A STRATEGY FOR SMARTLY MOVING CITIES BOLOGNA, 24th October 2014 Smart cities Exhibition Sustainable mobility in urban areas Innovative technologies and shared mobility: cities change paradigm 1

Agenda 1.WHAT IS A SMART/ STUPID CITY AFTER ALL? 2.WHAT IS AT STAKE? THE ITALIAN CASE 3.THE LEVERS FOR A STRATEGY OF SMART MOBILITY AND THE FLEXIBLE CONGESTION RIGHTS 4.THE WAY FORWARD 2

WHAT IS A « STUPID » CITY? 3

The three laws of cities inefficiency – The waste management 30% OF WHAT WE BUY, CAN NOT BE CONSUMED 30% OF WHAT COULD BE CONSUMED, IS THROWN AWAY 30% OF WHAT IS THROWN AWAY, IS NOT RELEASED TO A WDS 30% OF WHAT IS RELEASED TO WDS, IS NOT REUSED 4 76% ENERGY CONSUMPTION PROCESS

WHAT IS A « STUPID » CITY? The three laws of cities inefficiency The Housing HOUSE SPACE PER PERSON IS TWICE WHAT USED TO BE… … HEATING AND LIGHTNING IS USED FOR HALF OF THE TIME WHEN HOUSE IS EMPTY.... POTENTIAL ENERGY PRODUCTION WORTHY HALF OF ENERGY CONSUMPTION IS WASTED 87,5% 5 ENERGY CONSUMPTION PROCESS

WHAT IS A « STUPID » CITY? The three laws of cities inefficieny – The mobility..ARE USED FOR 20% OF THEIR CAPACITY… … TRAVEL AT AN AVERAGE SPEED WHICH IS 20% OF THEIR POTENTIAL SPEED.... USE A KIND OF ENERGY WHOSE EFFICIENCY IS 20% OF THE ONE AT THE FRONTIER.... ARE USED 20% OF THEIR USABLE LIFE 90% of km per passengers are used by privately owned cars which… 6 98,4% ENERGY CONSUMPTION PROCESS

SMART CITIES AS AN INFORMATION BASED, TECHNOLOGY ENABLED PROCESS TO REDUCE WASTE AND MAKE CITIES MORE ATTRACTIVE THROUGH HIGHER QUALITY OF LIFE 7

Agenda 1.WHAT IS A SMART/ STUPID CITY AFTER ALL? 2.WHAT IS AT STAKE? THE ITALIAN CASE 3.THE LEVERS FOR A STRATEGY OF SMART MOBILITY AND THE FLEXIBLE CONGESTION RIGHTS 4.THE WAY FORWARD 8

9 TOTAL COST PER PERSON.. Cost per citizen, yearly, euro, 2007 and 2008 Source: Vision & Value on Octotelematics and ACI, Istat, MISE, NYSE

10 … ENERGY BILL… Source: Vision & Value on Octotelematics data and ACI and MISE Cost per citizen, yearly, euro, 2007 and 2008

11..TIME WASTED.. Hours spent in cars in cities, yearly, 2007 and 2008 Source: Vision & Value on Octotelematics and ACI data

12..AND POLLUTION.. Cost of CO2 emissions per habitant, in cities, yearly, 2007 and 2008 Source: Vision & Value on Octotelematics and ACI data

13 Traffic Cost Model Source: Vision & Value Traffic Cost Model COST PER CAR NUMBER OF INHABITANTS TIME COST FUEL COST Average kms traveled Average speed Average kms traveled CO2 EMISSION COST Average cost of fuel per liter Average kms travelled Average CO2 emissions per km, differentiated by city * * + + * TOTAL COST city year week day time segment * * Average oil consumptions Average cost per CO2 tonne Monetary value per hour * NUMBER OF CARS PER INHABITANT * * Performance Levers *

Agenda 1.WHAT IS A SMART/ STUPID CITY AFTER ALL? 2.WHAT IS AT STAKE? THE ITALIAN CASE 3.THE LEVERS FOR A STRATEGY OF SMART MOBILITY AND THE FLEXIBLE CONGESTION RIGHTS 4.THE WAY FORWARD 14

SMART MOBILITY LEVERS 1.WHY DO HUMANS USE A 1 + TON VEHICLE TO MOVE 70 KG OF HUMAN BEING MEAT AROUND? 2.WHY VEHICLES MOVE SO SLOWLY ? 3.WHY DO HUMANS CONTINUE TO USE FOSSIL ENERGY TO FEED THE VEHICLE WHEN THEY COULD SPEND BETWEEN 90 AND 80 % LESS BY USING OTHER SOURCES OF ENERGY? 4.WHY THEN SUCH VEHICLES RESULT UNUSED FOR 90% OF THEIR LIFE? 1.SMALLER/ FLEXIBLE CARS/ VEHICLES 2.ELECTRONIC PARKING/ DRIVELESS CARS 3.ELECTRIC/ NO FOSSIL CARS 4.CARS SHARING/ POOLING 15 MEASUREMENT AND INCENTIVES

THE PROBLEM FROM AN ECONOMIST’2 POINT OF VIEW INTERNALIZED COST EXTERNALITIES ON OTHER INDIVIDUALS EXTERNALITIES ON FUTURE GENERATIONS 16

THE “PAY AS YOU CONGEST AND POLLUTE” PRINCIPLE (1) BAN (APPARENTLY MORE EQUITABLE AND EASIER TO DESIGN) INCENTIVES (FLEXIBILITY, RESOURCES FOR INVESTMENTS) BEHAVIOR CHANGING OPTIONS 17

18 Flexible congestion charge PRICING TRIP (Duration, mode – move or parking -, speed) PLACE (zones and distances from centres – of congestions, culture, administration) CAR (Dimension, consumption, footprint) TIMING (hour within day, day within week, month within year)

COUNTRIES CITIES PEOPLE (AND FAMILIES AND COMMUNITIES) THE “PAY AS YOU CONGEST AND POLLUTE” PRINCIPLE (2) 19

Agenda 1.WHAT IS A SMART/ STUPID CITY AFTER ALL? 2.WHAT IS AT STAKE? THE ITALIAN CASE 3.THE LEVERS FOR A STRATEGY OF SMART MOBILITY AND THE FLEXIBLE CONGESTION RIGHTS 4.THE WAY FORWARD 20

CRITICAL QUESTIONS FOR CHANGE TO HAPPEN How can we make (different segments of) citizens to buy change? How can we make industries (car and ICT makers ) leading part of the transformation? How can we assess benefitis and risks of something new? 21

THE WAY FORWARD 1.MEASURE THE PROBLEM 2.ENCOURAGE DIVERSITY 3.TRY CONGEST AND POLLUTE PAY MECHANISMS (FCR) 4.PUT TOGETHER THE FOUR QUADS FOR INNOVATION TO HAPPEN POLICY INDUSTRY RESEARCH OPINION MAKING 22