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Monday, June 10, 2019

Urban sprawl

From Wikipedia, the free encyclopedia

Measures for urban sprawl in Europe: upper left the Dispersion of the built-up area (DIS), upper right the Weighted urban proliferation (WUP)
 
View of suburban development in the Phoenix metropolitan area
 
Urban sprawl or suburban sprawl mainly refers to the unrestricted growth in many urban areas of housing, commercial development, and roads over large expanses of land, with little concern for urban planning. In addition to describing a particular form of urbanization, the term also relates to the social and environmental consequences associated with this development. In Continental Europe the term "peri-urbanisation" is often used to denote similar dynamics and phenomena, although the term urban sprawl is currently being used by the European Environment Agency. There is widespread disagreement about what constitutes sprawl and how to quantify it. For example, some commentators measure sprawl only with the average number of residential units per acre in a given area. But others associate it with decentralization (spread of population without a well-defined centre), discontinuity (leapfrog development, as defined below), segregation of uses, and so forth. 

The term urban sprawl is highly politicized, and almost always has negative connotations. It is criticized for causing environmental degradation, intensifying segregation and undermining the vitality of existing urban areas and attacked on aesthetic grounds. Due to the pejorative meaning of the term, few openly support urban sprawl as such. The term has become a rallying cry for managing urban growth.

Definition

The term "urban sprawl" was first used in an article in The Times in 1955 as a negative comment on the state of London's outskirts. Definitions of sprawl vary; researchers in the field acknowledge that the term lacks precision. Batty et al. defined sprawl as "uncoordinated growth: the expansion of community without concern for its consequences, in short, unplanned, incremental urban growth which is often regarded unsustainable." Bhatta et al. wrote in 2010 that despite a dispute over the precise definition of sprawl there is a "general consensus that urban sprawl is characterized by [an] unplanned and uneven pattern of growth, driven by multitude of processes and leading to inefficient resource utilization."

This picture shows the metropolitan areas of the Northeast Megalopolis of the United States demonstrating urban sprawl, including far-flung suburbs and exurbs illuminated at night.
 
Reid Ewing has shown that sprawl has typically been characterized as urban developments exhibiting at least one of the following characteristics: low-density or single-use development, strip development, scattered development, and/or leapfrog development (areas of development interspersed with vacant land). He argued that a better way to identify sprawl was to use indicators rather than characteristics because this was a more flexible and less arbitrary method. He proposed using "accessibility" and "functional open space" as indicators. Ewing's approach has been criticized for assuming that sprawl is defined by negative characteristics.

What constitutes sprawl may be considered a matter of degree and will always be somewhat subjective under many definitions of the term. Ewing has also argued that suburban development does not, per se constitute sprawl depending on the form it takes, although Gordon & Richardson have argued that the term is sometimes used synonymously with suburbanization in a pejorative way.

Despite its world-famous reputation for urban sprawl and car culture, paradoxically, the Los Angeles metropolitan area is the densest in the United States.
 
Metropolitan Los Angeles for example, despite popular notions of being a sprawling city, is the densest metropolitan region in the US, being denser than the New York metropolitan area and the San Francisco Bay Area. Essentially, most of metropolitan Los Angeles is built at more uniform low to moderate density, leading to a much higher overall density for the entire region. This is in contrast to cities such as New York, San Francisco or Chicago which have extremely compact, high-density cores but are surrounded by large areas of extremely low density.

The international cases of sprawl often draw into question the definition of the term and what conditions are necessary for urban growth to be considered sprawl. Metropolitan regions such Greater Mexico City, Delhi National Capital Region and Beijing, are often regarded as sprawling despite being relatively dense and mixed use.

Examples

According to the National Resources Inventory (NRI), about 8,900 square kilometres (2.2 million acres) of land in the United States was developed between 1992 and 2002. Presently, the NRI classifies approximately 100,000 more square kilometres (40,000 square miles) (an area approximately the size of Kentucky) as developed than the Census Bureau classifies as urban. The difference in the NRI classification is that it includes rural development, which by definition cannot be considered to be "urban" sprawl. Currently, according to the 2000 Census, approximately 2.6 percent of the U.S. land area is urban. Approximately 0.8 percent of the nation's land is in the 37 urbanized areas with more than 1,000,000 population. In 2002, these 37 urbanized areas supported around 40% of the total American population.

Nonetheless, some urban areas like Detroit have expanded geographically even while losing population. But it was not just urbanized areas in the U.S. that lost population and sprawled substantially. According to data in "Cities and Automobile Dependence" by Kenworthy and Laube (1999), urbanized area population losses occurred while there was an expansion of sprawl between 1970 and 1990 in Amsterdam, the Netherlands; Brussels, Belgium; Copenhagen, Denmark; Frankfurt, Hamburg and Munich, Germany; and Zurich, Switzerland, albeit without the dismantling of infrastructure that occurred in the United States.

Characteristics

Despite the lack of a clear agreed upon description of what defines sprawl most definitions often associate the following characteristics with sprawl. 

Traffic congestion in sprawling São Paulo, Brazil, which, according to Time magazine, has the world's worst traffic jams.

Single-use development

This refers to a situation where commercial, residential, institutional and industrial areas are separated from one another. Consequently, large tracts of land are devoted to a single use and are segregated from one another by open space, infrastructure, or other barriers. As a result, the places where people live, work, shop, and recreate are far from one another, usually to the extent that walking, transit use and bicycling are impractical, so all these activities generally require a car. The degree to which different land uses are mixed together is often used as an indicator of sprawl in studies of the subject.

