Every week we read more than we can write about on the blog. To avoid letting good commentary and research fall by the wayside, we’re going to publish weekly excerpts from what we’ve been reading.
Emily Badger and Christopher Ingraham, “Mapped: How hard it is to get across US cities using only bike lanes“, Wonkblog:
Bike commuting throughout the city is often like this: cobbled together out of a bit of bike lane here, an unprotected shoulder there, a scrap of sharrow and some silent pleas that cars won’t run you over. Bike lanes occasionally appear and vanish multiple times on the same street. Sometimes they last just a few hundred feet. It feels as if someone striped the city with dozens of quarter-mile commutes in mind.
Peter Mills, “Taxi fares: Feeling ripped off? Find out what your taxi should cost“, NZ Herald. Peter’s a co-worker of mine who does some really fantastic work developing apps and visualisation tools for transport data. I highly recommend checking out his taxifares.co.nz app!
Recently, Auckland found itself thrust into the global spotlight after being labelled as having some of the most expensive taxi fares in the world.
There are a number of reasons for these inflated prices, some of which fairly apparent, others slightly more abstract.
On the fairly apparent bench, we have issues such as Auckland’s sprawling nature and hilly geography.
A taxi that takes a patron from Britomart out to Te Atatu South has got a hefty return trip on their hands. Under ideal conditions, there would be a second patron waiting somewhere in Te Atatu, ready to take a trip back into Britomart, but this can’t be expected to happen all the time.
As a result, Auckland’s size and spread make for expensive taxi operation costs which are then are passed on to the customers. These kinds of issues can’t be avoided; population density and spread will always be factors in a city’s taxi fares.
There are other, slightly more subtle issues driving up taxi prices however.
Since deregulation in 1989, the New Zealand taxi industry has been operating in a supply and demand system. Under normal circumstances, such a system is self regulating, where the prices offered by the supply are controlled by the demand’s willingness to pay. Currently however, it would appear this system is not working as intended in New Zealand.
Nat Cheshire, “Do Not Rest: The Rebirth of Auckland“, speech to the 2014 Semi-Permanent design symposium:
It should be dawning on us that at this moment of our maturation our great opportunity is not the resolution of national identity that has so burdened this last century of art. The idea of New Zealandness in art must die. We must be past this already. Fantails are birds and ferns are plants and rivers are water and farmers kill sheep so we can eat their bodies. It’s not that these things don’t matter. It’s just that there’s so much that matters more. What matters most now is only the work, in its own terms.
Abandon your metaphors. We need to understand that the work we make here must not just be good here. It must be good everywhere. Fuck it, it would already be good everywhere. Our opportunity now is to engineer a reflexive cultural imperialism: to use our little cities as the launchpads from which to reach into those global cities that have the hubris to think they are finished, and start leading them rather than just learning from them.
In place of that world’s history and bigness and wealth, we have now laid out before us such unprecedented creative freedom. It is our collective responsibility to continually and aggressively exploit that freedom, and lead the world into its own future. For the first time in my life, though, I do not know what that future ought to look like. This — this not knowing — this is all I might ever have hoped for. In the absence of knowledge, I have found hope.
Noah Smith, “Piketty’s Three Big Mistakes“, Bloomberg View:
Economists combine a lot of different things into “capital,” such as machines, buildings and land. Rognlie points out that almost all of the increase in the value of capital over Piketty’s timeline comes from land, instead of from other forms of capital. In other words, it’s landlords, not corporate overlords, who are sucking up the wealth in the economy. It’s a dramatic, startling insight that was somehow overlooked before Rognlie came along.
This is a very different story from the one we usually think of. Didn’t we relegate all-powerful landlords to the dustbin of history when we got rid of feudalism? Haven’t productive corporations replaced rent-collecting landlords as the wealthy class in advanced societies?
