Proposal for government to study driving tax by mile

I’ve occasionally written about the gas tax (see here and here for recent examples) as well alternative forms of deriving tax revenue from driving (see here). There is a report that the Obama administration has proposed a new federal study that would look at taxing drivers per mile driven:

The Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive…

Among other things, CBO suggested that a vehicle miles traveled (VMT) tax could be tracked by installing electronic equipment on each car to determine how many miles were driven; payment could take place electronically at filling stations.

The CBO report was requested by Senate Budget Committee Chairman Kent Conrad (D-ND), who has proposed taxing cars by the mile as a way to increase federal highway revenues…

The administration seems to be aware of the need to prepare the public for what would likely be a controversial change to the way highway funds are collected. For example, the office is called on to serve a public relations function, as the draft says it should “increase public awareness regarding the need for an alternative funding source for surface transportation programs and provide information on possible approaches.”

I have several quick thoughts about this:

1. Doesn’t the government have to go to some method like this in the future with the advent of electric cars? If people are buying less gasoline (which is generally thought of as a good thing), then gas tax revenue will decrease.

2. If a tax like this were implemented, does this deincentivize purchasing electric cars or more fuel-efficient vehicles? Although you might pay less at the pump for gas, you would then pay more for driving longer distances.

3. How much of this is going to turn into a public relations battle? It is interesting that the proposed study would look into this. I’m sure a few things would worry some people:

a. How is the government going to use this tracking information since they will already be tracking the miles driven? Of course, this is potentially already an issue in states with toll transponders like Illinois and the IPass system

b. Is this a tax on mobility or on the American way of life (i.e. sprawl)? It would be interesting to see how this new tax might compare to existing costs for driving. Overall, this article reminds me that driving is not cheap – it may feel like freedom but it is expensive freedom.

4. Is a tax for miles-driven too broad? Different vehicle sizes put different stress on road surfaces. Should a tax also take this into account? Or is the difference between a Honda Insight and a Honda Pilot not significant?

5. There could be some interesting consequences of this. Would there be fewer road trips and driving vacations? Would the airline industry (and the rail/high speed rail industry) benefit? Would putting the costs into miles driven rather than tacked onto a gallon of gasoline make people think twice about purchasing a home further from their work?

Comparing inner vs. outer suburban growth

There are numerous types of suburbs (I think I now have at least 13 different types in one of my lectures in American Suburbanization) but one broad comparison includes looking at suburbs adjacent to cities (“inner-ring suburbs”) vs. suburbs on the metropolitan fringe (often referred to as “exurbs”). USA Today reports on some of the population trends in these two areas:

A new pattern is emerging this century. Most of the growth is happening on opposite ends of the suburban expanse: in older communities closest to the city and in the newer ones that are the farthest out.

“A few decades ago, all the growth was on the edge,” says Robert Lang, an urban sociologist at the University of Nevada-Las Vegas who analyzed 2010 Census data. “Now, there are citylike suburbs doing well on one side of the metropolis while conventional suburbs still flourish on the fringe.”

Close-in suburbs in the 50 largest metropolitan areas added 6 million people from 2000 to 2010, an 11.3% increase. The nation grew 9.7% in the same period.

At the same time, less populated suburbs on the outer edge grew even faster. They gained 6.7 million, a 24.5% increase.

DuPage County, Illinois is cited in this story as an example of suburban areas that are between these two extremes. Such “mature suburbs” had lower rates of growth as they “add[ed] 3.5 million people, a 7.8% increase” over the previous decade.

I like this emphasis on looking at the different rates of suburban growth depending on proximity to the city. There are a couple of stories that one could tell:

1. The suburban population is growing. I still am eager to hear the final 2010 figures that tell us what percentage of Americans live in suburbs compared to urban and rural areas.

2. The fastest-growing suburbs are on the metropolitan fringe. This is what might be considered typical suburban growth and/or “sprawl” as metropolitan regions continue to expand. It would be helpful to know how this 24.5% population increase over the last decade compares to previous decades.