Job sprawl and spatial mismatch

Job sprawl is another land use symptom of urban sprawl and car-dependent communities. It is defined as low-density, geographically spread-out patterns of employment, where the majority of jobs in a given metropolitan area are located outside of the main city's central business district (CBD), and increasingly in the suburban periphery. It is often the result of urban disinvestment, the geographic freedom of employment location allowed by predominantly car-dependent commuting patterns of many American suburbs, and many companies' desire to locate in low-density areas that are often more affordable and offer potential for expansion. Spatial mismatch is related to job sprawl and economic environmental justice. Spatial mismatch is defined as the situation where poor urban, predominantly minority citizens are left without easy access to entry-level jobs, as a result of increasing job sprawl and limited transportation options to facilitate a reverse commute to the suburbs. 

Job sprawl has been documented and measured in various ways. It has been shown to be a growing trend in America's metropolitan areas. The Brookings Institution has published multiple articles on the topic. In 2005, author Michael Stoll defined job sprawl simply as jobs located more than 5-mile (8.0 km) radius from the CBD, and measured the concept based on year 2000 U.S. Census data. Other ways of measuring the concept with more detailed rings around the CBD include a 2001 article by Edward Glaeser and Elizabeth Kneebone's 2009 article, which show that sprawling urban peripheries are gaining employment while areas closer to the CBD are losing jobs. These two authors used three geographic rings limited to a 35-mile (56 km) radius around the CBD: 3 miles (4.8 km) or less, 3 to 10 miles (16 km), and 10 to 35 miles (56 km). Kneebone's study showed the following nationwide breakdown for the largest metropolitan areas in 2006: 21.3% of jobs located in the inner ring, 33.6% of jobs in the 3–10 mile ring, and 45.1% in the 10–35 mile ring. This compares to the year 1998 – 23.3%, 34.2%, and 42.5% in those respective rings. The study shows CBD employment share shrinking, and job growth focused in the suburban and exurban outer metropolitan rings.

Low-density

Sprawl is often characterized as consisting of low-density development. The exact definition of "low density" is arguable, but a common example is that of single family homes on large lots. Buildings usually have fewer stories and are spaced farther apart, separated by lawns, landscaping, roads or parking lots. Specific measurements of what constitutes low-density is culturally relative; for example, in the United States 2–4 houses per acre might be considered low-density while in the UK 8–12 would still be considered low-density. Because more automobiles are used much more land is designated for parking. The impact of low density development in many communities is that developed or "urbanized" land is increasing at a faster rate than the population is growing.

Overall density is often lowered by "leapfrog development". This term refers to the relationship, or lack thereof, between subdivisions. Such developments are typically separated by large green belts, i.e. tracts of undeveloped land, resulting in an average density far lower even than the low density indicated by localized per-acre measurements. This is a 20th and 21st century phenomenon generated by the current custom of requiring a developer to provide subdivision infrastructure as a condition of development. Usually, the developer is required to set aside a certain percentage of the developed land for public use, including roads, parks and schools. In the past, when a local government built all the streets in a given location, the town could expand without interruption and with a coherent circulation system, because it had condemnation power. Private developers generally do not have such power (although they can sometimes find local governments willing to help), and often choose to develop on the tracts that happen to be for sale at the time they want to build, rather than pay extra or wait for a more appropriate location.

Conversion of agricultural land to urban use

Land for sprawl is often taken from fertile agricultural lands, which are often located immediately surrounding cities; the extent of modern sprawl has consumed a large amount of the most productive agricultural land, as well as forest, desert and other wilderness areas. In the United States the seller may avoid tax on profit by using a tax break exempting like-kind exchanges from capital gains tax; proceeds from the sale are used to purchase agricultural land elsewhere and the transaction is treated as a "swap" or trade of like assets and no tax is due. Thus urban sprawl is subsidized by the tax code. In China, land has been converted from rural to urban use in advance of demand, leading to vacant rural land intended for future development, and eventual urban sprawl.

Housing subdivisions

Sprawl in Milton, Ontario. This photograph is an example of Canadian suburban development.
 
Housing subdivisions are large tracts of land consisting entirely of newly built residences. New Urbanist architectural firm Duany Plater-Zyberk & Company claim that housing subdivisions "are sometimes called villages, towns, and neighbourhoods by their developers, which is misleading since those terms denote places that are not exclusively residential." They are also referred to as developments. 

Subdivisions often incorporate curved roads and cul-de-sacs. These subdivisions may offer only a few places to enter and exit the development, causing traffic to use high volume collector streets. All trips, no matter how short, must enter the collector road in a suburban system.

Lawn

Because the advent of sprawl meant more land for lower costs, home owners had more land at their disposal, and the development of the residential lawn after the Second World War became commonplace in suburbs, notably, but not exclusively in North America. The creation in the early 20th century of country clubs and golf courses completed the rise of lawn culture in the United States. Lawns now take up a significant amount of land in suburban developments, contributing in no small part to sprawl.

Commercial developments

In areas of sprawl, commercial use is generally segregated from other uses. In the U.S. and Canada, these often take the form of strip malls, which refer to collections of buildings sharing a common parking lot, usually built on a high-capacity roadway with commercial functions (i.e., a "strip"). Similar developments in the UK are called Retail Parks. Strip malls consisting mostly of big box stores or category killers are sometimes called "power centers" (U.S.). These developments tend to be low-density; the buildings are single-story and there is ample space for parking and access for delivery vehicles. This character is reflected in the spacious landscaping of the parking lots and walkways and clear signage of the retail establishments. Some strip malls are undergoing a transformation into Lifestyle centers; entailing investments in common areas and facilities (plazas, cafes) and shifting tenancy from daily goods to recreational shopping. 

