What is Smart Growth?

Question 1 

Automobile usage is posing a far-reaching environmental challenge especially in urban centers. In a bid to curb the spiralling emission of greenhouse gases, smart growth strategies have been proposed by policymakers and environmentalists. Feasible smart growth features ideal for the city of California include building of a broad spectrum of residential and employment spaces that are tailored to accommodate people in different socioeconomic statuses, residential/job density, and creating an elaborate public transport network, which interconnect the city. Typically, if the public transport network is expanded, it becomes possible for people to use public transport rather than use personal vehicles for commuting purposes. 

Question 2 

The demand model for vehicle miles traveled is responsive to smart growth strategies that are designed to reduce automobile-dependence. To be precise, creating residential density makes it easier to construct a public transport station that serves a vast segment of the population. Typically, a concentrated residential population density increases the usability of public transport, hence, reducing the demand for public transport. Moreover, the job housing balance will ensure that people live in the proximity of their workplace, thus, reducing the miles travelled when commuting to work. 

Question 3 

The gasoline price tax is a pragmatic disincentive approach for private transportation, but the approach is not effective in the long run because it sparks political debates and tends to draw vehement opposition. Since increasing taxes, in this case, gasoline price taxes, increases the cost of living which may deteriorate the quality of life led by members of the public, such an approach may be futile. The harsh living conditions created in the name of protecting the environment may nudge people to resent their leadership. The coercion associated with gasoline price tax may compel people to oppose the environmental conservation agenda. As a result, the smart growth approach will be effective in the long run because it aligns people’s behaviour to environmental conservation policies. 

Question 4 

MacFadden’s theory of hierarchical choice is a model that attempts to explain the decision-making process of an individual as informed by revealed preferences. The theory strives to use discrete choices in a bid to identify the position of items on a latent scale. In the context of the presented case, an individual may make decisions based on the following hierarchy: access to transit services, then one may prefer a location with concentrated employment opportunities, subsequently and individual may prefer a densely or scarcely populated residential area. Therefore, the theory demystified the decision-making process of individuals based on priorities.

Question 5

MacFadden’s theory of hierarchical choice plays an integral role in resolving discrepancies associated with endogeneity and multicollinearity. The model allows the authorities to better understand the residential tastes and preferences of the population. Hence, a city will be designed in a manner that is informed by the data collected about the preferences of residents of an area.

Question 6

3SLS estimators are usually modified by deleting or adding new variables or observations. In the context of the study, three variables were used. The variables include resden, jobspc, and transitpc which represent residential density based on the preferred areas of residence, jobs, and accessibility to quality and efficient transit. The 3SLS is designed to determine if the three endogenous variables are indeed endogenous. THE 3SLS technique presents a scenario in which the structure dictates the usage of exogenous instruments.

Question 7

The data demonstrates that the three endogenous variables are indeed endogenous both collectively and individually. Based on the data that compares the efficiency of gasoline taxation policies with smart growth, it was notable that a 10% increase in residential density, per-capita public transit, and job per-capita triggered a 1,826 miles reduction stemming from residential density, 1,143 from improved transit, and job per-capita was responsible for a 1,431 reduction in VMT. Typically, the data shows that the smart growth model is effective.