Maybe not. Urban economists believe that as density increases, productivity increases. This is what is known as an “agglomeration economy.” But as it becomes more valuable for people to work and live near each other, the value of central locations — of land — goes up. Landlords, who are producing no more than they used to, but who were sitting on advantageous locations, reap huge benefits.
The New Climate Economy, “Release: urban sprawl costs US economy more than $1 trillion per year“:
Sprawl increases the distance between homes, businesses, services and jobs, which raises the cost of providing infrastructure and public services by at least 10% and up to 40%. The most sprawled American cities spend an average of $750 on infrastructure per person each year, while the least sprawled cities spend close to $500. In its Better Growth, Better Climate report, the New Climate Economy has found that acting to implement smarter urban growth policies on a global scale could reduce urban infrastructure capital requirements by more than US$3 trillion over the next 15 years. […]
Sprawl is bad for your 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.
Residents of compact, connected communities in the United States save more money and have greater economic opportunity 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.
Matthew Yglesias, “Neighbourhood walkability is good for the commercial real estate bottom line”, Vox:
Neighborhood walkability has been a huge asset for commercial landlords during the recovery from the 2008 recession. Moody’s and Real Capital Analytics have a cool dataset that lets you break down commercial real estate prices by WalkScore.
You can see that whether it’s in suburbs or in central business districts, prices have rebounded from the recession much more strongly in walkable areas than in car-dependent ones:
Graeme Stewart-Wilson et al, “What is the full cost of your commute?” Moving Forward:
In the absence of mechanisms that force us to directly pay for the broader impacts of how we travel, we tend to underestimate the total cost to both ourselves and to society of different modes of transportation. This influences our daily decisions about how to commute − but also our views on whether or not to support proposed transportation investments on the referendum ballot.
For example, the price tag of replacing the Pattulo Bridge or building rapid transit in Surrey is frequently mentioned when discussing the referendum. But we don’t consider the added cost of waiting longer when busses are full. We don’t account for the increased life expectancy we gain from cycling, even though our decision to commute by bike means actual savings to the healthcare system. The Cost of Commute Calculator even assigns a value to the discomfort of riding a packed bus. After all, commuting on crowded public transit feels longer than the same time spent walking on a pleasant day.
The tendency to underestimate is most striking when calculating the cost of driving. The amount we pay through taxes for direct costs like road infrastructure and indirect costs like pollution, accidents and noise is significant.
A couple of thoughtful pieces from Bob Dey below. Firstly:
Council budget submissions a mockery of sensible planning
The best evidence that we live in a society of unbalanced thinkers is the graph showing the levels of submission for investing in Auckland. It’s a growing city, but there was a strong show of opposition to spending on transport. Every concrete jungle needs breathing spaces, children need parks to play on, yet opposition outweighed support for spending more on parks & community.
The strong show of opposition to spending on economic & cultural matters is an indication that plenty of Aucklanders don’t want a city that plans for economic growth instead of just letting it happen, and celebrating cultures is not something for the public purse.
But the huge opposition to spending more on governance & support shows how the council, in its first 4 years, has managed not to take everybody with it on a path forward. You can say there will always be malcontents, but this almost entirely negative vote stands out.
Bob also comments on some US articles about distant city fringe suburbs (or “exurbs”) vs inner cities, and the apparent resurgence of the fringe areas. He makes the point that these things are often seen as a dichotomy, which they’re not, and also that we need to think about the opportunities in between the inner city and the outer edge, and with a scale that falls in between urban sprawl and high-rise apartments.
What disturbs me most about these types of article, and also about much of the intensification v sprawl debate in Auckland, is the lack of thought given to suburban intensification – the how, not whether.
Apartments above or beside retail are starting to appear around some suburban centres [in Auckland]. These developments can be far better than the “all or nothing“ mindset because they provide for people to stay in their communities – perhaps single parents, the elderly, and also young singles, taking advantage of beaches, sports clubs, walking to shops and, importantly for urban activity, shorter commutes or easier access to public transport.