Walmart Supercenter in Luray, Virginia.
 
Another prominent form of retail development in areas characterized by sprawl is the shopping mall. Unlike the strip mall, this is usually composed of a single building surrounded by a parking lot that contains multiple shops, usually "anchored" by one or more department stores (Gruen and Smith 1960). The function and size is also distinct from the strip mall. The focus is almost exclusively on recreational shopping rather than daily goods. Shopping malls also tend to serve a wider (regional) public and require higher-order infrastructure such as highway access and can have floorspaces in excess of a million square feet (ca. 100,000 m²). Shopping malls are often detrimental to downtown shopping centres of nearby cities since the shopping malls act as a surrogate for the city centre (Crawford 1992). Some downtowns have responded to this challenge by building shopping centres of their own (Frieden and Sagelyn 1989). 

Fast food chains are often built early in areas with low property values where the population is expected to boom and where large traffic is predicted, and set a precedent for future development. Eric Schlosser, in his book Fast Food Nation, argues that fast food chains accelerate suburban sprawl and help set its tone with their expansive parking lots, flashy signs, and plastic architecture (65). Duany Plater Zyberk & Company believe that this reinforces a destructive pattern of growth in an endless quest to move away from the sprawl that only results in creating more of it.

Effects

Environmental

Urban sprawl is associated with a number of negative environmental outcomes. 

One of the major environmental problems associated with sprawl is land loss, habitat loss and subsequent reduction in biodiversity. A review by Czech and colleagues finds that urbanization endangers more species and is more geographically ubiquitous in the mainland United States than any other human activity. Urban sprawl is disruptive to native flora & fauna and introduces invasive plants into their environments. Although the effects can be mitigated through careful maintenance of native vegetation, the process of ecological succession and public education, sprawl represents one of the primary threats to biodiversity.

Regions with high birth rates and immigration are therefore faced with environmental problems due to unplanned urban growth and emerging megacities such as Kolkata.

Other problems include:
  • flooding, which results from increased impervious surfaces for roads and parking
  • increased temperatures from heat islands, which leads to a significantly increased risk of mortality in elderly populations.
The urban sprawl of Melbourne.
 
At the same time, the urban cores of these and nearly all other major cities in the United States, Western Europe, and Japan that did not annex new territory experienced the related phenomena of falling household size and, particularly in the U.S., "white flight", sustaining population losses. This trend has slowed somewhat in recent years, as more people have regained an interest in urban living.

Due to the larger area consumed by sprawling suburbs compared to urban neighborhoods, more farmland and wildlife habitats are displaced per resident. As forest cover is cleared and covered with impervious surfaces (concrete and asphalt) in the suburbs, rainfall is less effectively absorbed into the groundwater aquifers. This threatens both the quality and quantity of water supplies. Sprawl increases water pollution as rain water picks up gasoline, motor oil, heavy metals, and other pollutants in runoff from parking lots and roads. 

The Chicago metro area, nicknamed "Chicagoland".
 
Gordon & Richardson have argued that the conversion of agricultural land to urban use is not a problem due to the increasing efficiency of agricultural production; they argue that aggregate agricultural production is still more than sufficient to meet global food needs despite the expansion of urban land use.

Health

Sprawl leads to increased driving, and increased driving leads to vehicle emissions that contribute to air pollution and its attendant negative impacts on human health. In addition, the reduced physical activity implied by increased automobile use has negative health consequences. Sprawl significantly predicts chronic medical conditions and health-related quality of life, but not mental health disorders. The American Journal of Public Health and the American Journal of Health Promotion, have both stated that there is a significant connection between sprawl, obesity, and hypertension.

In the years following World War II, when vehicle ownership was becoming widespread, public health officials recommended the health benefits of suburbs due to soot and industrial fumes in the city center. However, air in modern suburbs is not necessarily cleaner than air in urban neighborhoods. In fact, the most polluted air is on crowded highways, where people in suburbs tend to spend more time. On average, suburban residents generate more per capita pollution and carbon emissions than their urban counterparts because of their increased driving.

Safety

A heavy reliance on automobiles increases traffic throughout the city as well as automobile crashes, pedestrian injuries, and air pollution. Motor vehicle crashes are the leading cause of death for Americans between the ages of five and twenty-four and is the leading accident-related cause for all age groups. Residents of more sprawling areas are generally at greater risk of dying in a car crash due to increased exposure to driving. Evidence indicates that pedestrians in sprawling areas are at higher risk than those in denser areas, although the relationship is less clear than for drivers and passengers in vehicles.

Research covered in the Journal of Economic Issues and State and Local Government Review shows a link between sprawl and emergency medical services response and fire department response delays.

Increased infrastructure/transportation costs

Living in larger, more spread out spaces generally makes public services more expensive. Since car usage becomes endemic and public transport often becomes significantly more expensive, city planners are forced to build highway and parking infrastructure, which in turn decreases taxable land and revenue, and decreases the desirability of the area adjacent to such structures. Providing services such as water, sewers, and electricity is also more expensive per household in less dense areas, given that sprawl increases lengths of power lines and pipes, necessitating higher maintenance costs.

Residents of low-density areas spend a higher proportion of their income on transportation than residents of high density areas. The unplanned nature of outward urban development is commonly linked to increased dependency on cars, which, assuming a citizen commutes every day of the year, with a ticket cost for a train at 3 pounds, every year a citizen would spend 1095 pounds on commuting to work, however; the RAC estimates that the average cost of operating a car in the UK is £5,000 a year, which means that urban sprawl would cause an economic loss of 3905 pounds per year, per person through cars alone. 

