Search Results for parking

Landmark Incentives

by Sandy Ikeda The other day I was lecturing to my students about externalities and the Coase Theorem.  One of the examples I used came directly from the our textbook – Heyne, Boettke, & Prychitko’s The Economic Way of Thinking.  It asks what would happen if you tried to declare a large tree in your neighbor’s backyard a landmark in order to prevent her from chopping it down and depriving you of the valuable shade it casts into your backyard.  The answer is that it gives her an incentive to chop the tree down much sooner, before the landmarking can go through. It turns out that that’s exactly what some landlords in New York have been doing to avoid the severe building constraints imposed by the city’s Landmarks Preservation Law.  Of course they use jackhammers instead of chain saws, but the principle is the same.  According to this front-page article in today’s (Saturday 29 November) The New York Times: Hours before the sun came up on a cool October morning in 2006, people living near the Dakota Stables on the Upper West Side were suddenly awakened by the sound of a jackhammer.  Soon word spread that a demolition crew was hacking away at the brick cornices of the stables, an 1894 Romanesque Revival building, on Amsterdam Avenue at 77th Street, that once housed horses and carriages but had long served as a parking garage.  In just four days the New York City Landmarks Preservation Commission was to hold a public hearing on pleas dating back 20 years to designate the low-rise building, with its round-arched windows and serpentine ornamentation, as a historic landmark. (Hat tip to “The Volokh Conspiracy” via Mario Rizzo.) Now, regulations and private exchanges both have unintended consequences.  The difference is that the latter represent opportunities that […]

Euclid’s Legacy

While well intentioned, like many progressive interventions of the eary 1900s, zoning has contributed to sprawl (which has begun to be demonized by progressives over the recent decades) and served to inhibit the vitality and diversity of urban neighborhoods. The triumph of the core philosophy behind Euclid vs. Ambler later enabled destructive urban renewal projects using eminent domain to displace entire neighborhoods, the emergence of unfriendly NIMBY activism, and more recently helped give legitimacy to the decision in the highly controversial Kelo v. New London Supreme Court Case. Steve at Urban Review STL, a Saint Louis-based urbanism blog, wrote a great summary of Euclidean Zoning in the US. The solution to these urban ills was zoning. Cities would create “land use” maps segregating industrial, office, retail, and housing. Early efforts were often used to keep industry from spoiling more pleasant areas of town. In Ohio the Village of Euclid, a Cleveland suburb, enacted zoning in 1921 to keep Cleveland’s industry out of its jurisdiction. A property owner viewed the restriction on the future use of their land as a “taking” by the government and filed suit. The case, Village of Euclid, Ohio v Ambler Realty, went all they way to the U.S. Supreme Court. A lower court had ruled the zoning law to be in conflict with the Ohio & U.S. Constitutions. The Supreme Court, however, disagreed and reversed the lower court’s ruling. Their November 22, 1926 ruling declared use zoning as legal. Since then it has been known as “Euclidean zoning.” In the 82 years since the Supreme Court validated the zoning ordinance for the Village of Euclid, Ohio we’ve managed to take a simple concept — keeping out heavy industry — to a point beyond reasonable. Cities and their suburbs now over regulate uses on land. Residential areas, […]

Matt Yglesias fails to make the right case against highways

Matt Yglesias is one of the best mainstream bloggers on land use/transportation that I know of. As one blogger (who I don’t recall right now) once said, his urban planning and transportation posts could be blogs in their own right. However, it’s puzzling that in an article for Cato Unbound, he comes up with such a pathetic rejoinder to the O’Toole/Cox/Poole “vulgar libertarian” transportation cabal, who don’t seem to have ever met a road they didn’t like: Or consider the fact that Randall [sic] O’Toole is indignant about the prospect of public expenditures on mass transit systems, but appears to have little to say about public funding of highways. This, too, looks more like a case of narrow business interests than sterling free market principles. While Yglesias’ instincts are right – current transportation markets in America are highly distorted – the reason they’re distorted has little to do with the ways highways are financed. Based on some basic figures, Randal O’Toole concludes that the vast majority of road funding – over 80% – comes out of user fees. Now, of course there are still some subsidies there, but it’s really nothing compared to the subsidies that mass transit systems receive, which in America never even come close to covering operating costs, never mind capital expenditures. Now, there are some problems with the 80% number, such as the government’s favorable access to bond markets and the legacy of infrastructure that wasn’t paid for with user fees, but all in all, it’s hard to argue that roads have a subsidy advantage over mass transit. However, that’s not to say that Yglesias doesn’t have a point when he says that libertarians and conservatives have blind spots when it comes to how they see transportation. But the real government benefit that the road/car system […]

