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_'gcirteieens', 'gcirteieens', 'Urban Growth and the Environment', 'Matthew E. Kahn', 'brookings institution press', 'Washington, D.C.', 'ABOUT BROOKINGS The Brookings Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring the highest quality independent research and analysis to bear on current and emerging policy problems. Interpretations or conclusions in Brookings publications should be understood to be solely those of the authors.', 'Copyright © 2006 THE BROOKINGS INSTITUTION 1775 Massachusetts Avenue, N.W., Washington, D.C. 20036', 'www.brookings.edu', 'All rights reserved', 'Library of Congress Cataloging-in-Publication data', 'Kahn, Matthew E., 1966-', 'Green cities : urban growth and the environment Matthew E. Kahn.', 'p. cm.', 'Includes bibliographical references and index.', 'ISBN-13: 978-0-8157-4816-8 (cloth : alk. paper)', 'ISBN-10: 0-8157-4816-7 (cloth : alk. paper)', 'ISBN-13: 978-0-8157-4815-1 (pbk. : alk. paper)', 'ISBN-10: 0-8157-4815-9 (pbk. : alk. paper)', '1. Urban ecology. 2. Urbanization—Environmental aspects.', '3. Cities and towns—Growth. I. Title.', 'HT241.K34 2006', '307.76—dc22', '2006021499', '9 8 7 6 5 4 3 2 1 The paper used in this publication meets minimum requirements of the American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials: ANSI Z39.48-1992.', 'Typeset in Sabon', 'Composition by Kulamer Publishing Services, Potomac, Maryland', 'Printed by R.R. Donnelley, Harrisonburg, Virginia', 'Contents', 'Acknowledgments', 'vii', '1 Introduction', '1', '2 Measuring Urban Environmental Quality', '8', '3 The Urban Environmental Kuznets Curve', '30', '4 Income Growth and the Urban Environment:', 'The Role of the Market', '50', '5 Income Growth and Greener Governance', '67', '6 Population Growth and the Urban Environment', '93', '7 Spatial Growth: The Environmental Cost of', 'Sprawl in the United States', '110', '8 Achieving Urban and Global Sustainability', '130', 'References', '138', 'Index', '150', 'v', 'Acknowledgments', 'Many friends and colleagues have helped me hone this work. I made significant progress on my first draft of this book project when I visited Stanford’s Economics Department during the 2003–2004 academic year. Fortuitously, several environmental economists were all at Stanford that year. Lunches with Antonio Bento, Larry Goulder, Roger Van Hafen, Jim Sanchirico, and Rob Williams helped me formulate many of the ideas presented in this book. At Tufts, I have learned a great deal about environmental issues from my colleagues Gib Metcalf and Bill Moomaw. I wrote the final draft of this book as a visiting scholar at the National Bureau of Economic Research.', 'This book draws on much of my research over the last fifteen years. I would like to thank my co-authors Pat Bajari, Nate Baum-Snow, Dora Costa, Michael Cragg, Denise DiPasquale, Ed Glaeser, John Matsusaka, Jordan Rappaport, Joel Schwartz, and Yutaka Yoshino. Several cohorts of skeptical students at Tufts, Columbia, and Stanford have pushed me to strengthen my arguments. I thank Brett Baden, Dora Costa, Mary Kwak, Jesse Shapiro, Phil Strahan, and Kayo Tajima for extensive comments on the entire manuscript. My editor Mary Kwak deserves special mention. I was quite lucky to work with Mary. I also owe thanks to Starr Belsky, Chris Kelaher, Terry Knopf, Celia Mokalled, and Janet Walker.', 'This book is dedicated to my wife Dora, our son Alex, and my parents, Martin and Carol Kahn.', 'vii', '1 c h a p t e r', 'Introduction', 'Does growth hurt or help the urban environment? The answer, in a nutshell, is “both.” Rapid growth in Asia has caused ambient particulate levels in at least twenty-five cities to rise above three times the World Health Organization’s standard of 90 micrograms per cubic meter, and the mountains of refuse skirting Mexico City have become notorious worldwide. But in other parts of the world, many cities have made a dramatic quality of life comeback while continuing to grow.', 'In nineteenth-century New York, to take a striking example, many urbanites contended daily with fouled water, soot-darkened air, and deafening noise—to say nothing of the dead and dying horses abandoned on the streets.1 Yet in 2004 the city’s bid to host the 2012 Olympics highlighted its commitment to protecting the environment and touted New York as “a city of green.”2 During the nineteenth and early twentieth centuries, the skies above such major cities as Chicago and Pittsburgh were dark with smoke from