Major cities – per capita petrol use vs. population density

Social

Urban sprawl may be partly responsible for the decline in social capital in the United States. Compact neighborhoods can foster casual social interactions among neighbors, while sprawl creates barriers. Sprawl tends to replace public spaces with private spaces such as fenced-in backyards.

Critics of sprawl maintain that sprawl erodes quality of life. Duany and Plater-Zyberk believe that in traditional neighborhoods the nearness of the workplace to retail and restaurant space that provides cafes and convenience stores with daytime customers is an essential component to the successful balance of urban life. Furthermore, they state that the closeness of the workplace to homes also gives people the option of walking or riding a bicycle to work or school and that without this kind of interaction between the different components of life the urban pattern quickly falls apart. James Howard Kunstler has argued that poor aesthetics in suburban environments make them "places not worth caring about", and that they lack a sense of history and identity.

Urban sprawl has class and racial implications in many parts of the world; the relative homogeneity of many sprawl developments may reinforce class and racial divides through residential segregation

Numerous studies link increased population density with increased aggression. Some people believe that increased population density encourages crime and anti-social behavior. It is argued that human beings, while social animals, need significant amounts of social space or they become agitated and aggressive. However, the relationship between higher densities and increased social pathology has been largely discredited.

Debate

Morrisville, North Carolina (north side of Morrisville-Carpenter Road)
Morrisville, North Carolina (south side of Morrisville-Carpenter Road)
Rural neighborhoods in Morrisville, North Carolina are rapidly developing into affluent, urbanized neighborhoods and subdivisions. The two images above are on opposite sides of the same street.
 
According to Nancy Chin, a large number of effects of sprawl have been discussed in the academic literature in some detail; however, the most contentious issues can be reduced "to an older set of arguments, between those advocating a planning approach and those advocating the efficiency of the market." Those who criticize sprawl tend to argue that sprawl creates more problems than it solves and should be more heavily regulated, while proponents argue that markets are producing the economically most efficient settlements possible in most situations, even if problems may exist. However, some market oriented commentators believe that the current patterns of sprawl are in fact the result of distortions of the free market. Chin cautions that there is a lack of "reliable empirical evidence to support the arguments made either for or against sprawl." She mentions that the lack of a common definition, the need for more quantitative measures "a broader view both in time and space, and greater comparison with alternative urban forms" would be necessary to draw firmer conclusions and conduct more fruitful debates.

Arguments opposing urban sprawl include concrete effects such as health and environmental issues as well as abstract consequences including neighborhood vitality. American public policy analyst Randal O'Toole of the Cato Institute, a libertarian think tank, has argued that sprawl, thanks to the automobile, gave rise to affordable suburban neighborhoods for middle class and lower class individuals, including non-whites. He notes that efforts to combat sprawl often result in subsidizing development in wealthier and whiter neighborhoods while condemning and demolishing poorer minority neighborhoods.

Groups that oppose sprawl

The American Institute of Architects and the American Planning Association recommend against sprawl and instead endorses smart, mixed-use development, including buildings in close proximity to one another that cut down on automobile use, save energy, and promote walkable, healthy, well-designed neighborhoods. The Sierra Club, the San Francisco Bay Area's Greenbelt Alliance, 1000 Friends of Oregon and counterpart organizations nationwide, and other environmental organizations oppose sprawl and support investment in existing communities. NumbersUSA, a national organization advocating immigration reduction, also opposes urban sprawl, and its executive director, Roy Beck, specializes in the study of this issue.

Consumer preference

One of the primary debates around suburban sprawl is the extent to which sprawl is the result of consumer preference. Some, such as Peter Gordon, a professor of planning and economics at the University of Southern California's School of Urban Planning and Development, argue that most households have shown a clear preference for low-density living and that this is a fact that should not be ignored by planners. Gordon and his frequent collaborator, Harry Richardson have argued that "The principle of consumer sovereignty has played a powerful role in the increase in America’s wealth and in the welfare of its citizens. Producers (including developers) have responded rapidly to households’ demands. It is a giant step backward to interfere with this effective process unless the benefits of intervention substantially exceed its cost." They argue that sprawl generates enough benefits for consumers that they continue to choose it as a form of development over alternative forms, as demonstrated by the continued focus on sprawl type developments by most developers. However, other academics such as Reid Ewing argue that while a large segment of people prefer suburban living that does not mean that sprawl itself is preferred by consumers, and that a large variety of suburban environments satisfy consumer demand, including areas that mitigate the worst effects of sprawl. Others, for example Kenneth T. Jackson have argued that since low-density housing is often (notably in the U.S.A.) subsidized in a variety of ways, consumers' professed preferences for this type of living may be over-stated.

Automobile dependency

A majority of Californians live, commute, and work in the vast and extensive web of Southern California freeways.
 
Whether urban sprawl does increase problems of automobile dependency and whether conversely, policies of smart growth can reduce them have been fiercely contested issues over several decades. An influential study in 1989 by Peter Newman and Jeff Kenworthy compared 32 cities across North America, Australia, Europe and Asia. The study has been criticised for its methodology but the main finding that denser cities, particularly in Asia, have lower car use than sprawling cities, particularly in North America, has been largely accepted although the relationship is clearer at the extremes across continents than it is within countries where conditions are more similar. 