Happy Park(ing) Day 2008

I guess I must not be hip enough to have known about this beforehand, but there’s a very interesting citywide event happening here in New York today called Park(ing) Day. All throughout New York City, people are reclaiming parking spaces for their street-side enjoyment. It’s a very novel idea that helps convey a very important economic point: the opportunity cost of public parking spaces. Of course, the users are gladly feeding the meters, so who could complain? Who says we can’t let the market decide the highest-and-best use for the spaces?! parkingdaynyc.org Here’s a video from last year’s event:

Another On “Conservatives” and Urbanism

While I sympathize with the theme and agree with regards to roadway spending and “conservative” hypocrisy, a recent article in the progressive The American Prospect takes a narrow-minded view of politics and urbanism, while throwing around broad generalizations about evolution and global warming to support their assertions: The Conservative Case for Urbanism In fact, one doesn’t have to be concerned about climate change at all in order to support such policies; values of fiscal conservatism and localism, both key to Republican ideology, can be better realized through population-dense development than through sprawl. Tom Darden, a developer of urban and close-in suburban properties, said Wednesday, “I’m a Republican and have been my whole life. I consider myself a very conservative person. But it never made sense to me why we would tax ordinary people in order to subsidize this form of development, sprawl.” Darden told the story of a road-paving project approved by North Carolina when he served on the state’s transportation board. A dirt road that handled just five trips per day was paved at taxpayer expense, with money that could have gone toward mass transit benefiting millions of people. “Those were driveways, in my view, not roads,” Darden said. I agree with Darden. However, so-called “progressives” fall into the same narrow minded trap when they support public transportation as a solution to global warming that “conservatives” fall into when they try to protect their auto-centric lifestyle. Many are really calling for more of the same top-down overspending on transportation infrastructure that will require a taxpayer bail out at some time in the distant future. Where is the rational voice trying to slow down overspending on all energy-reliant, sprawl-creating, redistribution of productive resources? While existing transit may be less bad environmentally in comparison to highways when looked at from a […]

Skyscrapers as Economic Indicators

Ever hear of interesting economic indicators such as the correlation between the economy and length of skirts?  Here’s one urbanists should appreciate: the skyscraper index, which shows strong correlation between the completion of world’s tallest buildings and downturns in the business cycle.  Mark Thornton discusses the skyscraper index in his article, Skyscrapers and Business Cycles [or mp3 read by the author], which was originally published in the Quarterly Journal of Austrian Economics: The skyscraper is the great architectural contribution of modern capitalistic society and is even one of the yardsticks for 20th-century superheroes, but no one had ever really connected it with the quintessential feature of modern capitalistic history — the business cycle. Then in 1999, economist Andrew Lawrence created the “skyscraper index” which purported to show that the building of the tallest skyscrapers is coincidental with business cycles, in that he found that the building of world’s tallest building is a good proxy for dating the onset of major economic downturns. Lawrence described his index as an “unhealthy 100 year correlation.” Introduction Do Skyscrapers Predict? Table 1: Skyscrapers and Economic Crisis Figure 1: Skyscrapers and Economic Crisis Cantillon Effects in Skyscrapers Cantilloned Buildings and Business Cycles When the Skyscraper Index Is Wrong References Notes While macro business cycle theory is beyond my core strength in economics and the scope of this blog, this is a particularly interesting topic to me as I am an economics enthusiast with a passion for tall buildings.  The basic premise is that construction of worlds tallest buildings has strong corelation with economic downturns.  Construction of these buildings begin during times of economic expansion towards the peak of business cycles.  However, by the time the buildings are complete, the market has taken a turn for the worse.  Could the Burj Dubai be an indicator that tough times are […]

Urban[ism] Legend: Gas Taxes and Fees Cover All Costs of Road Use

No doubt, mass production of the automobile is one of the greatest innovations of all times. It has allowed for increased mobility of goods and people, which has greatly improved productivity and leisure. But, is subsidizing mobility at the expense of taxpayers taking things too far? In various blogs and forums, I frequently come across the argument that the costs of automobile use are fully (or mostly) internalized through gas taxes and fees. Often, this argument is used by free-market impostors against transit subsidies, or by automobile enthusiasts in defense of highway socialism. The usual argument is that the costs of roads and infrastructure are paid through gas taxes, and thus the users of the roads are funding what they use. This is a powerful and pervasive myth that will continue to distort the truth, unless serious scrutiny is given to the assertion. Let us first examine the validity of the assertion through studies of the explicit costs (actual dollars) of roads in the US and the taxes and fees collected. Next, we will look deeper and discuss the implicit costs (ie opportunity costs) of roads and automobile use as well as acknowledge externalities involved with automobile use. The Explicit Costs We can see the extent of the Urbanism Legend by looking at wikipedia: Virtually 100 percent of the construction and maintenance costs are funded through user fees, primarily fuel taxes, collected by states and the federal government, and tolls collected on toll roads and bridges.[citation needed] (The claim that only 56 percent of costs are funded by user fees is based on the misinterpretation of a table that applies to all highways, roads, and streets, not just the Interstate Highways.[citation needed]) In the eastern United States, large sections of some Interstate highways planned or built prior to 1956 are […]

