Economic influences on strategic land use transport policy and planning

Major economic influences on city strategic land use transport planning include structural economic changes within a city's economy and market failures that lead to external costs and benefits, particularly associated with travel. Case studies from Melbourne and London are used to illustrate how land use transport planning can work with structural economic changes to both enhance urban productivity and enable sharing of the benefits from this productivity among the city's residents. Market failures that lead to costs such as congestion on urban road and public transport networks, greenhouse gas emissions, poor air quality and traffic accidents underline the need for remedial measures, economists frequently proposing pricing reform, to make road users (in particular) more accountable for the costs attributable to their travel choices. The case for such pricing reform is illustrated, mainly using congestion as an example. Land use transport policy directions to support improved urban economic outcomes are summarised.