Within cities, studies from across many countries (mainly in the developed world) have shown that denser urban areas with greater mixture of land use and better public transport tend to have lower car use than less dense suburban and ex-urban residential areas. This usually holds true even after controlling for socio-economic factors such as differences in household composition and income. This does not necessarily imply that suburban sprawl causes high car use, however. One confounding factor, which has been the subject of many studies, is residential self-selection: people who prefer to drive tend to move towards low density suburbs, whereas people who prefer to walk, cycle or use transit tend to move towards higher density urban areas, better served by public transport. Some studies have found that, when self-selection is controlled for, the built environment has no significant effect on travel behaviour. More recent studies using more sophisticated methodologies have generally refuted these findings: density, land use and public transport accessibility can influence travel behaviour, although social and economic factors, particularly household income, usually exert a stronger influence.

Those not opposed to low density development argue that traffic intensities tend to be less, traffic speeds faster and, as a result, ambient air pollution is lower. Kansas City, Missouri is often cited as an example of ideal low-density development, with congestion below the mean and home prices below comparable Midwestern cities. Wendell Cox and Randal O'Toole are leading figures supporting lower density development. 

Longitudinal (time-lapse) studies of commute times in major metropolitan areas in the United States have shown that commute times decreased for the period 1969 to 1995 even though the geographic size of the city increased. Other studies suggest, however, that possible personal benefits from commute time savings have been at the expense of environmental costs in the form of longer average commute distances, rising vehicles-miles-traveled (VMT) per worker, and despite road expansions, worsening traffic congestion.

Paradox of intensification

Reviewing the evidence on urban intensification, smart growth and their effects on travel behaviour Melia et al. (2011) found support for the arguments of both supporters and opponents of smart growth measures to counteract urban sprawl. Planning policies that increase population densities in urban areas do tend to reduce car use, but the effect is a weak one, so doubling the population density of a particular area will not halve the frequency or distance of car use. 

These findings led them to propose the paradox of intensification, which states: 

Ceteris paribus, urban intensification which increases population density will reduce per capita car use, with benefits to the global environment, but will also increase concentrations of motor traffic, worsening the local environment in those locations where it occurs.

Risk of increased housing prices

There is also some concern that anti-sprawl policies will increase housing prices. Some research suggests Oregon has had the largest housing affordability loss in the nation, but other research shows that Portland's price increases are comparable to other Western cities.

In Australia, it is claimed by some that housing affordability has hit "crisis levels" due to "urban consolidation" policies implemented by state governments. In Sydney, the ratio of the price of a house relative to income is 9:1. The issue has at times been debated between the major political parties.

Proposed alternatives

Many critics concede that sprawl produces some negative externalities; however there is some dispute about the most effective way to reduce these negative effects. Gordon & Richardson for example argue that the costs of building new public transit is disproportionate to the actual environmental or economic benefits, that land use restrictions will increase the cost of housing and restrict economic opportunity, that infill possibilities are too limited to make a major difference to the structure of American cities, and that the government would need to coerce most people to live in a way that they do not want to in order to substantially change the impact of sprawl. They argue that the property market should be deregulated to allow different people to live as they wish, while providing a framework of market based fees (such as emission fees, congestion charging or road pricing) to mitigate many of the problems associated with sprawl such as congestion and increased pollution.

Alternative development styles

Early attempts at combatting urban sprawl

The Metropolitan Green Belt first proposed by the London County Council in 1935.
 
Starting in the early 20th century, environmentalist opposition to urban sprawl began to coalesce, with roots in the garden city movement, as well as pressure from campaign groups such as the Campaign to Protect Rural England (CPRE). 

Under Herbert Morrison's 1934 leadership of the London County Council, the first formal proposal was made by the Greater London Regional Planning Committee "to provide a reserve supply of public open spaces and of recreational areas and to establish a green belt or girdle of open space". It was again included in an advisory Greater London Plan prepared by Patrick Abercrombie in 1944. The Town and Country Planning Act of 1947 expressly incorporated green belts into all further national urban developments

New provisions for compensation in the 1947 Town and Country Planning Act allowed local authorities around the country to incorporate green belt proposals in their first development plans. The codification of Green Belt policy and its extension to areas other than London came with the historic Circular 42/55 inviting local planning authorities to consider the establishment of Green Belts. The first urban growth boundary in the U.S. was in Fayette County, Kentucky in 1958.

Contemporary anti-sprawl initiatives

The term 'smart growth' has been particularly used in North America. The terms 'compact city' or 'urban intensification' are often used to describe similar concepts in Europe and particularly the UK where it has influenced government policy and planning practice in recent years. 

The state of Oregon enacted a law in 1973 limiting the area urban areas could occupy, through urban growth boundaries. As a result, Portland, the state's largest urban area, has become a leader in smart growth policies that seek to make urban areas more compact (they are called urban consolidation policies). After the creation of this boundary, the population density of the urbanized area increased somewhat (from 1,135 in 1970 to 1,290 per km² in 2000). While the growth boundary has not been tight enough to vastly increase density, the consensus is that the growth boundaries have protected great amounts of wild areas and farmland around the metro area. 

Many parts of the San Francisco Bay Area have also adopted urban growth boundaries; 25 of its cities and 5 of its counties have urban growth boundaries. Many of these were adopted with the support and advocacy of Greenbelt Alliance, a non-profit land conservation and urban planning organization. 

In other areas, the design principles of District Regionalism and New Urbanism have been employed to combat urban sprawl. The concept of Circular flow land use management has been developed in Europe to reduce land take by urban sprawl through promoting inner-city and brownfield development. 

While cities such as Los Angeles are well known for sprawling suburbs, policies and public opinion are changing. Transit-oriented development, in which higher-density mixed-use areas are permitted or encouraged near transit stops is encouraging more compact development in certain areas-particularly those with light and heavy rail transit systems. 

