THE FINANCIAL COSTS OF URBAN SPRAWL: CASE STUDY OF PENANG STATE

Shahriza Osman, Jamalunlaili Abdullah, Abdul Hadi Nawawi

Abstract

The financial cost of urban sprawl is the additional or incremental costs measured relative to the type, density and location of sprawl development compared to inner city development. The costs are incurred by both the public and private sectors. Numerous studies on costs of sprawl found that there is an increase in infrastructure costs associated with sprawl development compared to compact development. Sprawl increases infrastructure costs in several ways. Lower density means each yard of linear infrastructure such as water and sewer serves fewer households. Housing type and location affect the number of water and sewer laterals and resultant costs. Road network cost increases as well. The increase in costs compels researchers to examine what type and which location of development should be encouraged. This paper adopts a case study approach in examining housing development costs of eleven housing projects in Penang State, Malaysia. Mathematical and statistical analysis are applied on actual data. The results of cross tabulation reveal that costs per unit of housing development, based on traditional development calculations, are cheaper with greater distance from CBD. However, when additional development costs data (infrastructure costs such as roadworks, sewerage and water lines from housing projects to the sub-service centres) are factored in, the results show that the cost per unit is higher with greater distance from CBD. These results support international findings that cost per unit of development rises as distance increases and densities decreases, characteristics of sprawl development. This is perhaps the first empirical results on financial costs of sprawl in Malaysia and hope to be a springboard to future studies on costs of urban sprawl in Malaysia.

Keywords

financial costs, urban sprawl, housing development, Penang State

Full Text:

PDF

References

Ahris Yaakup, & Susilawati Sulaiman (2005). GIS as new approach and method in preparing and implementing the development plan in Malaysian planning system. Retrieved from http://eprints.utm.my/622/2/GIS_As_New_Approach_And_Method%28%29Ahris_Yaakup.pdf

Abdullah, J. (2003). The suburbanisation of the Kuala Lumpur Metropolitan Region. Planning Malaysia, 1, 119-126.

Abdullah, J. (2009, November). Rekabentuk bandar kompak ke arah pembangunan mapan. Seminar Kebangsaan Rupabandar Malaysia - Mengekal Warisan Membina Identiti. November 28-29, 2007, Lumut, Perak.

Abdullah, J., Yahaya, M. Z., Yunus M. Z, & Safudin, M. S. (2009). Urban sprawl in Malaysia: evidences from three largest metropolitan areas. Planning Malaysia, 7, 69-82.

Bryant, L., & Eves, C. (2014). The link between infrastructure charges and housing affordability in Australia: where is the empirical evidence? Australian Planner, 51(4), 307-317.

Burchell, Robert W. (1990). Fiscal impact analysis: state of the art and state of the practice. In S. G. Robinson (Ed.), Financing growth: who benefits? Who pays? And how much? Chicago: Government Finance Officers Association

Burchell, R. W., & Shad, N. A. (1998). Evolution of the sprawl debate in the United States. Hastings West-Northwest Journal of Environmental Law & Policy, 5, 137.

Duncan, J. G. (1992). Preserving rural landscape in the midst of suburban sprawl (Masters Thesis). University of Rhode Island.

Ewing, R., Pendall, R., & Chen, D. (2002). Measuring urban sprawl and its impacts.

Frank, J. E. (1989). The cost of alternative development pattern: a review of the literature. Washington, DC: Urban Land Institute.

Isard, W., & Coughlin, R. E. (1957). Municipal cost and revenues resulting from growth. Wellesley, Massachusetts: Chandler-Davis.

Ladd, H. (1998). Local government tax and land use policies in the United States: understanding the links. In W. Oates (Ed.), Studies in fiscal federalism and state location. Cambridge, MA: Lincoln institute of Land policy.

Noor, N. M., Asmawi, M. Z., & Rusni, N. A. (2014). Measuring urban sprawl on geospatial indices characterized by leap frog development using remote sensing and GIS techniques. In IOP Conference Series: Earth and Environmental Science, 18(1). IOP Publishing (Online).

Noor, N. M., & Rosni, N. A. (2013). Determination of spatial factors in measuring urban sprawl in Kuantan using remote sensing and GIS. Procedia-Social and Behavioral Sciences, 85, 502-512.

Ojima, R. (2007). Mobility, urban sprawl and environmental risk in agglomerations. PRIPODE Workshop on Urban Population-Development-Environment Dynamics. June 11-13, 2007, Nairobi, Kenya.

RERC- Real Estate Research Corporation (1974). The costs of sprawl: detailed cost analysis. Washington D.C.: U.S. Government Printing Office.

Sabri, S., & Yakuup, A. (2008). Multi-criteria decision making for urban sprawl, using Analytic Network Process and GIS, case of Iskandar Malaysia Region. Map Asia 2008. August 18-21, 2008, Kuala Lumpur, Malaysia.

Safudin, M. S. (2007). Urban sprawl: case study of Johor Bahru (Dissertation). Universiti Teknologi MARA, Shah Alam, Selangor.

Speir, C., & Stephenson, K. (2002). Does sprawl cost us all? Isolating the effects of housing patterns on public water and sewer costs. Journal of the American Planning Association, 68(1), 56-70.

Thomson, G., Hoffman, J., & Staniforth, S. (2003). Measuring the success of environmental education programs. Ottawa: Canadian Parks and Wilderness Society and Sierra Club of Canada.

Torrens, P. M. (2006). Geosimulation and its application to urban growth modeling. In J. Portugali (Ed.), Complex artificial environments (pp. 119-134). London: Springer.

Yahaya, M. Z. (2006). Urban growth and sprawl in Kuala Lumpur Metropolitan Region (Dissertation). Universiti Teknologi MARA, Shah Alam, Selangor.

Refbacks

  • There are currently no refbacks.