steel smelters and other heavy industrial plants. Today, Chicago and Pittsburgh are much cleaner than they were forty years ago, and even Los Angeles has experienced a dramatic reduction in smog levels despite rapid growth in population and vehicle mileage. In 1880 the average urbanite in the United States had a life expectancy ten years lower than the average rural resident.3 By 1940 this urban mortality premium had vanished.', 'Why do some growing cities suffer environmental degradation while others are able to preserve or even enhance their environmental quality? In recent years much work in environmental economics has focused on this question. This book draws extensively on this literature to convey what is and is not known about the environmental consequences of urban growth. While economics is called the “dismal science,” economists tend to be optimistic about the consequences of economic growth.4 Most economists have a fair amount of faith in humanity’s ability to respond to incentives to economize on polluting activities. In contrast, many ecologists and environmentalists remain wary of capitalism’s impact on the environment. This book does not seek to settle this dispute. Instead, its goal is to convey the excitement of an ongoing debate over the environmental consequences of market-driven growth.', 'Understanding the relationship between economic development and urban environmental quality is no mere academic exercise. In 2000, 80 percent of the U.S population lived in a metropolitan area, and urban growth is taking place around the world. In 1950, 30 percent of the world’s population lived in cities. In 2000 this fraction grew to 47 percent, and it is predicted to rise to 60 percent by 2030.5 Most of these cities are located in capitalist economies. With the demise of communism and China’s economic transition, most urbanites live, work, and shop in free-market economies. Thus the future of urban environmental quality depends on how pollution evolves in conjunction with freemarket growth.', 'The economists’ main contribution to analysis of this issue is the concept of the environmental Kuznets curve (EKC).6 Put succinctly, this hypothesis posits that economic development—especially in poorer cities—is both a foe and a friend of urban environmental quality. Economic development often leads environmental quality to decline, but continued development can help middle-income and richer cities solve many pollution-related problems. Why? Because as income grows, consumption and production patterns become increasingly “green” while the prospects for greener governance improve. Many studies have identified environmental indicators that fit the EKC pattern in the fifteen years since it was introduced.', 'But environmentalists have raised a number of important objections to the optimism implicit in the EKC. For example, some argue that even if the EKC is correct, it provides little hope to poor cities that may be trapped for a long time on the wrong side of the curve. The EKC may also have little relevance in many important areas, such as pollution problems that involve externalities on a global scale. Moreover, by focusing on changes in income, the EKC gives an incomplete picture of urban growth and its impact on environmental quality. These issues will all be taken up in this book.', 'What Is a Green City?', 'Before proceeding further, some terms should be defined. First, although I frequently highlight specific challenges facing central cities, the term city generally refers to a broader metropolitan area. For example, “Chicago” represents the greater metropolitan area surrounding the city of Chicago. A metropolitan area is a core area containing a substantial population nucleus, together with adjacent communities having a high degree of social and economic integration with that core. Metropolitan areas can comprise one or more entire counties.7 Focusing on metropoli', '6. Simon Kuznets won the Nobel Prize in Economics in 1971. He studied the cross-national relationship between national per capita income and national income inequality and found evidence of a nonlinear pattern. Gene Grossman and Alan Krueger later identified a similar relationship between per capita income and pollution, as discussed in chapter 3 (Grossman and Krueger 1995).', '7. See U.S. Census Bureau, “Metropolitan and Micropolitan Statistical Areas” (www.census.gov population www estimates metroarea.html _October 2005_).' 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