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Land Use Processes and Urban Sprawl

Final Report Summary - LUPUS (Land Use Processes and Urban Sprawl)

LUPUS project was conducted by Prof. Walid Oueslati between 1 August 2011 and 31 July 2013 at the Centre for Rural Economy at the University of Newcastle. The research project LUPUS had explored the economic processes under-pinning the phenomenon of urban sprawl. In particular, the project investigated the role of the spatial distribution of environmental amenities in urban sprawl and the influence of future land development on agricultural land values. Throughout the project, urban sprawl was considered as a simultaneous result of two mechanisms. On the one hand, are the effects of the behaviour of households and firms and the development patterns that they engender in suburban areas, while on the other hand is the influence of evolving land values and of developing agricultural and land use policies.

Urban sprawl is a priority issue for Europe's cities. According to a report by the European Environment Agency (EEA, 2006) throughout Europe in the last decade changes in land cover were mainly characterised by increases in urban and other artificial land development and forested area, at the expense of agricultural and natural areas. The anticipated growth of the urban population by 5% in the coming decade, will further fuel these trends.

Scientists, planners and policy-markers are becoming increasingly aware that appropriate decisions on urban development cannot be made solely at local level. This is especially important in a European context where more and more urban areas are becoming connected in order to realise common objectives.

In 2006 the European Commission launched a thematic strategy on the Urban Environment to help Member States and regional and local authorities improve the environmental performance of Europe’s cities. This Strategy is one of seven foreseen under the 6th Environmental Action Programme. Its goal is to facilitate better implementation of EU environmental policies and legislation at the local level. In addition, it aims to limit urban sprawl and encourage compact and polycentric approaches in order to reduce transport and energy costs, retain valuable agricultural land and natural areas, and protect landscape value, while limiting the negative effects of densification (see European Commission Website: Thematic Strategy on the Urban Environment ). The policy relevance of such urban environments is further highlighted in the EEA report on European cities and in DG ENVIRONMENT’s Thematic Strategy on the Urban Environment. From a research perspective related themes on the management of the urban environment are a focus of the FP7 Environment theme and urban sprawl is also relevant to the 2011 Environment work programme under the topic “ENV.2011.2.1.5-1: Sustainable and Green Cities”.

Urban sprawl has been increasingly recognised as a major force challenging quality of life in metropolitan areas in Europe. The European Commission places the issue of urban sprawl squarely in the realm of those areas where “the social and economic mechanisms leading to more land consumption have to be better understood’. LUPUS addresses these European concerns and should be a part of the research agenda of the European Commission. Economic research on urban sprawl can define policy measures that aim at curbing sprawl. We argue that environmental amenities and agricultural land values are important factors in the formation of development patterns. By constructing a theoretical model, the project has contributed to the international literature on urban sprawl and gave empirical insights into the European situation.

The project LUPUS has attempted to provide some theoretical and empirical answers to the questions posed by public policy makers in Europe. In particular, we have made several analyses on the role of agriculture and agricultural policies at urban fringe. Because agri-environmental policies may locally increase land scarcity and provide the environmental services demanded, it is reasonable to think that they have side-effects and may induce development locally.

Policy makers reluctant to place regulatory restrictions on sprawl but who are concerned about the loss of environmental quality or amenity from the development of the urban fringe, may wish to consider other policies that use the market to discourage the outward expansion of cities. Our results suggest that agricultural productivity, and by extension profits, can restrict development by driving up land prices around cities. Therefore the adoption of policies that have a positive impact on farm incomes on the urban periphary can have a direct impact on reducing the likelihood of outward sprawl, while at the same time potentially encouraging the development of non-urban areas within the LUZ boundary, therefore reducing urban fragmentation and making the city more compact. Within such compact cities, achieving low crime rates and maintaining a vibrant cultural life appear to be key considerations when encouraging residents to live close to the city centre rather than in the outer suburbs. These conclusions appear to offer some support for those who argue that planners should implement policies that encourage an urban morphology that maximises the quality of life for residents, while at the same time minimizing the environmental impacts of urban growth.

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