3. Inner-ring suburbs are also growing quicker than the national growth rate. This may support recent findings that people want denser neighborhoods. It would be interesting to see how much of this growth is due to city dwellers moving just across municipal boundaries (for example, did those 200,000 people who left Chicago move to Oak Park or to Joliet?) or whether this population growth is from people from other areas, such as outer-ring suburbs, moving closer to the city.

4. So where does this leave mature suburbs? They are caught in the middle as they don’t have the open land for sprawl development but also are unlikely to have the denser or taller development of inner-ring suburbs. Most projects will either have to be small in-fill projects or bigger redevelopment projects. It will be interesting to see how these suburbs adapt: they were once outer-ring suburbs but will now have to make decisions about what direction to go.

h/t The Infrastructurist

Current trends in Finnish suburbs

This blog contains a number of posts about American suburbs but I am also interested in learning more about suburbs in other countries. Here are some insights into the changes taking place in Finland’s suburbs:

Urban geographer Venla Bernelius says that the same process that took place in other parts of Europe is now under way in Finland. A previous low level of immigration, combined with relatively small income disparities has delayed the phenomenon.

“The direction appears clear. Differentiation is increasing all the time.”

Experiences from other parts of Europe and North America suggest that it is very difficult to reverse a process of ethnic differentiation. Bernelius says that the time to act is now.

At present, conditions in Finnish suburbs are nowhere near those of slums or ghettoes in other countries.

However, Matti Kortteinen, professor of urban sociology at the University of Helsinki says that isolation from the population at large makes it more difficult for immigrants to adapt to Finnish society.

“The development harms people’s overall well-being”, Kortteinen says.

One reason for the trend is that immigrants often end up living in areas where there is much municipal housing. Many Finns who are long-term unemployed also live in these areas.

“The issue is not only about ethnic differentiation. The worst-off Finns and the worst-off immigrants live in isolated suburbs”, Bernelius says.

It might be helpful to compare these trends with what is taking place in American suburbs. To start, more minorities and immigrants are moving to the American suburbs (just as it sounds like Finland). More broadly, the American suburbs contain a variety of communities and suburbs, some very wealthy and some quite poor. But, the suggestion here is that immigrants and minorities become isolated in Finnish suburbs while we would tend to think the opposite in the United States. If people have “made it” in the US or have certain income levels, they tend to move to the suburbs. A more general European pattern works in reverse: the poorer segments of the population, immigrants and natives, live in suburbs away from the city and its wealth.

It will be interesting to see how Finland, and other European nations, adjust and respond to this kind of suburban population growth.

From gated communities to cameras and license plate readers

In the 1990s and early 2000s, there was an increase in scholarly work addressing the growing phenomenon of gated communities. Such communities were often criticized for at least giving the appearance of trying to withdraw from the world, being exclusive, and indulging the fears of suburbanites. So I wonder what these researchers might think about a community that wants to use cameras to read the license plates of everyone who enters their community:

Kings Point is one of the wealthiest villages on the North Shore, and residents want to keep it that way with the latest security…

To protect its 3.3 square miles, Kings Point plans to install 44 cameras and license plate readers at each of the 19 points of entry. The devices will take pictures of every vehicle and license plate and compare them to data bases.

“It will alert us to suspended registrations, felonies, stolen cars, order of protection, sex offenders, things like that,” Kings Point Police Commissioner Jack Miller said…

There’s no way of knowing whether the project will reduce crime. It may just send it off to other towns that are less secure.

Police said the project will cost $1 million, and will be paid for over several years. They also stressed only police will have access to surveillance information.

The article mentions one other key piece of information: there seems to have been a (small?) string of recent crimes in the community which has prompted the installation of cameras.

