Place-based Policies Research Articles

Levelling-up beyond the metropolis: is the UK government’s preferred governance model appropriate?

ABSTRACT We consider whether the UK government’s levelling-up governance model of Combined Authorities and metro-mayors is the most appropriate solution for beyond the metropolis. We draw on case study research from the Mersey Dee area between North East Wales and North West England. The paper addresses three propositions. First, that the underlying distinction between agglomeration-driven and place-based policy centres on assumptions regarding the homogenous and heterogenous character of place. The paper shows how, in the UK context, the city-region concept has evolved as an agglomeration-driven territorial construct with practical limitations. Proposition two focuses on how a distinctive character of place reflects its particular mix of firms and their resulting combined processes of agglomeration. Proposition three suggests that this mix of firms presents choices for the appropriate design of institutions locally and regionally. Finally, the paper illustrates why the present agglomeration-driven framework is a barrier to enabling levelling-up. Progressing ‘levelling up’ involves recognition that heterogenous local governance contexts are shaped by history, culture, and geography, where the success of place-based policies is not aided by the top-down imposition of governance models.

Governing capabilities, not places – how to understand social sustainability implementation in urban development

Social sustainability’s implementation in urban development is a complex endeavour that demands alternative forms of governance. This article draws on the capabilities approach as an evaluative framework to better understand this implementation process. Through an in-depth case comparison of two Dutch urban development projects, the study analyses how collaborative governance situations (i.e. actors, activities and phases) relate to the expansions of resident capabilities in the urban areas. The findings present three principles for a ‘capability-centred governance’ of social sustainability in urban development: (1) integrate human logic into urban governance situations (2) balance strong goal commitment with experimentalist approaches and (3) institutionalise social sustainability implementation. The article concludes that social sustainability’s implementation requires a conceptualisation in which improvements in people’s lives are not seen as the self-evident consequences of a set of place-based policy interventions, but instead as a guiding principle that should continuously be reflected upon and learned from during the different phases of urban development processes.

Place-based V.S. space-neutral policies: the choice of regional coordinated development strategy

ABSTRACT Through establishing a spatial equilibrium model including regional productivity differences, fiscal policy, and labour migration costs, this article discusses the effects and interaction of place-based policies and space-neutral policies. This article finds that there are differences in the impacts and mechanisms of the two types of policies on the spatial distribution of industry and labour force, regional income gap, and overall economic productivity and shows the application situation of the two types of policies and the interactions between them. Therefore, policymakers should choose a differentiated policy portfolio to narrow the regional income gap and improve the overall economic productivity.

Immigrant attraction and retention: An exploration of local government policies

For cities, immigration is now considered a vital part of local economic and community development. Over the past half-century, many cities have experienced a series challenges caused by the impacts of late-stage demographic transition; the slow bleeding of skilled domestic workers to larger metropolitan areas; and the decline of traditional economic sectors. As a result, there has been a prioritization of attracting and retaining high-skilled and well-educated immigrants by local governments through locally-focused, place-based policies. Within this context, this paper examines the ways that cities in the Province of Ontario, Canada are constructing and implementing immigrant attraction, integration, and retention strategies. To achieve this goal, we identified and examined the local immigration policies of the 52 cities in Ontario, 36 of which have a formal immigration policy document. A comprehensive content analysis was conducted on these available to identify the ways that immigration is conceptualized, and the specific policies and approaches that local governments are implementing. Statistical analysis was used to determine if there was variation in policy across different types of cities. Based on this analysis, local governments are generally developing holistic, place-based policies – however, there is variation in approaches across cities of different sizes and geographies. These place-specific policies draw on local assets and advantages (i.e. existing migrant communities; local amenities and attractions; economic and education opportunities) while also work to enhance enhancing local capacity (i.e. building networks and immigration partnerships; training employers and city workers).

SAFOMETER - ASSESSING SAFETY IN PUBLIC SPACES: THE URBAN AREA OF PRISHTINA

Abstract. This paper introduces SafoMeter, a framework for assessing safety in public spaces using an index-based evaluation system that combines objective safety indicators with subjective perceptions of safety. The methodology is piloted in the urban area of Prishtina, Kosovo, and involves field data collection using the mobile application Mergin to map data for objective indicators and gather user responses on perceived safety. Analysis is conducted using QGIS software to create a map that showcases safe and unsafe areas of the city, rated from 0 to 10, with 10 indicating the safest areas. The study results demonstrate that SafoMeter effectively identifies and visualizes areas in need of urgent safety interventions. The tool enables evidence-based decision-making for policymakers by utilizing geospatial data to identify specific locations that require interventions. SafoMeter provides a practical approach to assess safety in public spaces and guide place-based policies to enhance urban safety, particularly for marginalized groups.

