Study: Sprawl Costs the U.S. Economy $1 Trillion Annually

Sprawl is bad for public safety and health. Americans who live in sprawled neighbourhoods are between two and five times more likely to be killed in car accidents and twice as likely to be overweight as those in more walkable neighbourhoods. The report also describes evidence suggesting that smart growth reduces per capita crime rates by increasing "eyes on the street" and improve opportunities for at-risk residents.

Residents of compact, connected communities in the United States save more money and have greater economic mobility than they would in more sprawled, automobile-dependent neighbourhoods. Households in accessible areas spend on average $5,000 less per year on transportation expenses, and real estate located in smart growth communities tends to retain its value better than in sprawled communities, due to greater accessibility to services. These communities are also more inclusive for people who cannot drive: they offer easier access to schools, public services and jobs, and encourage mixed-income communities. Because of these factors, research shows that lower-income children tend to be much more economically successful if they grow up in smart growth communities.

According to Nick Godfrey, Head of Policy and Urban Development at the New Climate Economy, "The New Climate Economy’s new report on urban sprawl proves that there is both an economic and an environmental case for smart cities. Smarter growth leads to cities that are greener, more productive and more prosperous. Developing countries in the early stages of urbanisation can reduce urban infrastructure and transportation costs by learning from the mistakes made by developed countries. Ninety percent of urban growth between now and 2050 is projected to take place in the developing world. By avoiding urban sprawl, developing countries can stimulate their economic growth while avoiding climate risks."

About the Global Commission on the Economy and Climate: The Global Commission on the Economy and Climate was established by seven countries: Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United Kingdom, as an independent initiative to examine how countries can achieve economic growth while dealing with the risks posed by climate change.  Chaired by former Mexican President Felipe Calderón, and co-chaired by renowned economist Lord Nicholas Stern, the Commission comprises 24 leaders from 19 countries, including former heads of government and finance ministers, leading business people, investors, city mayors and economists. It has been advised by a panel of world-leading economists chaired by Lord Nicholas Stern that includes two Nobel Laureates. Research for the Commission has been carried out by a partnership of leading global economic and policy institutes, including the World Resources Institute (Managing Partner), the Climate Policy Initiative, the Ethiopian Development Research Institute, the Global Green Growth Institute, Indian Council for Research on International Economic Relations, LSE Cities at the London School of Economics and Political Science, the Stockholm Environment Institute and Tsinghua University.