Cities, the Green Economy, and Urban Sustainability Strategies

The Urban Paradox: Density and Energy Efficiency

• Energy Consumption and Emission Statistics: Cities are responsible for consuming 75\,\text{%} of the world’s energy and generating 80\,\text{%} of its greenhouse gas emissions.
• The Density Paradox: Despite their high consumption and emission rates, cities are regarded as the greenest places on Earth in terms of efficiency. This is primarily attributed to their density, which facilitates greater energy efficiency and a marked reduction in automobile usage.
• Jane Jacobs' Contribution: Urbanist Jane Jacobs emphasized that density is vital for creating neighborhood vibrancy and civic engagement. However, the recognition of density as a tool for energy efficiency is a relatively recent development in urban planning.
• Policy Gaps and Local Action: In the absence of a comprehensive national policy in the United States prior to 2009, individual American cities took the lead in implementing strategies to reduce emissions, pollution, and fossil fuel reliance.     - Leading Cities: Notable examples include Austin, Boston, Chicago, New York, Los Angeles, Portland, San Francisco, and Seattle.     - Implemented Policies: These cities have adopted requirements for renewable energy and green buildings; increased green infrastructure (trees, green roofs, and parks) to improve air quality and manage storm water; and invested in infrastructure for public transit, cycling, and walking.
• Smart Growth Practices: Many cities have pioneered "smart growth" by:     - Providing incentives for development located near public transportation.     - Building around existing commercial centers.     - Preserving open spaces.     - Reusing polluted land (brownfield redevelopment).     - Promoting mixed-use development.

Cities as Economic Engines for Green Innovation

• Economic Centrality: U.S. metropolitan areas cluster most high-value economic activity. Because cities are the primary source of both carbon emissions and economic activity, they are uniquely positioned to harness innovation to solve climate issues.
• The "Green Bonus": If efforts to solve climate problems result in new, sustainable economic activity, it creates an additional economic benefit known as the "green bonus."
• Clean Tech Potential: There is an enormous, but often overlooked, potential for cities to:     - Build new clean-technology industry clusters.     - Improve production efficiency in existing manufacturing.     - Create well-paying jobs in construction, manufacturing, and advanced technology.
• Justice and Sustainability: A critical challenge of the 21st century is connecting social and economic justice to the climate change agenda, specifically achieving growth with justice.

Sectoral and Cluster Strategies in Economic Development

• Definitions and Distinctions:     - Sectoral Strategies: Typically focus on job creation.     - Cluster Strategies: Typically focus on broader economic development.     - Note on Usage: The terms are often used interchangeably in professional practice.
• Cluster Definition: A geographic concentration of interconnected companies linked by the markets they serve, products produced, shared suppliers, and common workforce needs.
• The Goal of Supply Chain Capture: Cities aim to identify existing strengths and capture as much of the industry supply chain as possible. For example, a city focusing on solar energy would aim to manufacture systems and component parts in addition to offering design and installation services.
• Comprehensive Approach Tools: Beyond traditional tools like facility siting and financing, sectoral strategies include workforce training, technology adoption, and upgrading manufacturing processes. This requires collaboration among city/regional offices, employers, colleges, community organizations, and unions.

Socioeconomic Impact and Urban Poverty Alleviation

• Social Justice Context: In the nonprofit sector, sectoral strategies focus on creating paths for low-income populations and systemic changes in labor markets.
• Poverty Statistics: Approximately $78\,\text{million}$ Americans (26\,\text{%} of the population) live in poverty. Mayors report that poverty rates have remained stagnant or increased over the last decade.
• Green Job Potential: Green jobs are viewed as a major opportunity for low-income individuals.     - Pollin’s Estimates: University of Massachusetts economist Robert Pollin estimates that out of $1.7\,\text{million}$ potential green jobs created over a decade, $870,000$ could be filled by individuals with a high school diploma or less.
• Strategic Realism: Cities often follow trends (e.g., IT in the 1980s/90s, Biotechnology in the last decade). However, not every city can successfully become a player in green economic sectors; success requires a strategic assessment of economic strengths and global/national trends.

Identifying Regional Competitive Advantages

• Picking vs. Creating Winners: Sectoral strategies involve investing in R&D, infrastructure, and demand creation based on a realistic assessment of advantages.
• Regional Examples:     - Detroit: Likely to focus on hybrid and electric vehicles rather than solar.     - Toledo: Becoming a solar player due to a historical advantage in glass technology.     - Cleveland and Milwaukee: Positioned to exploit the Great Lakes for offshore wind capacity.     - Pittsburgh: Potential to transform its building supply industry to serve green building and retrofitting markets.     - Germany: A global leader in solar and wind technology achieved through smart government policy despite a lack of natural resources.     - Los Angeles: Targeting clean-tech sectors by coordinating land use and waste management policies.     - Seattle: Linking public transit strategy to biofuels production.     - Portland: Manufacturing streetcars.

Framework for Green Sector Development: Three Key Strategies

• 1. Linking Strategies: Connecting sustainability initiatives to economic goals without necessarily creating new jobs. Examples include:     - Workforce development for youth and ex-offenders.     - Assisting existing businesses to adopt renewable energy or improve efficiency.     - Identifying ways to link current assets to green opportunities.
• 2. Transformational Strategies: Helping existing businesses expand into green markets or services, often through retooling manufacturing.     - Supply Chain Example (Wind): A wind turbine contains more than $8,000$ parts; local manufacturers can become component suppliers.     - Product Examples: Producers of window shades expanding into thermal shades; air-conditioning manufacturers replacing Freon with refrigerants that produce zero GHG emissions; and plastics producers creating biodegradable carbon dioxide-based plastics that decompose in less than one year.
• 3. Leapfrogging Strategies: The boldest approach, attempting to create an entirely new green technology sector. This requires deep sectoral understanding and often involves untested technologies (e.g., Cleveland’s offshore wind initiative).

Core Implementation Activities for Practitioners

To move these strategies forward, practitioners utilize a combination of the following eight activities:

1. Identification: Finding firms in the target sector that could expand or relocate to the area.
2. Strengthening: Supporting local firms through technical assistance, product line expansion, or coordinated purchasing.
3. Facilitation: Encouraging cooperation between university researchers and businesses to develop new products.
4. Financing: Developing mechanisms to fill capital needs not addressed by conventional sources.
5. Training: Creating employment and training programs to ensure a skilled workforce.
6. Regulation Assistance: Helping firms navigate and respond to environmental and other regulations.
7. Market Expansion: Using the city's purchasing power to create demand.
8. Addressing Weaknesses: Fixing local competitive disadvantages such as outdated land use regulations, high energy costs, or transportation inadequacies.