Bicycles are the preferred means of travel in many countries. Also, bicycles are permitted in public transit. Businesses in areas of some towns where bicycle use is high are thriving. Bicycles and transit are contributing in two important ways toward the success of businesses:
  • First, is that on average the people living the closest to these business districts have more money to spend locally because they don't spend as much on their cars.
  • Second, because these people rely more on bicycling, walking and transit than on driving, they tend to focus more of their commerce on locally owned neighborhood businesses that are convenient for them to reach.
Walkability is a measure of how friendly an area is to walking. Walkability has many health, environmental, and economic benefits. However, evaluating walkability is challenging because it requires the consideration of many subjective factors. Factors influencing walkability include the presence or absence and quality of footpaths, sidewalks or other pedestrian right-of-ways, traffic and road conditions, land use patterns, building accessibility, and safety, among others. Walkability is an important concept in sustainable urban design.

Free market

From Wikipedia, the free encyclopedia

In economics, a free market is a system in which the prices for goods and services are determined by the open market and by consumers. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority and from all forms of economic privilege, monopolies and artificial scarcities. Proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and to protect the local economy. In an idealized free-market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.

Scholars contrast the concept of a free market with the concept of a coordinated market in fields of study such as political economy, new institutional economics, economic sociology and political science. All of these fields emphasize the importance in currently existing market systems of rule-making institutions external to the simple forces of supply and demand which create space for those forces to operate to control productive output and distribution. Although free markets are commonly associated with capitalism within a market economy in contemporary usage and popular culture, free markets have also been advocated by anarchists, socialists and some proponents of cooperatives and advocates of profit sharing. Criticism of the theoretical concept may regard systems with significant market power, inequality of bargaining power, or information asymmetry as less than free, with regulation being necessary to control those imbalances in order to allow markets to function more efficiently as well as produce more desirable social outcomes.

Economic systems

Laissez-faire economics

The laissez-faire principle expresses a preference for an absence of non-market pressures on prices and wages such as those from discriminatory government taxes, subsidies, tariffs, regulations of purely private behavior, or government-granted or coercive monopolies. In The Pure Theory of Capital, Friedrich Hayek argued that the goal is the preservation of the unique information contained in the price itself.

The definition of free market has been disputed and made complex by collectivist political philosophers and socialist economic ideas. This contention arose from the divergence from classical economists such as Richard Cantillon, Adam Smith, David Ricardo and Thomas Robert Malthus and from the continental economic science developed primarily by the Spanish scholastic and French classical economists, including Anne-Robert-Jacques Turgot, Baron de Laune, Jean-Baptiste Say and Frédéric Bastiat. During the marginal revolution, subjective value theory was rediscovered.

Although laissez-faire has been commonly associated with capitalism, there is a similair economic theory associated with socialism called left-wing or socialist laissez-faire, or free-market anarchism, also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism. Critics of laissez-faire as commonly understood argue that a truly laissez-faire system would be anti-capitalist and socialist.

Socialist economics

Various forms of socialism based on free markets have existed since the 19th century. Early notable socialist proponents of free markets include Pierre-Joseph Proudhon, Benjamin Tucker and the Ricardian socialists. These economists believed that genuinely free markets and voluntary exchange could not exist within the exploitative conditions of capitalism. These proposals ranged from various forms of worker cooperatives operating in a free-market economy such as the mutualist system proposed by Proudhon, to state-owned enterprises operating in unregulated and open markets. These models of socialism are not to be confused with other forms of market socialism (e.g. the Lange model) where publicly owned enterprises are coordinated by various degrees of economic planning, or where capital good prices are determined through marginal cost pricing.

Advocates of free-market socialism such as Jaroslav Vanek argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew the market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests. Additionally, Vanek states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of the profits (based on the overall performance of their enterprise) in addition to receiving their fixed wage or salary. 

Socialists also assert that free-market capitalism leads to an excessively skewed distribution of income which in turn leads to social instability. As a result, corrective measures in the form of social welfare, re-distributive taxation and administrative costs are required, but they end up being paid into workers hands who spend and help the economy to run. They claim corporate monopolies run rampant in free markets, with endless agency over the consumer. Thus, free-market socialism desires government regulation of markets to prevent social instability, although at the cost of taxpayer dollars.

Georgist economics

For classical economists such as Adam Smith, the term free market does not necessarily refer to a market free from government interference, but rather free from all forms of economic privilege, monopolies and artificial scarcities. This implies that economic rents, i.e. profits generated from a lack of perfect competition, must be reduced or eliminated as much as possible through free competition. 

Economic theory suggests the returns to land and other natural resources are economic rents that cannot be reduced in such a way because of their perfect inelastic supply. Some economic thinkers emphasize the need to share those rents as an essential requirement for a well functioning market. It is suggested this would both eliminate the need for regular taxes that have a negative effect on trade as well as release land and resources that are speculated upon or monopolised. Two features that improve the competition and free market mechanisms. Winston Churchill supported this view by the following statement: "Land is the mother of all monopoly". The American economist and social philosopher Henry George, the most famous proponent of this thesis, wanted to accomplish this through a high land value tax that replaces all other taxes. Followers of his ideas are often called Georgists or geoists and geolibertarians

Léon Walras, one of the founders of the neoclassical economics who helped formulate the general equilibrium theory, had a very similar view. He argued that free competition could only be realized under conditions of state ownership of natural resources and land. Additionally, income taxes could be eliminated because the state would receive income to finance public services through owning such resources and enterprises.

Non-laissez-faire capitalist systems

The stronger incentives to maximize productivity that Vanek conceives as possible in a socialist economy based on cooperative and self-managed enterprises might be accomplished in a capitalistic free-market if employee-owned companies were the norm as envisioned by various thinkers including Louis O. Kelso and James S. Albus.

