Incorporating more economics into urban planning

Abstract

This paper deals with the divorce between the studies on urban planning prepared by economists, which attempt to explain existing urban patterns and indicate optimal solutions, and those of non-economists, which deal with political, sociological and cultural objectives, but often fail to consider how to meet those objectives most efficiently. After considering the results in three cities noted for success in urban regeneration, the paper offers guidelines for incorporating economics into urban and regional planning, drawing, to an extent, on behavioural economics. Five leading goals of urban regeneration are considered, namely: (1) improvement of the general liveability of a community, involving an increase in economic growth, though with several constraints or conditions; (2) transport and infrastructure improvement; (3) elimination of the worst signs of poverty in the community at large; (4) elimination of localised urban blight; and (5) subsidised construction of major sports arenas. The trade-offs between economic and non-economic factors are emphasised, along with the side or secondary effects that accompany all measures.