Conservatives and Urbanism

Matthew Yglesias – Straight Talk on Gasoline on drilling and how conservative deviation from free-market principles has hurt the environment: Meanwhile, take something like the accessory dwellings issue. Here you have a bunch of regulations that make it illegal for people to live more densely. Illegal, in other words, to build the kind of communities where the gas price issue wouldn’t hurt so much. But there’s a movement afoot to change things. Similarly with minimum parking rules — regulations that interfere with the operation of the free market in such a way as to make it more difficult for people to live energy efficient lives. And again, there are people trying to change this. These things are regulatory barriers to solving our energy problems every bit as much as the ban on offshore drilling is. And conservatives are against regulation, right? Except the anti-drilling regulation is good for the environment and for coastal economies whereas anti-urbanist regulation is economically inefficient and environmentally destructive. Naturally, conservatives have chosen to aim all of their fire at anti-drilling regulations. And that’s the sort of thing that makes the conservative movement hard to take seriously — it’s an organized defense of existing power and privilege that now and again adopts principled rhetorical modes of various kinds but basically can’t be moved to act unless some lobbyists pay them too. Similar arguments could describe progressives too, but that (and drilling for oil) is a topic for other blogs… I agree about the inconsistent anti-market sentiments of conservatives when it comes to urbanism. Conservatives tend to embrace socialism when they can abuse government to create barriers that exclude others from their communities, but not when others benefit from socialism. (Public schools, free parking, government roads, exclusionary zoning, community centers, etc…) They are just fighting over different […]

Neighborhood Walkability Scores

A recent Wall Street Journal blog post refers to a website called Walk Score. Walk Score will let you know the walkability of a neighborhood based on the address you type in. The site also features ranking of cities and neighborhoods. Here are the city rankings: 1. San Francisco, CA 2. New York, NY 3. Boston, MA 4. Chicago, IL 5. Philadelphia, PA 6. Seattle, WA 7. Washington D.C. 8. Long Beach, CA 9. Los Angeles, CA 10.Portland, OR I assume San Francisco beat New York, because New York City includes the less walkable areas such as Staten Island. I can brag that I have lived in 3 of the top 4 most walkable cities: New York, Chicago, and Boston. (although I actually lived right accross the river in Cambridge, which I think still counts) I was also pleasantly surprised at how many of Milwaukee’s neighborhoods ranked above 90. How It Works Walk Score helps people find walkable places to live. Walk Score calculates the walkability of an address by locating nearby stores, restaurants, schools, parks, etc. Walk Score measures how easy it is to live a car-lite lifestyle—not how pretty the area is for walking. What does my score mean? Your Walk Score is a number between 0 and 100. Here are general guidelines for interpreting your score: 90–100 = Walkers’ Paradise: Most errands can be accomplished on foot and many people get by without owning a car. 70–89 = Very Walkable: It’s possible to get by without owning a car. 50–69 = Somewhat Walkable: Some stores and amenities are within walking distance, but many everyday trips still require a bike, public transportation, or car. 25–49 = Car-Dependent: Only a few destinations are within easy walking range. For most errands, driving or public transportation is a must. 0–24 = […]

How to Obscure Reality to Make Planners Seem Important

Regular reader, Bill forwarded this article from the New York Daily News calling it an “outstanding collection of anti-density and anti-market propaganda presented (as always) as objective journalism.” The article is riddled with misconceptions (aka Urbanism Legends) about zoning and development and is a perfect example of the quality of journalism that touches on city development issues referenced in today’s earlier post, Journalists and Cities. Let’s spot the more egregious statements from City and residents aim to keep Rockaway low-density: “The hope is to spur investment by maintaining low-scale development that fits into the area’s historic character. Similar zoning changes in Bay Ridge, Park Slope and the West Village along the Hudson River inspired great growth.” hmmm, restrictions inspire growth? Rockaway’s last zoning change came in 1961, allowing multifamily homes to be built where single-family homes once stood. The results were rapid development and streets butchered by an ungainly mix of large and small apartment buildings and homes. Wait, growth is bad? “We don’t have the space to be densely populated, and the owners of these big buildings don’t even live here” more space :: more density? not the equation I learned “Home prices should begin a steady increase if this zoning gets us better transportation.” This “zoning” that brings transportation sounds even nicer than the tooth fairy, and just as real. “I don’t know if the new upzoning of 116th St. will work, but I do know that the old, low-scale zoning on 116th St. did not bring in the amount of new businesses and investment required to improve the area.” Then again, density is good for retail… To ensure that parking does not become a problem, Gaska worked with Burden’s city planners to ensure that each new development has parking for at least 85 percent of the residents, […]