Concepts

Perfect competition and market failure

Conditions that must exist for unregulated markets to behave as free markets are summarized at perfect competition. An absence of any of these perfect competition ideal conditions is a market failure. Most schools of economics allow that regulatory intervention may provide a substitute force to counter a market failure. Under this thinking, this form of market regulation may be better than an unregulated market at providing a free market.

Supply and demand

Demand for an item (such as goods or services) refers to the market pressure from people trying to buy it. Buyers have a maximum price they are willing to pay and sellers have a minimum price they are willing to offer their product. The point at which the supply and demand curves meet is the equilibrium price of the good and quantity demanded. Sellers willing to offer their goods at a lower price than the equilibrium price receive the difference as producer surplus. Buyers willing to pay for goods at a higher price than the equilibrium price receive the difference as consumer surplus.

The model is commonly applied to wages in the market for labor. The typical roles of supplier and consumer are reversed. The suppliers are individuals, who try to sell (supply) their labor for the highest price. The consumers are businesses, which try to buy (demand) the type of labor they need at the lowest price. As more people offer their labor in that market, the equilibrium wage decreases and the equilibrium level of employment increases as the supply curve shifts to the right. The opposite happens if fewer people offer their wages in the market as the supply curve shifts to the left.

In a free market, individuals and firms taking part in these transactions have the liberty to enter, leave and participate in the market as they so choose. Prices and quantities are allowed to adjust according to economic conditions in order to reach equilibrium and properly allocate resources. However, in many countries around the world governments seek to intervene in the free market in order to achieve certain social or political agendas. Governments may attempt to create social equality or equality of outcome by intervening in the market through actions such as imposing a minimum wage (price floor) or erecting price controls (price ceiling). Other lesser-known goals are also pursued, such as in the United States, where the federal government subsidizes owners of fertile land to not grow crops in order to prevent the supply curve from further shifting to the right and decreasing the equilibrium price. This is done under the justification of maintaining farmers' profits; due to the relative inelasticity of demand for crops, increased supply would lower the price but not significantly increase quantity demanded, thus placing pressure on farmers to exit the market. Those interventions are often done in the name of maintaining basic assumptions of free markets such as the idea that the costs of production must be included in the price of goods. Pollution and depletion costs are sometimes not included in the cost of production (a manufacturer that withdraws water at one location then discharges it polluted downstream, avoiding the cost of treating the water), therefore governments may opt to impose regulations in an attempt to try to internalize all of the cost of production and ultimately include them in the price of the goods.

Advocates of the free market contend that government intervention hampers economic growth by disrupting the natural allocation of resources according to supply and demand while critics of the free market contend that government intervention is sometimes necessary to protect a country's economy from better-developed and more influential economies, while providing the stability necessary for wise long-term investment. Milton Friedman pointed to failures of central planning, price controls and state-owned corporations, particularly in the Soviet Union and China while Ha-Joon Chang cites the examples of post-war Japan and the growth of South Korea's steel industry.

Economic equilibrium

Effects of price freedom
 
With varying degrees of mathematical rigor over time, the general equilibrium theory has demonstrated that under certain conditions of competition the law of supply and demand predominates in this ideal free and competitive market, influencing prices toward an equilibrium that balances the demands for the products against the supplies. At these equilibrium prices, the market distributes the products to the purchasers according to each purchaser's preference or utility for each product and within the relative limits of each buyer's purchasing power. This result is described as market efficiency, or more specifically a Pareto optimum.

This equilibrating behavior of free markets requires certain assumptions about their agents—collectively known as perfect competition—which therefore cannot be results of the market that they create. Among these assumptions are several which are impossible to fully achieve in a real market, such as complete information, interchangeable goods and services and lack of market power. The question then is what approximations of these conditions guarantee approximations of market efficiency and which failures in competition generate overall market failures. Several Nobel Prizes in Economics have been awarded for analyses of market failures due to asymmetric information.

Low barriers to entry

A free market does not require the existence of competition, however it does require a framework that allows new market entrants. Hence, in the lack of coercive barriers, for example, paid licensing certification for certain services and businesses, competition between businesses flourishes all through the demands of consumers, or buyers. It often suggests the presence of the profit motive, although neither a profit motive or profit itself are necessary for a free market. All modern free markets are understood to include entrepreneurs, both individuals and businesses. Typically, a modern free-market economy would include other features such as a stock exchange and a financial services sector, but they do not define it.

Spontaneous order

Friedrich Hayek popularized the view that market economies promote spontaneous order which results in a better "allocation of societal resources than any design could achieve". According to this view, market economies are characterized by the formation of complex transactional networks which produce and distribute goods and services throughout the economy. These networks are not designed, but they nevertheless emerge as a result of decentralized individual economic decisions. The idea of spontaneous order is an elaboration on the invisible hand proposed by Adam Smith in The Wealth of Nations. About the individual, Smith wrote:
By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.
Smith pointed out that one does not get one's dinner by appealing to the brother-love of the butcher, the farmer or the baker. Rather, one appeals to their self-interest and pays them for their labor, arguing:
It is not from the benevolence of the butcher, the brewer or the baker, that we expect our dinner, but from their regard to their own self-interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.
Supporters of this view claim that spontaneous order is superior to any order that does not allow individuals to make their own choices of what to produce, what to buy, what to sell and at what prices due to the number and complexity of the factors involved. They further believe that any attempt to implement central planning will result in more disorder, or a less efficient production and distribution of goods and services. 

