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    Thinking spatially:

    Economic models ofurban land use change

    Elena G. Irwin

    Associate Professor

    Department of Agricultural, Environmental and Development Economics

    Ohio State University

    Presentation prepared for the conference on Spatial Thinking in theSocial Sciences, University of Illinois, December 17-18, 2006.

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    Key points

    Pattern vs. process-based models of land use change

    Traditional geographic models: emphasize pattern over process

    Traditional economic models: emphasize process over pattern

    Qualitative changes in land use change patterns points out

    limitations of pattern-based geographic models

    Increased availability of fine-scale data points out limitations of

    highly stylized economic models

    We need hybrid models that combine process and pattern

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    Example: pattern-based model of urban land

    use change

    Cellular automaton urban growth model

    Non-behavioral model of land use cell transitions that are

    determined by relative geographic location of cell (spatial rules)

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    Washington Baltimore historical urban growth

    (Urban Growth in American Cities - Glimpses of

    US Urbanization, USGS Circular 1252, 2003;

    Available online at

    http://landcover.usgs.gov/LCI/urban/data.phpSource: Clarke and Gaydos, 1998

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    How have economists traditionally

    represented space?

    Space is typically represented in economic units vs. geographicalunits, e.g.

    Urban economics: transportation costs

    New geographical economics: regional economy

    Behavioral (i.e., process-based) models of economic agents(households or firms) that provide simple explanation and prediction

    of spatial pattern

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    Urban economic model of land use: space

    as transportation costs

    Monocentric model (or bid-rent model)

    Pre-determined central employment area

    Accessibility to central employment district drives firm andhousehold location decisions

    Otherwise space is a featureless plane

    Predicts concentric ring of urban land use around centralbusiness district and declining density gradient

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    Monocentric model land use prediction

    Low

    density

    residential

    Higher densityresidential

    distance from city

    Undeveloped

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    Monocentric model land use prediction(distance via major roads)

    Low

    densityresidential

    Undeveloped

    distance from city

    Higher density

    residential

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    Empirical test: urban density gradient

    Empirical test of monocentric city

    model: urban density gradient

    (Clark, 1951; Mills, 1972;

    Edmonston, 1975) Assume negative exponential:

    Estimate density gradient:

    _ a( ) expD x D x K! 0

    D x

    DK

    x x!

    x = distance from city; D = population density; = density gradient

    Negative Exponential Density Gradient

    0

    2000

    4000

    6000

    8000

    0 5 10 15

    suburbs

    persons/sq

    mile

    city

    = -0.25K

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    How well does this model describe actual

    patterns of urban land use?

    Using population density gradient estimates, Anas, Arnott and Small

    (1998) estimate that the monocentric model explains approximately

    63% of urban decentralization between 1950-70 in the US

    To what extent does this conclusion depend on spatial scale,

    geographical extent and type of data?

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    Urban land proportion

    0 - 0.050.051 - 0.1

    0.13 - 0.270.25 - 0.5

    0.5 - 1

    10 0 10 20 Miles

    Urban Land Density (NRI Data 1997)

    State of Maryland

    Washington DC

    Baltimore

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    State of Maryland

    Population Density (Census tract 2000)

    10 0 10 20 Miles

    Persons / sq km0 - 13.68113.681 - 21.29521.295 - 27.38627.386 - 38.138.1 - 52.45552.455 - 67.64267.642 - 100.328100.328 - 171.101171.101 - 489.099489.099 - 6393851.358

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    State of Maryland

    2000 Urban and Rural Land Use (Department of Planning)

    High Urban

    Rural

    Water

    10 0 10 20 Miles

    Low Urban

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    Washington D.C. area: population density vs. land use (2000)

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    Explaining residential land use patterns

    (Irwin, Bockstael and Cho, 2006)

    How well does basic monocentric model explain finer scale

    variations in residential pattern?

    Is there structural change across time? across urban-ruralgradient? are results scale dependent?

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    Explaining residential land use patterns

    (Irwin, Bockstael and Cho, 2006)

    Regression analysis using Maryland 1973 and 2000 land use raster

    data (100 m cell size)

    Dependent variables: %undeveloped in 1 and 5 sq km

    neighborhoods

    Explanatory variables

    Distance via roads to major urban centers

    Distance via roads to suburban and small city centers

    Controls for local spatial heterogeneity (soil and topography)

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    Measure of residential pattern: %undeveloped in neighborhood

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    Variable Estimate

    Standard

    Error t value Estimate

    Standard

    Error t value

    Intercept -25.159 0.418 -60.21 -13.656 0.422 -32.38

    log(DC dist) 4.080 0.063 64.4 7.574 0.064 118.45

    log(BA dist) 4.639 0.050 93.06 7.541 0.050 149.87

    log(35k+ dist) 2.486 0.078 31.75 0.987 0.079 12.5

    log(10k+ dist) 1.617 0.078 20.75 0.087 0.079 1.1

    Dataset: MDP 1973 (175,496 obs)

    Neighborhood = 0.5 sq km Neighborhood = 5 sq km

    Adj R-Sq: 0.1651 Adj R-Sq: 0.3026

    Variable Estimate

    Standard

    Error t value Estimate

    Standard

    Error t value

    Intercept -27.057 0.292 -92.82 -35.599 0.250 -142.37

    log(DC dist) 4.543 0.051 88.35 8.189 0.044 185.66

    log(BA dist) 4.579 0.040 113.3 7.401 0.035 213.52

    log(35k+ dist) 2.809 0.056 49.95 3.022 0.048 62.65

    log(10k+ dist) 1.788 0.054 33.3 3.055 0.046 66.34

    Dataset: MDP 2000 (365,438 obs)

