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Tag Archives: environmental Kuznets curves

Trees Reflect Urban Wealth

In one NPR report on trees and income inequality, a senior online NOVA editor showed his sky shots (below) of Piedmont CA and nearby West Oakland. Piedmont, which he described as a “wealthy enclave” was quite green while West Oakland “known to have been very poor and lower class,” was silvery.

The green appears to represent affluence because richer cities and households can afford trees. Improving air quality and property values, trees also control drainage, reduce noise, and generate biodiversity. Some studies have even indicated that trees reduce stress.

Does that mean we can use trees to measure urban affluence?

I did find one empirical study that relates urban “forests” and income. In cities, as income rises, at first the tree population dips because housing, factories and other structures are replacing natural habitation. However, once income reaches a threshold, (at $39,000 in this 2006 paper), we have a reversal whereby the trees start to return. Why? People want to live in a more pleasant and natural environment. There actually is a curve– an Environmental Kuznets Curve–EKC–that illustrates the initial disappearance and then subsequent proliferation of trees in cities.

Several final facts…

US cities are losing their trees. According to the USDA Forest service, our urban tree canopy is shrinking by about 4 million trees a year. Among the 20 cities studied, tree cover ranged from a high of 53.9% in Atlanta to 9.6% in Denver. However, the loss was greatest in New Orleans, Houston and Albuquerque.

And a quote from the USDA Forest Service…

“…urban trees are the hardest working trees in America.”

Sources and Resources: Thanks to this marketplace.org report for the idea that trees connect to affluence and for the photographs that follow. I did then find some academic confirmation here,  facts from the USDA Forest Service, and NYC’s million trees initiative. Also, you might enjoy this EconLife post on urban affluence and one-way streets.

Piedmont

An Affluent Community, Piedmont California Has Many Trees

 

 

 

 

West Oakland

Less Affluent, West Oakland Has few Trees

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19th Century Urban Transport Was An Environmental Problem

Sometimes green incentives can have unintended consequences.

Our story begins in an airport. About to board a flight, an environmentally concerned individual purchases “carbon offsets.”  Yes, that flight will pollute the air but the offset could be used to fund a project that reduces emissions. The offset purchase is the incentive. It encourages others to pollute less if the payment is more than the reduction costs. Yes?

Maybe not.

Unfortunately, firms that produce air conditioning coolants figured out how to use payments for polluting less to pollute more. Located in countries ranging from India to Mexico, plants producing gases used in air conditioning and refrigeration started making more coolant than they otherwise would have produced. Then, by capturing and destroying harmful waste gases, they could get thousands of “waste gas credits” from the United Nations. Selling the credits made them millions of dollars. Meanwhile the buyer of the credits could now legally pollute. The result? Some of the producers are overproducing the coolant to get huge waste gas credit revenue.

Another air conditioning story that we looked at recently also had unintended consequences. Hoping to reduce pollution, Mexico subsidized low emission air conditioner and refrigerator purchases. Because they were so cheap, though and because electricity was also inexpensive, people ran them longer than the inefficient units they had previously used. The result? More emissions.

But the last chapter of our story has a happy ending. Its unlikely title is the Environmental Kuznets Curve. Connecting more affluence in poor nations to pollution, the curve reflects data showing that as people become richer, first their country pollutes more and then it pollutes less. Why? More affluent households have greater political power. More affluent countries have the resources to lower pollution.  The turn around point seems to be average annual income of $11,000 in 2007 dollars.

In a second happy ending, the European Union has announced that it will prohibit coolant producers from purchasing waste gas credits for manipulated emission reductions. I am concerned, though, that people will outmaneuver whatever solution regulators figure out as a replacement.

This academic paper and this paper tell more about Kuznets Curves. My facts about coolant producers are based on this excellent NY Times article. I also recommend 2 Teaching Company lectures from economist Robert Whaples about pollution.

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