1. Compact city policies: a workable spatial development model in a changing urban context?
Tadashi MATSUMOTO
Regional Policy for Sustainable Development Division, OECD
Presentation at the Open Days University
October 12, 2011, Brussels
The purpose of my presentation is to introduce an OECD study on compact city policies, which is going to be published at the end of this year

2. Introduction Changing urban context
Continued urbanisation
Global environmental challenges
Energy price
Economic crisis
Demographic changes
Green Growth: how to realize economic growth while addressing environmental concerns
“Workable” urban development model?
Current urban context
OECD launched its Green Growth strategy in May Green Growth focuses on taking advantage of the complementarity of economic and environmental challenges. In other words, environment should not be a constraint for economic growth, but rather a driver for innovation and growth.
These changing urban environment strongly calls for a “workable” urban development model. This is a reason why my team started looking at compact city.

3. Objectives
understand the concept and today’s urban contexts for compact city
understand potential outcomes, particularly in terms of green growth
develop indicators
examine and assess current practices
present key policy design and governance strategies
So our objective is to examine whether compact city is a sound, reasonable urban development model under the current urban policy context.
To better understand the compact city concept and the implications of today’s urban contexts for compact city policies.
To better understand potential outcomes, particularly in terms of how compact cities can contribute to green growth
To develop indicators to monitor compact cities and track policy performance
To examine compact city policies currently being implemented across the OECD in relation to the pursuit of Green Growth objectives and provide ideas for achieving better outcomes
To assess the key compact city strategies as well as key governance challenges and provide ideas for achieving better outcomes

4. Case studies Melbourne, Vancouver, Paris, Toyama and Portland
All regions explicitly set their compact city goals, but with different urban contexts
Population trend: growing/shrinking
Population size: large/small-medium
Geography
Some have long policy history, some don’t

5. Policy assessment: key results
Packaging complimentary policies
Counteract traffic congestion
Ensure housing affordability
High-quality urban design / public realm investment
Encourage green buildings
Reflecting local context
Diversifying policy instruments
use of price machanism coupled with regulations
Packaging complimentary policies: in order to counteract potential adverse effects (congestion, housing affordability, urban heat islands, etc.), complemantary policies should be integrated within the scope of compact city policies.
Reflecting local context: one compact city model does not fit all. Appropriate policy goals and instruments should be chosen according to the local context.
Diversifying policy instruments: a wide range of policy measures, including utilization of price mechanism, should be incorporated into policy packages.
Improving metropolitan governance: a good metropolitan governance is key for effective policy implementation.

6. Strategies with diverse instruments

7. Improving metropolitan governance
A region-wide, integrated, long-term vision
A clear articulation of the roles and responsibilities of all key actors and stakeholders
Vertical and horizontal coordination – networked governance arrangements
Accountability, transparency and reporting
Strategic plan is important – considering that urban spatial form only changes slowly.

8. Case study: Toyama, Japan
Population: 0.4 million (City), 1.1 million (prefecture)
Reached the peak in 2005 and expected to decrease by 20% by 2040
Ageing: by 2035, one out of three are expected to be over 65
I am going to highlight a case study in Toyama, Japan, in order to illustrate how cities in a shrinking population can introduce compact city policies. Toyama is one of the 47 prefectural capital cities in Japan.

9. Urban expansion trend in Toyama
Population changes in Toyama City (past 30 years)
In spite of this trend of population decline, the urban expansion is likely to continue.

10. Challenge in public service delivery
Estimated average costs per resident
Relationship curve for population density and maintenance/update fees required for per resident
Benefits and costs are balanced about 40 persons/ha.
Administrative cost in low-density urban areas
What drove Toyama to compact city is quite unique.
The graph shows the relationship between population density and administrative costs per capita
The areas less dense than this point cost more than the benefits.
The city of Toyama estimated that if the current trend of population diffusion continues until 2025, their administrative costs per capita will increase by 12%.
Source: "Toyama City Compact Urban Development Investigative Research Report"

11. Access to service is linked with density
Distance to the nearest medical facilities
Another challenge for Toyama is the mobility of the elderly under a high automobile dependency.
Source: Kaido and Kwon (2008)

12. Compact City model in Toyama
Yatsuo
Osawano
Hosoiri
Oyama
Shinjo
Minamitoyama
Iwase
Kureha
Mizuhashi
Fuchu
Toyama
Yamada
Railway/streetcar/bus service
Railway service
Bus service
Wide-area hub
Local hub
Legend
Renovation of public transportation to reduce auto-dependency
Incentives to concentrate activities in the target areas
Toyama model is characterised by:
Renovation of public transportation to reduce auto-dependency
Financial incentives to concentrate activities in the target areas
Regulatory tools to contain development are as important, because further sprawl may lead high public service maintenance cost. Concerns to congestion and high rents are not serious
Economic disincentives such as taxation are difficult due to the concern to more hollowing out of population. Interestingly, the city is providing direct subsidies not only to the residents who are moving into the areas, but also the private developers who do residential development in the areas. It maybe a costly tool, but the city estimates the cost will be paid in the long run.
To promote densification, regulatory tools are not as effective. They have to rely on economic incentives such as subsidies.
Strategic location of public facilities such as hospitals is very important for compactness.
In conclusion, the concept of compact city can be applied in the different regions, but adjusting the strategies and instruments according to the local context is crucial.
I will stop my presentation now, and I am happy to take questions. Thank you very much.