There may be some privacy issues here but I think some of same concerns about gated communities could be raised about this move. This is a wealthy community: according to Census data, there are 5,305 residents, the median household income (in 2009 dollars) is $144,000, the median home value is $1,000,000+, 55.3% of those 25 and older have a bachelor’s degree or more, and the community is 95.3% white, 3.4% Asian, and 3.1% Latino. Is this simply a move to protect the exclusivity of this community? While the article references plans in New York and London (presumably to fight terrorism), does a community like this really need to go to this level? If you look at some neighborhood/real estate websites, Kings Point Village seems to have quite a low crime rate (with a fun feature of this link being you get to see your odds of “becoming a victim” in whatever community you search for). This seems to me to be a much better question than whether police should have access to this information and therefore invade your privacy.

Additionally, it will be interesting to see what police do with this data. Which criminal offenses are enough to warrant attention? Is the goal of the program just to have a record of who was in the community so that they can be tracked down later or will there be more immediate actions taken? If the goal is to just to track down people after a crime has been committed, will residents be happy or will they suggest that the crime should have been prevented?

High fences indicative of a lack of community in suburbs?

Suburbs are often criticized for a lack of community: residents drive in and out of garages with little interaction. In searching for a missing girl in Cairns, Australia, several people suggest that the search is made harder by the high fences that separate suburban yards:

Cairns is losing its sense of community and neighbourhood spirit, with residents only finding time to help each other in times of natural disasters.

That’s the verdict of sociologists, politicians and police, who believe people in the Far North are living more isolated lives than ever before.

Fewer people know much about residents in their street, which potentially leads to an increased risk of crime.

And they say this trend can be most clearly demonstrated in, of all places, the proliferation of high fences in the suburbs.

At no time has this been more apparent than with the dilemma facing authorities as they seek information on the disappearance for teenager Declan Crouch and the murder of Erica Liddy.

Despite many pleas for help, vital clues from the public – the eyes and ears of Cairns – are yet to come.

A few decades ago, high fences in the suburbs were extremely rare, with neighbours often the best of friends, talking regularly over small mesh wire side fences in the backyard.

But experts say the fast pace of modern life mixed with a blend of fear, apathy and population growth is keeping residents hidden away from each other, behind those all-pervasive six-foot high fences.

I would suspect that the problem involves more than just fences. The fences are just a symptom of bigger issues – get rid of the fences and neighbors won’t necessarily know each other any better. And if there is a lot of media attention about these sort of stories (abductions, murder, etc.), why wouldn’t more suburbanites build fences to keep their yards and kids safe?

This story itself is illustrative of a larger question regarding suburbs: if they were simply designed a little differently, would there be stronger communities? This is a key claim of New Urbanists: moving cars and garages to a back alley, making streets more pedestrian friendly, and reintroducing porches to the front of houses will lead to more community. And with recent data suggesting that Americans do want to live in more walkable communities but still want to remain private, the verdict is still out on such design changes.

An argument for moving beyond cities/suburbs to walkable/unwalkable areas

A demographer makes an argument for moving beyond comparing cities and suburbs to looking at walkable and unwalkable areas which are not necessarily concentrated in either cities or suburbs:

Unfortunately, the census shines the light on the terms “city” and “suburb”–neither of which are the keys to understanding today’s built environment.

Core cities are comprised of pedestrian-oriented urban places, how Jerry Seinfeld lived, but they also include auto-centric suburban places, like the San Fernando Valley in the city of Los Angeles or the Palisades in the District of Columbia. Likewise, the suburbs of those core cities include classic subdivisions and McMansions, like the home of Tony Soprano, but they also include booming places like Old Town Pasadena, Reston Town Center near Dulles Airport outside D.C., and revitalized Jersey City and Hoboken, NJ, on the other side of the Hudson River from Manhattan.

The issue is where are walkable urban places being built, and they are being built in both central cities and the suburbs surrounding them. My 2007 survey of the walkable urban places in the top 30 metros showed 50 percent of them were in central cities and 50 percent were in the suburbs. In the metro area with the most walkable urban places, the Washington region, 70 percent of the walkable urban places were in the suburbs. These included Bethesda and Silver Spring in suburban Montgomery County, nine places in suburban Arlington County (like Ballston and Crystal City), and the newly built Washington Harbor in suburban Prince George’s County.

