This paper, produced through the New Climate Economy Cities Research Programme, identifies three groups of cities that will be particularly important for the global economy and climate: Emerging Cities, Global Megacities and Mature Cities. When combined, these 468 cities are projected to contribute over 60 per cent of global GDP growth and over half of global energyrelated emissions growth between 2012 and 2030 under business as usual. Furthermore, this paper reviews the contribution of small urban areas to economic growth and carbon emissions. Finally, this paper explores the potential of the 3C model to maximise the benefits of urban growth while minimising the costs in emerging cities, global megacities and mature cities, and reviews examples of cities where elements of the model have already been implemented.
This paper, produced through the New Climate Economy Cities Research Programme, first examines the importance of the third pillar of the 3C model: coordinated governance. Governance will be particularly crucial in many emerging cities where current levels of capacity are often insufficient for implementing the policy programmes needed to move towards compact urban growth and deliver effective, connected infrastructure. Four elements of coordinated urban governance are essential: (1) multi-level governance with effective coordination of national, regional and city policies; (2) city leadership and financial authority; (3) transparency and accountability; and (4) policy integration at the local level. Municipal governments can also use international and regional networks of cities to transfer knowledge and innovation more effectively. Furthermore, this paper reviews the most promising policy tools for delivering the 3C model. These include: (1) planning policy instruments; (2) pricing instruments; and (3) finance mechanisms.
This paper conducts a comparative analysis of the results of five recently completed studies that examined the economic case for investment in low-carbon development in five cities: Leeds (UK), Kolkata (India), Lima (Peru), Johor Bahru (Malaysia) and Palembang (Indonesia). The results demonstrate that there is a compelling economic case for cities in both developed and developing country contexts to invest, at scale, in cost-effective forms of low-carbon development.
As economic hubs, cities also have a crucial role to play in mitigating global climate change. The Intergovernmental Panel on Climate Change (IPCC) has found particularly great opportunities in fastgrowing urban centres in developing countries, but cities at all levels are pursuing climate action. Many of the measures they are choosing – e.g. retrofitting buildings to be more energy-efficient, improving public transit, promoting biking and walking, encouraging denser development – have also been shown to have broader economic and social benefits. This paper looks at this issue in the other direction: how cities’ economic development strategies are likely to affect global greenhouse gas (GHG) emissions. It examines policies and actions that are already widely used by cities to advance economic development and competitiveness, assess the evidence on their net GHG impact, and identify key issues that cities may want to address if they wish to align their climate and economic development goals.
Shifting our fossil-fuelled civilisation to clean modes of production and consumption requires deep transformations in our energy and economic systems. Innovation in physical technologies and social behaviours is key to this transformation. But innovation has not been at the heart of economic models of climate change. This paper reviews the state of the art on the economics of innovation, applies recent insights to climate change. The core insight is that technological innovation is a path-dependent process in which history and expectations matter greatly in determining eventual outcomes.