Critics such as political economist Karl Polanyi question whether a spontaneously ordered market can exist, completely free of distortions of political policy, claiming that even the ostensibly freest markets require a state to exercise coercive power in some areas, namely to enforce contracts, govern the formation of labor unions, spell out the rights and obligations of corporations, shape who has standing to bring legal actions and define what constitutes an unacceptable conflict of interest.

General principles

The Heritage Foundation, a conservative and right-wing think tank based in Washington, D.C. that defines capitalism as the free market which is free from state intervention and government regulation, tried to identify the key factors necessary to measure the degree of freedom of economy of a particular country. In 1986, they introduced the Index of Economic Freedom which is based on some fifty variables. While this and other similar indices do not necessarily define a free market, The Heritage Foundation measures the degree to which a modern economy is free. The variables are divided into the following major groups:
  • Trade policy
  • Fiscal burden of government
  • Government intervention in the economy
  • Monetary policy
  • Capital flows and foreign investment
  • Banking and finance
  • Wages and prices
  • Property rights
  • Regulation
  • Informal market activity
Accoring to The Heritage Foundation, these free market principles are what helped the United States transition to a free-market economy. International free trade improved the country and in order for Americans to prosper from a strong economy they had no choice but to embrace it. Each group is assigned a numerical value between 1 and 5 as the index is the arithmetical mean of the values, rounded to the nearest hundredth. Initially, countries which were traditionally considered capitalistic received high ratings, but the method improved over time. Some economists such as Milton Friedman and other laissez-faire economists have argued that there is a direct relationship between economic growth and economic freedom and some studies suggest this is true. Ongoing debates exist among scholars regarding methodological issues in empirical studies of the connection between economic freedom and economic growth. These debates and studies continue to explore just what that relationship entails.

The Free Market Monument Foundation defines the principles of a free market as such:
  1. Individual rights: "We are each created with equal individual rights to control and to defend our life, liberty and property and to voluntary contractual exchange."
  2. Limited government: "Governments are instituted only to secure individual rights, deriving their just powers from the consent of the governed."
  3. Equal justice under law: "Government must treat everyone equally; neither rewarding failure nor punishing success."
  4. Subsidiarity: "Government authority must reside at the lowest feasible level."
  5. Spontaneous order: "When individual rights are respected, unregulated competition will maximize economic benefit for society by providing the most goods and services possible at the lowest cost."
  6. Property rights: "Private ownership is the most efficient way to sustainably utilize resources."
  7. Golden rule: "Deal with others honestly and require honesty in return."

Criticism

Critics of the free market have argued that in real world situations it has proven to be susceptible to the development of price fixing monopolies. Such reasoning has led to government intervention, e.g. the United States antitrust law

Two prominent Canadian authors argue that government at times has to intervene to ensure competition in large and important industries. Naomi Klein illustrates this roughly in her work The Shock Doctrine and John Ralston Saul more humorously illustrates this through various examples in The Collapse of Globalism and the Reinvention of the World. While its supporters argue that only a free market can create healthy competition and therefore more business and reasonable prices, opponents say that a free market in its purest form may result in the opposite. According to Klein and Ralston, the merging of companies into giant corporations or the privatization of government-run industry and national assets often result in monopolies or oligopolies requiring government intervention to force competition and reasonable prices. Another form of market failure is speculation, where transactions are made to profit from short term fluctuation, rather from the intrinsic value of the companies or products. This criticism has been challenged by historians such as Lawrence Reed, who argued that monopolies have historically failed to form even in the absence of anti-trust law. This is because monopolies are inherently difficult to maintain as a company that tries to maintain its monopoly by buying out new competitors, for instance, is incentivizing newcomers to enter the market in hope of a buy-out. 

American philosopher and author Cornel West has derisively termed what he perceives as dogmatic arguments for laissez-faire economic policies as free-market fundamentalism. West has contended that such mentality "trivializes the concern for public interest" and "makes money-driven, poll-obsessed elected officials deferential to corporate goals of profit – often at the cost of the common good". American political philosopher Michael J. Sandel contends that in the last thirty years the United States has moved beyond just having a market economy and has become a market society where literally everything is for sale, including aspects of social and civic life such as education, access to justice and political influence. The economic historian Karl Polanyi was highly critical of the idea of the market-based society in his book The Great Transformation, noting that any attempt at its creation would undermine human society and the common good.

Critics of free market economics range from those who reject markets entirely in favour of a planned economy as advocated by various Marxists to those who wish to see market failures regulated to various degrees or supplemented by government interventions. Keynesians support market roles for government such as using fiscal policy for economic stimulus when actions in the private sector lead to sub-optimal economic outcomes of depressions or recessions. Business cycle is used by Keynesians to explain liquidity traps, by which underconsumption occurs, to argue for government intervention with fiscal policy. David McNally of the University of Houston argues in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that Adam Smith's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free market he championed. According to McNally, the development of the market economy involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. McNally also criticizes market socialists for believing in the possibility of fair markets based on equal exchanges to be achieved by purging parasitical elements from the market economy such as private ownership of the means of production, arguing that market socialism is an oxymoron when socialism is defined as an end to wage labour.

Some would argue that only one known example of a true free market exists, namely the black market. The black market is under constant threat by the police, but under no circumstances do the police regulate the substances that are being created. The black market produces wholly unregulated goods and are purchased and consumed unregulated. That is to say, anyone can produce anything at any time and anyone can purchase anything available at any time. The alternative view is that the black market is not a free market at all since high prices and monopolies are often enforced through murder, theft and destruction. Black markets can only exist peripheral to regulated markets where laws are being regularly enforced.

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