    Neighborhood = 0.5 sq km Neighborhood = 5 sq km

    Adj R-Sq: 0.1574 Adj R-Sq: 0.3816

    Results reported for distance variables only

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    Urban-rural county typology

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    Variable Estimate

    an ar

    Error t value

    Intercept -67.42717 0.46243 -145.81

    log(DC dist) 11.04036 0.06897 160.07

    log(BA dist) 12.70976 0.06279 202.41

    log(other dist) 6.35461 0.06389 99.45

    log(10k+ dist) 0.35066 0.13563 2.59

    Neighborhood = 5 sq km

    Adj R-Sq: 0.3937

    Dataset: Large urban 2000 (159,642 obs)

    Variable Estimate

    an ar

    Error t value

    Intercept -88.99276 0.73313 -121.39

    log(DC dist) -0.62311 0.20329 -3.07

    log(BA dist) 19.02737 0.1749 108.79

    log(35k+ dist) 14.35187 0.1155 124.26

    log(10k+ dist) 11.2783 0.09684 116.47

    Neighborhood = 5 sq kmAdj R-Sq: 0.5161

    Dataset:Suburban 2000 (55,931 obs)

    Variable Estimate

    an ar

    Errort value

    Intercept 28.90027 1.00904 28.64

    log(DC dist) -0.82313 0.16117 -5.11

    log(BA dist) 9.62599 0.21068 45.69

    log(35k+ dist) 3.56933 0.09694 36.82

    log(10k+ dist) -4.31805 0.13289 -32.49

    Neighborhood = 5 sq km

    Adj R-Sq: 0.0676

    Dataset: Exurban 2000 (79,830 obs)

    Results reported for distance variables only

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    Results using finer scale land use data

    Distance to city explains some of the variation in urban pattern

    Scale dependence: distance explains about 30% of variationwith larger neighborhood size vs. 15% of variation with smallerneighborhood size

    Spatial heterogeneity: in exurban areas, about 93% of variationis unexplained vs. 49% unexplained in suburban areas

    Other spatial processes matter, particularly at local scale andparticularly in exurban areas

    Need explicit representation of geographic space to capturethese other processes

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    Spatial interactions hypothesis

    (Irwin and Bockstael, 2002)

    Can the fragmented pattern of development be explained as the

    result of interactions among developed land use parcels?

    Positive spatial externalities

    clustered pattern

    Negative spatial externalities scattered pattern

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    Data

    Geo-coded land parcel centroids from two Maryland exurbancounties

    Seven year history of convertible parcels (1991-1997)

    Parcel characteristics: zoning, network road distance to D.C.,public sewer, soil, slope, etc.

    Neighborhood variable: percent of residential land within a givenbuffer of each parcel centroid

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    Binary dependent variable:

    1 if converted in time period t, 0 otherwise

    VariableVariable EffectEffectDistance to DC negative and significant

    Soil quality negative and significant

    Minimum lot size positive up until approx. 3.8

    acresPublic sewer positive and significant

    Steepness of slope negative and significant

    Distance to nearest

    road

    insignificant

    %Development in

    Inner Neighborhood

    insignificant

    %Development in

    Outer Neighborhood

    negative and significant

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    predicted LU change

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    Accounting for multiple spatial processes

    Can spatial interactions be incorporated into monocentric model?

    No: monocentric model simplifies space to one dimension (distanceto city)

    Can distance be incorporated into a model of spatial interactions?

    Yes: explicit representation of geographic space allows for

    consideration of multiple spatial processes

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    Hybrid models of process and pattern

    Process-based model: agent decision making

    Pattern-based model: agents are located in geographic space

    As a result, space can matter in multiple ways

    Spatial heterogeneity

    Distance (e.g., to employment, recreation)

    Spatial interactions and externalities

    Spatial scale, scale-dependent effects, cross-scale interactions

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    Made possible by

    Availability of finer scale land use/cover data

    Geographic data software

    Computational ability and methods

    H

    ybrid models of process and pattern

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    Some modeling challenges

    Hybrid models require a combination of theoretical, empirical andsimulation approaches

    Theoretical challenges

    Identifying relevant spatial and temporal scales Accounting for interactions across spatial and temporal scales

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    globe

    country

    region

    metro

    county

    neigh-

    borhood

    parcel

    month quarter year decade century

    transportation and

    communications costs

    economic restructuring

    householdwealth

    land quality, public services, surrounding land uses

    living costs,

    agglomeration

    economics, labor

    force, employment,

    publicservices,

    infrastruc-

    ture, local

    policies

    neighborhood amenities, zoning,access

    time

    space

    Determinants of Household/Firm Location & Land Use Decisions (Irwin, 2006)

    urban &

    natural

    amenities

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    Some modeling challenges (continued)

    Empirical challenges

    Identifying spatial processes vs. measurement error

    Data accuracy, appropriate data for question

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    Some modeling challenges (continued)

    Simulation challenges

    Specifying parameters and spatial environment (e.g., the rightamount of spatial heterogeneity)

    Validating model specification

    Testing pattern hypotheses and summarizing model results

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    Some modeling methods

    Theoretical

    Complex systems theory

    Behavioral economics

    Empirical

    Pattern detection and metrics using GIS

    Spatial econometrics

    Simulation

    Agent-based (or multiagent) models and geographic automata systems

    Object-oriented programming