They can also, unfortunately, be stern reminders of our utilitarian, cost-dominated developer streak, as in boutique retail at ground, upstairs apartments, plenty of parking, concrete everywhere…. Soul, nowhere.
Both the exurb & intensification thinking here needs to be far more than simply plonking down a home. The equation has to include good access to jobs, shops, schools & amenities – integrated solutions.
DW, “Germans want fewer cars in built-up areas, more public transport“:
Close to 82 percent of Germans who partook in the Federal Environment Agency’s biennial survey indicated they wanted town planners to focus less on private car transport and more on pedestrians, cyclists, car pooling and other means of public transportation.
Regarding the figures released on Monday, Germany’s Environment Minister Barbara Hendricks said, “We need a new concept of mobility in towns,” adding that reducing noise and fine-particle pollution should be a priority.
Germans don’t seem to be that different to Aucklanders, incidentally. As Matt wrote earlier in the week, consultation on Auckland Council’s Long-Term Plan found that people overwhelmingly wanted more spending on public transport and active modes.




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It would be interesting to see what they are basing their analysis on when they say cycling saves money. There is plenty of evidence that shows healthy lifestyles don’t actually save money for the taxpayer, in fact quite the opposite. Eg
http://www.forbes.com/sites/timworstall/2012/03/22/alcohol-obesity-and-smoking-do-not-cost-health-care-systems-money/
I would like to spare any other reader the time to read that article. Just nonsense. Basically it says that unhealthy people die younger so save money to the state compared to healthy people. Problem is that they don’t die much younger, because we spend a lot of money on them. Also, healthy old people are not only a cost to society but can also be a resource. Free childcare, volunteering etc.
Eh? He was quoting academic studies. I am interested in the studies the people above used . I couldn’t easily find them on their site.
That thesis doesn’t get anywhere near passing the sniff test. Those that die younger from the diseases of inactivity and excess typically spend months and years being expensively and repeatedly propped up by the health system. We know that alcohol use places huge stress on all public agencies, from health, social services, police, mental health, family violence, traffic violence ACC etc…. don’t even start on the costs of smoking. A few years of additional Super for very healthy folk that die in their sleep after leading blameless and useful retirements [ok I’m idealising a little here; of course you can still get nasty diseases no matter how you live] could hardly get anywhere near these social costs.
Cynical libertarian claptrap.
I am pointing to an article that points to a published study. Not the only one. Why are you dismissing it out of hand without providing a counter example?
Note the study doesn’t account for super, just direct healthcare costs. If you included super in the calcs it would be unequivocal.
I have read somewhere that the majority of healthcare that the average person receives is in the last few years of their lives.
We should implement health improving measures for there own value not for some monetary saving to the taxpayer.
Doesn’t even pass the “been dead for a month” sniff test either.
Your article is someone’s “opinion” of their interpretation of one study. Doesn’t make the opinion right, or the conclusions he has drawn valid. And it isn’t “Forbes” opinion either.
As for whole of life costs of healthy v unhealthy whole of life costs, you have to use a NZ context here as overseas examples won’t stack up the same due to the likes of ACC, our public health system, the way we buy and fund drugs and our entire health system in general. Even a UK example is pretty out of sorts for a NZ context.
This document http://www.victoria.ac.nz/sog/researchcentres/health-services-research-centre/docs/downloads/CE-Obesity-Prevention-Full-Report-publish.pdf has a list of the annual cost of healthcare for a “good” health person to the year 100 in $NZ (2010 $).
The figure only gets above the $6,000 a year cost when you get over 84 years old. And tops at $18,700 in years 90-100. The average up to age 55 is about $1500 a year ($NZ).
Add up those numbers and the “true” cost will be well under $600,000 .
But in a NZ context the cost of treating the lifetime of Type-1 diabetes is quoted by the NZ Medical profession at over $1M (NZ) over the lifetime of the patient.
