How do green policies stimulate local economies?

Portland area residents travel about twenty percent fewer miles every day than the average American. Whereas the vehicle miles per person have been increasing over the past decade in the United States, Portland's miles have been flat to declining. This fact has resulted in economic benefits, also called the green dividend. As a result of land use planning and related environmental policies, this green dividend has become considerable. The money that is not spent on transportation in Portland is spent on other sectors of the economy which have a much larger local multiplier effect, according to the author. This in turn stimulates local business. The commitment to green policies and the prevalence of green lifestyles has also attracted people and businesses to the region.

The author states that Portland's greenscape is the combined result of individual and collective decisions about how Portlanders want to live. The community has planned for density, arranged land uses more compactly and provided transit alternatives to a wide range of neighbourhoods. Citizens in turn have responded by driving less, taking shorter trips, using transit more often and purchasing more green vehicles, in comparison to other urban Americans. These choices have resulted in a tangible green dividend for the region.

The author therefore claims it is time to replace the cliché of green policy as sacrifice and instead recognise that for progressive regions and their residents, being green pays handsome economic dividends.

CEOs for Cities
ceos@ceosforcities.org
Joe Cortright

/07/2007

policy

Urban Policy > Urban environment

Land use