Place-based policy and green innovation: Evidence from the national pilot zone for ecological conservation in China

This study examines the impact of the National Pilot Zone for Ecological Conservation (NPZEC) policy in China on green innovation (GI) using panel data from 282 Chinese cities during the period 2011-2019. Employing a difference-in-differences (DID) model, we find that the NPZEC policy positively influences GI, leading to a significant increase of approximately 23.98% in the number of green patents in cities where the policy is implemented. Mechanism tests reveal that the NPZEC policy enhances fiscal support and promotes economic agglomeration, thereby fostering GI. Heterogeneity analyses indicate that the NPZEC policy prioritizes quantity over quality, with a stronger impact observed in western cities, low administrative level cities, and cities with lower economic development. Additionally, our findings highlight that higher public environmental attention and stronger intellectual property (IP) protection enhance the promotion effect of the NPZEC policy on GI. Lastly, the findings indicate that the NPZEC policy has a negative impact on GI in neighboring cities. Our study provides empirical references for policymakers to scientifically implement place-based policies and effectively promote GI in the future.

Capturing the achievements made by Interreg? Insights from cross border cooperation between Spain and Portugal

ABSTRACT In recent years, ‘place-based’ interventions have become influential in shaping economic development policy, especially at the European level. From the 2007 to 2013 programming period onwards, EU Cohesion policy, adopted a ‘place-based’ approach to encourage the competitiveness of all regions. Rather than spatially-blind interventions, the focus is on tackling territorial inequalities via a more sophisticated spatially-sensitive approach to stimulate economic change, at the local level. The challenge is that place-based policies are complex, risky and the performance indicators used to capture the achievements from EU Cohesion policy focus on direct results rather than expected policy change, making it hard to prove effectiveness and value for money. This paper contributes to ongoing academic and policy debates about how to capture the achievements of EU Cohesion policy, through an in-depth case study of ‘place-based’ interventions made via Interreg funding, to encourage cross-border cooperation between Spain and Portugal. The evidence illustrates that there is a need for novel approaches, which are conceptually informed and spatially sensitive to be able to capture not only the quantitative but also the qualitative achievements generated through EU ‘place-based’ interventions.

Multi-sectoral action to promote psychological wellbeing: Theorising the role of place-based policy.

Several national governments are showing interest in policies to promote wellbeing. One common strategy is to devise systems to measure indictors of wellbeing, presuming that governments act on what they measure. This article will argue instead that formation of multisectoral policies to promote psychological wellbeing requires a different kind of theoretical and evidentiary basis. The article integrates ideas from literature on wellbeing, health in all policies, political science, mental health promotion, and social determinants of health to make a case for place-based policy as the central feature of multi-sectoral policy for psychological wellbeing. I argue that the required theoretical foundation for policy action on psychological wellbeing lies with understanding certain basic functions of human social psychology including the role of stress arousal. I then draw on policy theory to propose three steps to translate this theoretical understanding of psychological wellbeing into practicable, multi-sectoral policies. Step one is concerned with adopting a thoroughly revised conception of psychological wellbeing as a policy problem. Step two involves uptake of a theory of change in policy, grounded on recognition of essential social conditions required to promote psychological wellbeing. Proceeding from these, I will argue that a necessary (but not sufficient) third step is to implement place-based strategies involving government-community partnerships, to generate essential conditions for psychological wellbeing on a universal basis. Finally, I examine implications of the proposed approach for current theory and practice in mental health promotion policy. Place-based policy is foundational for effective multi-sectoral policy to promote psychological wellbeing. SO WHAT?: Governments aiming to promote psychological wellbeing should position place-based policy at the centre of their strategies.

Spatial Inequities in Life Expectancy in Small Areas of Buenos Aires, Argentina 2015–2017

Studies of life expectancy (LE) in small areas of cities are relatively common in high-income countries but rare in Latin American countries. Small-area estimation methods can help to describe and quantify inequities in LE between neighborhoods and their predictors. Our objective was to analyze the distribution and spatial patterning of LE across small areas of Ciudad Autónoma de Buenos Aires (CABA), Argentina, and its association with socioeconomic characteristics. As part of the SALURBAL project, we used georeferenced death certificates in 2015–2017 for CABA, Argentina. We used a spatial Bayesian Poisson model using the TOPALS method to estimate age- and sex-specific mortality rates. We used life tables to estimate LE at birth. We obtained data on neighborhood socioeconomic characteristics from the 2010 census and analyzed their associations. LE at birth was higher for women (median of across neighborhoods = 81.1 years) compared to men (76.7 years). We found a gap in LE of 9.3 (women) and 14.9 years (men) between areas with the highest and the lowest LE. Better socioeconomic characteristics were associated with higher LE. For example, mean differences in LE at birth in areas with highest versus lowest values of composite SES index were 2.79 years (95% CI: 2.30 to 3.28) in women and 5.61 years (95% CI: 4.98 to 6.24) in men. We found large spatial inequities in LE across neighborhoods of a large city in Latin America, highlighting the importance of place-based policies to address this gap.