To compare with your quoted numbers of $NZ6,000 per year “annual” cost over a lifetime costs ($3,000 Euro) for a “healthy” person who lived to 100 years, you’d get $NZ600,000 maximum cost.
And even that $NZ 6,000 “annual” cost for a healthy person is wrong in a NZ context (way too high), as for most people the last year of their life is where the majority of *their* lifetime health system costs are incurred.
But if you amortised that over their entire life, you might get a figure of maybe $3,000 NZ.
But lets assume for argument that the $6,000 number it is close, even so it means your numbers/assertions simply don’t stack up whe nyou compare good health people versus others with these diseases.
The indirect costs run at about 10 times the costs of “direct” costs, so even if the $6,000 a year figure is right, the indirect costs to society (lost time, not being at work etc) would run at, at least $60,000 a year.
If someone is “well” they don’t have those indirect costs being incurred do they?
See http://www.treasury.govt.nz/publications/research-policy/wp/2010/10-04/twp10-04.pdf
So keeping people in good health for as long as possible makes sound economic sense.
I am sure that Google can find you good local NZ evidence relevant if you look I can’t be bothered doing all your research for you.
Greg N, having you compare absolute costs between NZ and the study location is not particularly helpful. You have compared costs to a figure quoted (without reference) regarding the costs of a person with diabetes. This is the wrong comparison. Not every obese person gets diabetes, it is about averages. Are you a public health finance expert? Why the antagonism? Here is an NZ economist on the study if you think it was misinterpreted at the link:
http://offsettingbehaviour.blogspot.co.nz/2013/01/social-costs-of-healthy.html
Regarding indirect costs, be careful. These are mostly privately borne costs (lower productivity, absenteeism etc) so aren’t policy relevant and certainly aren’t relevant to the current discussion which is about costs to the taxpayer
Type 1 diabetes is an autoimmune that occurs when the body attacks its own insulin producing cells in the pancreas. It usually starts in small children and to stay alive they need regular doses of artificial insulin. Its cause has nothing to do with their lifestyle or diet and it is certainly not caused by obesity.
Why would you take a taxi from Britomart to TS when you could take a train to Henderson? Obv this will be even better post CRL. But I guess the point is there are trips when taxi is realistically the best option but it’s unlikely the example provided is one of them.
Regarding the Bloomberg article on landlords, here’s a quote from someone who is obviously an unrecontructed socialist:
“Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains — and all the while the landlord sits still. Every one of those improvements is effected by the labour and cost of other people and the taxpayers. To not one of those improvements does the land monopolist, as a land monopolist, contribute, and yet by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived.”
It is Winston Churchill. A land tax anyone?
Yes, or at least stop subsidising the aforementioned infrastructure. E.g. Transport into central auckland is heavily subsidised, an area with NZs highest land prices.
Specious argument.
Its not just central Auckland, or roads into Auckland either – all land adjacent to all roads, electricity, and the 3 waters is worth a lot more than any land that is not.
It what is called “buildable land” by politicians.
Therefore all such improvements that create buildable land, subsidises those landlords/owners who are not paying their way.
On your argument we should stop “subsidising” all landowners that have land with such improvements on tap.
so at the very least put their rates through the roof to eliminate the subsidies right?
Er? Transport to the suburban fringes is heavily subsidised. All transport is subsidised, or rather paid for socially from taxes and rates. You cannot single out one area and pretend the others are self funding. In fact the dense central areas cross subsidises the sprawl at the fringes.
Sure, all transport is subsidised (well some isn’t). I just gave an example that might be of interest to readers of this blog.
Your Sunday Reading list missed a good article in the Fairfax press in Australia, “How treating pedestrians better will boost the economy”
“Politicians are forever talking about new roads and, sometimes, new railway lines. But what about footpaths?