I haven’t looked at this 2007 survey data but it sounds interesting. Is there an easy way to demarcate walkable vs. unwalkable areas through publicly available data? While the Census definitions of and boundaries between cities and suburbs might be frustrating, the data is easy to understand and available to all.

At the same time, this argument is broader: it is about comparing denser versus less dense areas. Walkable areas work because residents can easily walk to or access essential needs like grocery stores, public spaces, eateries, and more. At stake here is whether less dense urban areas, like the north side of Chicago with its many single-family homes, are more similar to suburban areas (which range from inner-ring suburbs to very sparse communities on the suburban fringe) or to more central districts like the Chicago Loop.

I would think that suburban areas are more similar to each other in design and culture than to large portions of large cities. But if more suburban areas become more dense (and this may be what Americans want) and the importance of the core of metropolitan areas decline, perhaps this will change.

The current state of Zipcar

The Infrastructurist provides a quick overview of the current state of Zipcar. Some of the things you should know:

Zipcar went public last week, and how. On its first day of trading, the company raised $174.3 million and finished up 56 percent. All told, Zipcar sold 9.7 million shares of stock at $18 a pop and earned itself a market value of $1.21 billion, according to Bloomberg…

The 11-year-old company currently operates in 14 cities — 12 in the United States, plus Vancouver and London — and 230 college campuses. Its fleet stands at around 8,000 cars, and its membership at 560,000.

Robin Chase, the company’s founder, has been known to say: “Infrastructure is destiny.” The business world is more concerned with whether profits are destiny. So far, for Zipcar, they have not been. Last year the company generated about $186 million in revenue but still posted a net loss of roughly $14 million…

Zipcar’s biggest problem, writes the Wall Street Journal, may be growing competition from traditional car rental companies…

In the end Zipcar’s success may hinge on how transportation evolves in the near future.

This overview is pitched as a look at whether Zipcar is “a good investment.” This would be the business angle: the company has not turned a profit even as it seems like investors are at least somewhat confident that they could make some money down the road.

But there are plenty of other questions to ask (the answers to these questions would have an impact on the business side but are more interesting to me): is this company on to something regarding infrastructure and the use of cars? In recent months, there is some data to suggest Americans want to live in more walkable environments (which could presumably lead to less interest in owning a vehicle). Is this model sustainable even in these cities, let alone less dense cities? It would be interesting to see Zipcar usage data regarding less urban college settings (like the Zipcars at North Central College in Naperville, Illinois – currently, there is a Toyota Matrix and Toyota Prius available on campus) compared to the big cities. Ultimately, is a car-sharing model the end goal or a middle step between gasoline powered vehicles and vehicles of the future that will be powered by something cleaner and cheaper?

Chinese purchase “monster homes” in New Zealand

McMansion type homes are not just restricted to the United States. This article describes what Chinese buyers are moving into in New Zealand:

When veteran architect Ron Sang drives around the outer fringes of Auckland near Albany or Botany, he can always spot a house built for a Chinese buyer.

“Generally it has a high portico on the outside – a big, high, ostentatious-looking porch, usually double height,” he says.

“Generally above the door you have a window and through the window you can see chandeliers. Inside the door you’ll see a big, ostentatiously curved stairway. They like to show wealth.”

These grand mansions on small suburban sections – what sociologist Paul Spoonley, adopting a Canadian term, calls “monster houses” – have become the stereotypical Chinese footprints in our cityscape.

While the homes described here are called “monster homes,” this sounds very similar to what Americans would call McMansions with the traits of a big entryway, garish appointments, the goal of impressing a buyer or visitor, and large homes on relatively small lots in suburban neighborhoods.

There is an interesting discussion later in the article about Chinese immigration to and residential patterns of Chinese residents in New Zealand.

Update on affordable housing debate in Winnetka

The Chicago Tribune reports on Tuesday’s meeting in Winnetka regarding a proposed affordable housing ordinance. Here is how the comments at the meeting were summarized:

Rick McQuet, a Winnetka resident, said at the meeting that the affordable housing plan is intended to help young families and recent college graduates.

