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2016 GGSD Forum - Session 1: Presentation by Mr. Joaquim Oliveira Martins, Head, Regional Development Policy Division, OECD

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Land use policies for Green Growth

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2016 GGSD Forum - Session 1: Presentation by Mr. Joaquim Oliveira Martins, Head, Regional Development Policy Division, OECD

  1. 1. LAND USE POLICIES FOR GREEN GROWTH Urban green growth, spatial planning and land-use 9th & 10th November 2016 Mr. Joaquim Oliveira Martins, Head, Regional Development Policy Division, OECD
  2. 2. • Need to find a balance between sustainability, liveability and affordability • Formal planning instruments can be slow to respond to change and foster innovation • Policies outside of the planning system need to be aligned with land use objectives— particularly subnational finances and tax policies Land use policies to foster green and inclusive growth
  3. 3. 0 5000 10000 15000 20000 25000 30000 35000 Property (buildings, infrastructure) Land Machinery & Equipment Inventories Other natural resources Intellectual property Other non financial assests Cultivated biological resources Land and property are by far the most important forms of capital Disaggregated capital stock (six-country sample)U$ billion PPP Note: Data includes Australia, Canada, Czech Republic, France, Japan and Korea. Source: OECD National Accounts Table 9B
  4. 4. The amount of developed land per capita in urban areas differs across the OECD 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Developed land per capita in urban cores (in m²) Developed land per capita in commuting zones (in m²) Source: OECD calculations based on Corine Land Cover and National Land Cover Database Developed land per capita in urban areas *All data is based on the OECD definition of Functional Urban Areas (FUAs)
  5. 5. Land use in urban cores and commuting zones in Europe Urban Cores 0 102030 0 200 600400 800 1000 0 102030 0 200 600400 800 1000 Numberofmetropolitanareas Developed land per capita in m² Developed land per capita in m² Commuting zones Source: OECD calculations based on Corine Land Cover data
  6. 6. Developed land is growing everywhere… 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Annual % growth of developed land in commuting zone Annual % growth of developed land in core Annual growth rates of developed land between 2000 and 2012 Source: OECD calculations based on Corine Land Cover and National Land Cover Database
  7. 7. -1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Annual percentage change in developed land per capita 2000 - 2012 …but per capita land use is declining in many countries Per capita growth of developed land in functional urban areas (cores and commuting zones combined)
  8. 8. Car use is lower in denser regions 0.025ha0.018ha 0.14ha 1ha 0 30 60 90 120 Number of vehicles per 100 inhabitants European TL3 regions Estimated relationship Source: OECD calculations based on Corine Land Cover and National Land Cover Database Note: The positive relationship between land cover and car ownership is robust to controlling for per capita GDP levels and country fixed-effects. Regions with 10% less developed land per capita have 0.75 fewer cars per 100 inhabitants
  9. 9. Housing costs have risen strongly in most OECD countries Inflation-adjusted property prices (1995=100) 0 50 100 150 200 250 300 350 400 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Australia Belgium Canada Switzerland Germany Denmark Spain Finland France United Kingdom Ireland Italy Japan Netherlands Norway New Zealand Sweden United States Average Sweden Japan Ireland UK Germany Norway
  10. 10. Restrictive land use policies can lead to rising housing costs Annualchangehouseprices (2000-2012) Annual change in developed land per capita (2000-2012) • Land use regulations should aim to prevent sprawl… • …but have to provide sufficient space to construct housing for growing populations • Otherwise, housing costs rise -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% -1.0% -0.5% 0.0% 0.5% 1.0%
  11. 11. Very little densification is taking place • Very little densification of building stock on-going since 2000 • Less than 0.01% of developed land in data has changed to a higher density class in Europe; less than 1% has changed in the U.S. • Caveat: existing data not ideal to measure density; only two density classes for Europe; four density classes for the U.S. Europe United States Densified land since 2000/01 Land with constant density since 2000/01 Source: OECD calculations based on Corine Land Cover and National Land Cover Database
  12. 12. • Many cities have densities similar to when they were much smaller Low density neighbourhoods that were once at the urban fringe are now within urban cores without having densified • Greater densities are needed to adapt urban form and build housing for greater populations • Public spaces need to be of high quality in denser environments to ensure well-being High quality density is needed
  13. 13. • Growing economy and population • Many competing demands on land Example in practice: Green Growth in Amsterdam
  14. 14. Six spatial development ambitions to 2040: 1. Increasing density in what is already a dense city 2. Transforming mono-functional areas 3. Enhancing regional transportation 4. Increasing the quality of public space 5. Investing in the recreational use of green space and water 6. Preparing for a post-fossil fuel era Amsterdam’s spatial development ambitions
  15. 15. • New spatial planning legislation pursues certainty where needed, and flexibility where prudent • It encourages flexibility and experiential land uses where possible • To be implemented in 2018 New Dutch Environmental and Planning Act (2016)
  16. 16. How to make planning more flexible and foster good land use? How land is used Public policies aimed at steering land use • Spatial planning • Transport planning • Land use planning • Environmental regulations • Building code regulations Public policies not targeted at land use • Tax policies • Transport taxes and subsidies • Fiscal systems and inter- governmental transfers • Agricultural policies • Energy policies How land is permitted to be used How individuals and businesses want to use land
  17. 17. Fiscal and tax systems incentivise: i. local governments’ planning policies ii. land use decisions by firms and individuals Incentives need to be better aligned with land use objectives Aligning fiscal and tax incentives to land use objectives
  18. 18. Examples: How fiscal and tax systems influence land use In some countries, local governments obtain a large share of revenues from business taxes Local governments have incentives to allocate as much land as possible to commercial uses to maximise tax revenues. In some countries, ownership of single-family homes receives preferential tax treatment Residents have incentives to live in low-density neighbourhoods in sub-urban areas
  19. 19. Examples: How fiscal and tax systems influence land use Agriculture is heavily subsidised across most of the OECD Without subsidies, agricultural land uses would change Many countries make expenses for commuting by car tax deductible Lower costs of commuting provide incentives to live further from the place of work (often in peri-urban areas) and increase car reliance
  20. 20. THANK YOU Contact: joaquim.oliveira@oecd.org For more information contact: Abel Schumann: abel.schumann@oecd.org Tamara Krawchenko: tamara.krawchenko@oecd.org
  21. 21. Extra slides
  22. 22. Distribution of land uses in FUAs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other Forests Agricultural land Developed land Source: OECD calculations based on Corine Land Cover and National Land Cover Database
  23. 23. Ratio of per capita land use in commuting zones relative to cores 0 1 2 3 4 5 6 Ratio developed land per capita Commuting zone - Urban core Source: OECD calculations based on Corine Land Cover and National Land Cover Database
  24. 24. Population growth in commuting zones is disproportionally high -2% -1% 0% 1% 2% 3% 4% 5% 6% IRL MEX NOR AUS CAN AUT BEL GBR USA ESP NLD CHL KOR SWE FIN FRA DNK SVN JPA PRT CHE CZE DEU ITA SVK EST POL HUN GRC Annual population growth in commuting zones 2000-2014 Annual population growth in urban cores 2000-2014 Population growth rates in urban cores and commuting zones Source: OECD calculations based on Corine Land Cover and National Land Cover Database
  25. 25. Per capita land use is becoming more sparing in many commuting zones -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% Annual % growth of developed land per capita in commuting zone Annual % growth of developed land per capita in core Growth rates of developed land per capita Source: OECD calculations based on Corine Land Cover and National Land Cover Database

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