Walking is by far the most important mode of transport in our most valuable economic locations – especially the CBDs of Sydney and Melbourne. But not nearly enough attention is given to how efficiently pedestrians can make their way around these key business hubs.
In some cases the benefits of pedestrian access is obvious. Sydney’s Pitt Street Mall has become one of the world’s most valued retail strips due in most part to its pedestrian friendly nature. Despite rents of more than $8800 per square metre per year, more and more shops have chosen to relocate to Pitt Street from elsewhere in the city. Retailers are also prepared to pay premium rents in Melbourne’s Bourke Street Mall because of all the foot traffic. Those high rents highlight the success of big city pedestrian malls and the productivity benefits they offer to retail businesses.
But retail is only one reason for making CBDs more pedestrian-friendly. Economic change, especially the growing importance of knowledge-based firms, has made the walkability of business centres all the more important. The exchange of ideas and information is crucial for the productivity of knowledge industries. That’s one reason why knowledge-intensive businesses – like finance, insurance, IT and professional services – tend to cluster together in CBDs. Much of the sharing of ideas and knowledge takes place face-to-face. And those face-to-face encounters are very often the result of a walking trip. It might sound old school but walking is vital to our premier business hubs.
So how efficient are the pedestrian flows around our CBDs?
New research by consultancy SGS Economics and Planning has sought to answer that question. A project called “Walking to global competitiveness” deployed methods normally used to assess the efficiency of road and rail networks to evaluate pedestrian flows in Melbourne’s CBD. Data was also collected on pedestrian movements in inner Sydney.
The findings reveal just how important walking is to Australia’s biggest CBDs. The researchers discovered that more people cross Melbourne’s Collins Street each day than drive over the Westgate Bridge, one of the city’s key traffic arteries. It was also found that on a typical weekday 630,000 trips are made to Sydney’s CBD but within the CBD there are 1.17 million daily walking trips.
The study identified big variations in the routes available to CBD walkers. Some walkways allowed pedestrians to travel at a maximum average speed of 4 kilometres an hour. But others allowed speeds of just 1 kilometre an hour because of obstacles like unfavourable traffic light phasing. Those slow pedestrian routes have a significant impact on productivity. SGS Economics and Planning concluded Melbourne’s economy could be boosted by $1.3 billion a year if the flow of pedestrians around the CBD was optimised. Terry Rawnsley, an economist at SGS Economics and Planning, said a similar improvement in Sydney’s CBD could yield a $2 billion lift to the city’s economy.
“If you increase connectivity your city becomes more productive,” says Rawnsley. “It’s a bit like having more broadband width.”
The frustration caused by congestion has pushed transport infrastructure to the top of the national agenda. The costs and benefits of road infrastructure is routinely modelled to inform investment decisions but those techniques are rarely used to improve pedestrian infrastructure.
And yet a recent Grattan Institute report found that improvements in pedestrian flows can often be achieved at low cost. It points out that a “walking audit” in London prior to the 2012 Olympic Games used specialised software to highlight areas with the worst walking conditions. More than 100 “quick wins” were identified where inexpensive improvements could be made.
Vehicles often take precedence over pedestrians in our CBDs even though it’s not clear that is the most economically efficient option. Another simple reform would be to require developers to incorporate walkways through all big city projects.
The economics of walking deserves far more attention.”
Yeah fully. And Transit investment is the way to both extend the reach of the walker, and clear the streets of space eating cars. See the CRL Showcase for how that investment underground allows doubling of footpath widths on Customs and Albert and the closure of lower Queen St entire to cars and buses. http://greaterakl.wpengine.com/2015/04/11/the-crl-design-showcase/
Great article… thanks for the reference! If you provide the link, I’ll include it in next week’s Sunday Reading post.
I know Terry, incidentally. First-rate guy; very sharp on agglomeration economies and transport provision.
Peter, here is the reference I should have included:
http://www.theage.com.au/comment/how-treating-pedestrians-better-will-boost-the-economy-20150411-1mik45.html