GreenDividend

GreenDividendJoseph Cortright, Impresa

September 2007

Cities facilitate less driving, saving money and stimulating the local economy

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20.324.3

Total savings per year $2.6B

Median commute miles per day for 33 most populous US metro areas

Average daily miles for Portland area commute

$15 per hour

$1.5B100 million hours less traveled per year saves

Estimated value of time spent commuting

2.9 B

$1.1BMiles saved compared to median

Transportation costs saved compared to median

How urban form and transit enable people to drive less, saving money that gets spent

locally, helping foster urban economic growth

Portland’sGreen Dividend

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Does being green pay?

Is conservation just noble self-sacrifice; • well-intentioned but un-economic?

Or does it make a difference to the local • economy?

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Green Portland

One of the nation’s greenest cities• City policy to limit greenhouse gases• Land use and transportation policies•

-Higher density -Transportation alternatives -Housing choices

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Metropolitan VMT Per Capita, Per Day

Key Measure: Vehicle Miles Traveled

0 10 20 30 40 50

P o rt la nd

M e d ia n

Source: U.S. Department of Transportation

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Monetary Savings

Portland: 20.3 miles per person per day• Median Large City in US: 24.3 miles•

Annual savings to Portland area: -4.0 fewer miles x -365 days x -2.0 million metro population

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Time SavingsTravel 2.8 billion fewer person miles per year• (2.2 million people * 365 days * 4 miles)• Value of travel time estimated at $15/hour• Savings in travel time•

-100 million hours (at 27 miles per hour) -Value of time saved: $1.5 billion

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Corroborating Evidence

Consumer Spending• Vehicle Purchases• Gasoline Sales•

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Portland spend less on transportation

0 % 5 % 1 0 % 1 5 % 2 0 % 2 5 %

(Source: Impresa analysis of Department of Labor data)

Portland15.1% of consumer expenditures

Average of 26 Largest Metro Areas19.1% of consumer expenditures

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Portland residents buy fewer new cars

(Source: Impresa analysis of National Automobile Dealers Association data)

Oregon 46 Vehicles per 1,000 Population

United States55 Vehicles per 1,000 population

0 1 0 2 0 3 0 4 0 5 0 6 0

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Portland residents buy less gasoline

(Source: Impresa analysis of Energy Information Administration data)

Oregon 53.5 million BTU per capita

United States59.6 million BTU per capita

0 2 0 4 0 6 0 8 0

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How Portland does itMore Compact Development•

-Urban Growth Boundary -Less Sprawl

Alternatives to Auto Travel• -Transit -Bicycling

Personal Choices•

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Compact Land Use

Portland’s • Urban Growth Boundary

Limits on • exclusionary zoning

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0 2 4 6 8 1 0 1 2

P o rt la nd--S a le m , O R --W A C M

Portland’s jobs sprawl less than most US metros

Job Sprawl Index:Ratio of Jobs 10 to 25 miles From CBD to Jobs less than 3 miles from CBD

(Source: Impresa calculations from County Business Pattern data)

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Less Economic Segregation

Economic Segregation Index:(Percent of High income households that would have to move to balance high and low income households to regional average in each neighborhood)

Source: Lewis Mumford Institute)

0 2 0 4 0 6 0 8 0 1 0 0

P o rt la nd-Va nco uve r, O R -W A P M S A

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Portland residents ride transit more

(Source: American Community Survey, 2005)

Portland 13.3% Commute by Transit

United States6.5% Commute by Transit

0 % 5 % 1 0 % 1 5 %

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Portland residents seven times as likely to bicycle to work

(Source: Census Bureau, American Community Survey, 2005)

Portland 3.5% of commuters bicycle to work

Average for Cities of 85,000 plus0.4% of commuters bicycle to work

0 % 1 % 2 % 3 % 4 %

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Most Hybrids Per Capita

0 2 4 6 8 1 0 1 2

P o rt la nd, O RS a n F ra nc isco ,

M o nte re y , C AS a nta B a rba ra ,

L o s Ange le sB e nd, O R

W a shingto n, D CS a n D ie go

C ha rlo tte sv ille , VA

E uge neS e a tt le

H o no luluE ure ka

S a cra m e nto

D e nve r

Source: http://www.hybridcars.com/market-dashboard/feb07-regional.html

Hybrids per 1,000 Households, 2006

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Happier Citizen Commuters

(Source: Impresa analysis of Riley Research survey data)

Portland 60% rate transportation system “good or excellent”

Average of Metro Areas35% rate transportation system “good or excellent”

0 % 2 0 % 4 0 % 6 0 % 8 0 %

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More Local SpendingSpending on cars and fuel leaves the •

regional economyOther spending has less leakage• $1 billion in additional local purchasing •

power for all other industries

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And, yes, Lower Carbon Emissions

2 million people drive 4 miles less per day, • yielding 8 million fewer miles per day

At 20 miles per gallon, that saves 400,000 • gallons of gas

At 19.4 pounds of CO2 emitted per gallon, • 365 days a year

that saves 1.4 million tons per year•

And, yes, Lower Carbon Emissions

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Next Steps

Apply to Other Cities• Identify Possible Gains• Quantify Local Economic Impacts•

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For More Information

Joseph Cortright, Impresa• jcortright@impresaconsulting.com• Ceosforcities.org•