth (compact city) policies are not inherently preferable to other urban land use policy regimes, despite the claims of proponents."The current planning policy strategies for land use and transport have virtually no impact on the major long-term increases in resource and energy consumption. They generally tend to increase costs and reduce economic competitiveness." The article goes on: "Claims that compaction will make cities more sustainable have been debated for some time, but they lack conclusive supporting evidence as to the environmental and, particularly, economic and social effects."

    These would not be surprising findings to Newgeography.com readers, who are accustomed to similar analyses rooted in economic, demographic, and environmental data. However, this article appeared in the Spring 2012 issue of the Journal of the American Planning Association, under the title, "Growing Cities Sustainably: Does Urban Form Really Matter?"

    Moreover, the authors are urban planning insiders, including Marcial H. Echenique, a land use and transport professor at Cambridge University, Anthony J. Hargreaves from the Martin Centre for Architectural Studies at Cambridge, Gordon Mitchell from the Faculty of the Environment at the University of Leeds and Anil Namdea of the School of Engineering at the University of Newcastle.

    Smart Growth Criticisms

    Many of the British critiques parallel those made by critics of smart growth for years. They focus particularly on the concern that smart growth generally has neglected economic and social costs. For example, smart growth policies lead to higher house prices by rationing land (such as with urban growth boundaries). Higher house prices lead to less discretionary income for households, so that there is less money for other goods and services, lowering employment levels. The resulting densification leads to more intense traffic congestion, with resulting economic losses and more intense air pollution, which is less healthful.

    The Research

    The authors modeled land use and travel behavior in three areas of England, subjecting them to three land use alternatives: compact development (smart growth), planned development (which I would label "smart growth light") and dispersal, the generally liberal approach common in United States, Canada, Australia and New Zealand for decades after World War II (and still in many US and some Canadian markets).

    Echenique et al analyzed the London metropolitan region (Greater London Authority, Southeast England and East England), which has a population of 20 million and the Newcastle (Tyne and Wear) metropolitan region, which has a population of 1,000,000. They also analyzed a sub-region within London metropolitan region, Cambridge, with a population of 500,000.

    Their model projected little difference in outcomes between the three land use regulatory regimes to 2031. Predictably, land consumption was less under the compact development, but the variation in land consumed varied no more than plus or minus one percent from the trend (base case) in the London area, where only 11 percent of the land is in urban or transport use. Other factors, such as the change in transport energy use, greenhouse gas (GHG) emissions from transport and residences and air pollution varied little between the three regulatory regimes.

    Economic costs in 2031 were projected to be the lowest (best) for the dispersed option and the highest for the compact development option, both in the London and Newcastle metropolitan regions. Planned development ranked second.

    The compact development option scored best in the Cambridge sub-region, while the planned development option was the highest cost. The dispersed option ranked second. The researchers attributed the better result for compact development in the Cambridge area to its uniqueness as a low-density, centrally oriented, high-tech, university community and further noted that densification could "reduce its attractiveness over the longer term."

    Smart Growth Claims: Setting the Record Straight

    Based upon their research and review of the literature, the authors proceed to undermine some of smart growth’s most sacred foundations.

    Smart Growth Claim: Smart growth has little or no impact on house prices:

    Echenique et al: "…restrictions on the supply of development land have led to property price increases, penalizing city dwellers by leading to less dwelling space…”

    Smart Growth Claim: Smart growth increases housing choice:

    Echenique et al: "One downside of this policy is a substantial reduction in choice of dwelling types, with new dwellings being mainly apartments."

    Smart Growth Claim: Smart growth does not increase traffic congestion:

    Echenique et al: The authors cite research indicating that high average density is the main cause of highway congestion in Los Angeles. They also cite Reid Ewing (University of Utah) and Robert Cervero (University of California) who reviewed studies of household travel behavior finding that a doubling of density would lead to only a 5 percent reduction per person, or an increase of 90 percent in travel (Note 1). The authors add: "The obvious conclusion is that an increase in density will increase traffic congestion."

    Smart Growth Claim: Smart growth reduces air pollution:

    Echenique et al: "It can also increase the overall respiratory disease burden as exposure to traffic emissions is increased.

    Smart Growth Claim: "Empty nesters" (aging households with no offspring at home) will seek smaller houses in the urban core: 

    Echenique et al: "There is, however, no substantial evidence that older couples leave their spacious houses and gardens…"

    Smart Growth Claim: Smart growth improves the jobs-housing balance.

    Echenique et al: "One of the main arguments for the dispersed city is that there is no longer a single center where most jobs and services occur. Urban areas, rather, exhibit a dispersed and often polycentric structure, bringing jobs and services closer to residents with a more complex movement pattern not readily served by public transport.

    The authors suggest the following "takeaway:"

    "Urban form policies can have important impacts on local environmental quality, economy, crowding, and social equity, but their influence on energy consumption and land use is very modest; compact development should not automatically be associated with the preferred spatial growth strategy."

    Thus, the Echenique et research contradicts the thesis that compact development or smart growth should replace (make illegal) other regulatory regimes, including the more liberal dispersed pattern.

    "Smart growth principles should not unquestioningly promote increasing levels of compaction on the basis of reducing energy consumption without also considering its potential negative consequences. In many cases, the potential socioeconomic consequences of less housing choice, crowding, and congestion may outweigh its very modest CO2 reduction benefits."

    The British research is an important step toward focusing urban policies on objectives, rather than means. Cities are economic organisms. They have increased their share of the population 10 fold in just two centuries and been pivotal to unprecedented economic growth and affluence. People moved to the cities for economic opportunity, not to sample particular urban forms. Cities best serve their principal purpose and their residents best when they encourage economic growth. The fundamental objective is to maximize the discretionary income of residents, and this can be done while reasonable environmental standards are maintained. Yet, as Echenique et al and others have shown, smart growth tends to retard economic growth. In an age of teetering national economies, failing pension funds and the most uncertain fiscal environment in at least 80 years, the world needs cities to be unleashed for the economic growth. Urban policies that ignore economics need to be replaced with wholistic approaches strongly focused on the key reason that cities exist: to enrich their citizens.

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.”

    ——

    Photo: Letchworth Garden City, London metropolitan region (by author).

    Note 1: Calculation: According to the research, doubling the density of an area reduces vehicle travel per capita by 5 percent. With 200 percent of the previous population (double the density), vehicle travel would be increased 90 percent (200% [x] 95% [=] 190%).