“That young family was me about 15 years ago, a new degree in hand and aspirations of becoming a member of a truly great community,” he said.

Northfield resident June O’Donoghue received applause after she said she opposes the proposal because it interferes with the housing market.

“Housing is affordable to the people who can afford it. That is a simple thing,” O’Donoghue said. “I think you need a referendum for people to vote to see if they want to go through all this social engineering.”

In recent weeks, the plan’s opponents have said it amounts to “hand-outs” for people with lower income that could result in Section 8 housing, decreased property values and increased crime. Supporters have lashed out at the opposition as bigoted, arguing that the plan would allow teachers, clergy and other employees to live in the community in which they work.

Some thoughts about these comments (which may or may not represent everything that was said at the meeting):

1. The first comment I included above is interesting in that it refers to a common understanding of affordable housing in suburbs: it is not about helping the disadvantaged in society but rather “young families,” “recent college graduates,” and often elderly residents of the community. While this may be a good goal for a community (particularly if residents want their own family members in these categories to live in the community), this is a different understanding of “affordable housing.” Perhaps this is what has to be done in many suburbs order to counter the plan’s opponents who are quoted as saying this is really about helping lower-income people. But overall, there are needs for cheaper housing in society beyond people who might fit a profile of a community but simply don’t have the money.

The plan seems to play to this more suburban understanding of affordable housing:

The proposed plan would apply to new developments, in which 15 percent of owner-occupied units must be affordable to households earning at least $75,000 per year, while 15 percent of rental units would be affordable to those earning at least $45,000. Current residents and senior citizens would receive priority, the plan says.

According to the Census, the 2009 median household income was $49,777 so the part of the plan for people making at least $45,000 is still drawing from near the top 50% of American incomes.

2. “Social engineering” is always an interesting term to think about. In finishing my taxes for this year, I was reminded that our tax code is riddled with all sorts of “social engineering” in terms of promoting or incentivizing certain activities. We as Americans value homeownership so we have a home mortgage interest deduction (which some argue should be taken away). We give deductions for giving money to charities. Is all social policy “social engineering” or just policies that some people don’t like?

Septic tanks and McMansions

A commentator in southern Maryland discusses how the construction of McMansions in more rural areas is related to septic tanks and social class:

Public sewer might have caught up to the suburbs, but now the suburbs are leapfrogging public sewer. Although it has been slowed by the national housing crisis, the trend has been toward rural ridge tops bristling with “McMansions” like plates on the spine of a stegosaurus. These homes have problems that transcend septic. They generally gobble up land 5 acres at a time, not to mention their associated energy and transportation inefficiencies. It is indeed hard to feel sorry for these developments when cracking down on septic systems.

But at the same time big and rich developments are being scrubbed, it would be a mistake to throw country people out with the wastewater. In rural counties, lawmakers have been merciless in their attacks on anti-septic proposals, which they view as a job killer and an assault on private property rights. One Frederick County, Md., delegate called the proposed Maryland ban the worst bill he’d seen in 25 years.

There is hyperbole involved, naturally, but the danger is that septic bans, if too harsh, could make country life unaffordable for people of limited means. That’s the economics of reduced supply. Land prices in many areas have already made it difficult for people raised in rural locations to stay there. It’s proper that all sources of pollution, including septic systems, be controlled. It’s also proper that country life be protected at. The goal should be inclusive of both ideals.

Sounds like a case of competing interests: being greener (and the story suggests that a quarter of the homes in the Chesapeake Bay watershed have septic tanks leading to a pollution issue) versus keeping more rural homes affordable.

This discussion reminds me of Adam Rome’s book The Bulldozer in the Countryside which addresses the history of septic tanks in suburbia. In the suburban boom after World War II, it was often cheaper for builders to include septic tanks as suburban communities struggled to provide sewers and sewage treatment plants. In my own research into the development of local suburbs, it wasn’t until the early 1960s that communities began to see the importance of sewers and treatment plants. Eventually, many communities found ways to help pass the costs on to developers and builders through sewer hook-up fees but these were originally contentious.