Diverged landscape of restaurant recovery from the COVID-19 pandemic in the United States

The COVID-19 pandemic has imposed catastrophic impacts on the restaurant industry as a crucial socioeconomic sector that contributes to the global economy. However, the understanding of how the restaurant industry was recovered from COVID-19 remains underexplored. This study constructs a spatially explicit evaluation of the effect of COVID-19 on the restaurant industry in the US, drawing on the attributes of+200,000 restaurants from Yelp and+600 million individual-level restaurant visitations provided by SafeGraph from 1st January 2019 to 31st December 2021. We produce quantitative evidence of lost restaurant visitations and revenue amid the pandemic, the changes in the customers' origins, and the retained visitation law of human mobility-the number of restaurant visitations decreases as the inverse square of their travel distances-though such a distance-decay effect becomes marginal at the later pandemic. Our findings support policy makers to monitor economic relief and design place-based policies for economic recovery.

The role of place-based policies on carbon emission: A quasi-natural experiment from China’s old revolutionary development program

The effectiveness of place-based policies on carbon emission is controversial, and particularly the mechanism behind its effectiveness is unknown. We treat China’s Old Revolutionary Development Program (ORDP)— a large-scale and novel type of place-based policy targeted at undeveloped regions, as a natural experiment to estimate ORDP’s impact on carbon emission. Employing the panel data of 110 prefecture-level cities in China from 2010 to 2019, we perform a time-varying difference-in-differences (DID) study and discover that ORDP leads to an average of 26.7% increase in carbon emission and this effect takes a period to emerge and is not sustainable in the long term. Three mechanisms that may result in such impact are that ORDP improves economic development, changes industrial structure, and decreases technological progress. Further heterogeneity analysis indicates that ORDP results in a greater increased impact on carbon emission in old revolutionary cities that are located in western China compared to those located in central and eastern China.

Modeling determinants of the Generation Z regional perception on the periphery: To stay or to leave

Regional attractiveness plays a crucial role in regional economic development and competitiveness. Despite interest in out-migration from peripheral regions, most studies overlooked Generation Z members in perceiving these factors. Therefore, the paper aims to examine the effect of the regional perception of Generation Z on their expectation of out-migration from the peripheral region. The focus group comprised 56 respondents (stakeholders) selected through purposive sampling by regional development agencies in three peripheral regions of the Czech Republic to identify regional perception indicators. The exploratory factor analysis and the principal component analysis were used to detect latent constructs of the identified regional perception indicators. Logistic regression was used to model the association between latent constructs and Generation Z’s intention to leave or to stay in the peripheral region. Economic, social, and environmental dimensions were detected as latent constructs of regional perception indicators. The first dimension represents smartness and opportunities; the second, openness, is accompanied by culture; and the third, a safe and clean environment. The estimation results suggest the effect of the economic and lifestyle dimensions (β = 0.528, p < 0.001) and the social dimension (β = 0.292, p < 0.01) of the regional perception on the intention of Generation Z to leave or stay in the peripheral region, without the effect of the environmental dimension (β = 0.033, p = 0.740). The paper emphasizes the importance of economic, lifestyle, and social indicators of regional perception in place-based policies to retain Generation Z in the peripheral regions. AcknowledgmentThis paper was supported by the Technology Agency of the Czech Republic – program ÉTA under Grant TL03000525 – Design of a Model of Metropolitan Areas in the Czech Republic affected by depopulation.

The Impact of Place-Based Policies on Firm Performance: Evidence from China

This study investigates the causal effect of the first round of China’s Great Western Development Strategy (GWDS) on the total factor productivity (TFP) of Chinese manufacturing firms employing the geographic regression discontinuity design. It uses the firm-level data from China’s Annual Survey of Industrial Firms (ASIF) database from 1998 to 2007. To follow the principle of the geographic regression discontinuity design and ensure the validity of our identification strategies, only firms within a 10 km radius on either side of the GWDS boundary were retained in the baseline regression. The main results include some of the following: (1) The GWDS increased the TFP of firms on the western side of the boundary in the range of 11.2% to 13.7%. (2) The main mechanisms of this improvement were identified as the reduction of a firm’s actual income tax rate and increased firm investment in high-quality human capital. (3) The GWDS has a greater impact on private firms, small firms, and labor-intensive firms. This study provides reliable evidence that place-based policies can promote the sustainable development of firms within the affected regions, and could serve as policy inspiration to alleviate regional development disparities in other developing countries.

The Geography of Unemployment

Abstract Unemployment rates differ widely across local labor markets. I offer new empirical evidence that high local unemployment emerges because of elevated local job-losing rates. Local employers, rather than local workers or location-specific factors, account for most of the spatial gaps in job stability. I propose a theory in which spatial differences in job loss emerge in equilibrium because of systematic differences between employers across local labor markets. The spatial sorting decisions of employers in turn shape heterogeneity across locations. Labor market frictions induce productive employers to overvalue locating close to each other. The optimal policy incentivizes them to relocate toward areas with high job-losing rates, providing a rationale for commonly used place-based policies. I estimate the model using French administrative data. The estimated model accounts for over three-quarters of the cross-sectional dispersion in unemployment rates and for the respective contributions of job-losing and job-finding rates. Inefficient location choices by employers amplify spatial unemployment differentials fivefold. Both real-world and optimal place-based policies can yield sizable local and aggregate welfare gains.

Neighborhood Opportunity and Mortality Among Children and Adults in Their Households.

Research has linked neighborhood opportunity to health outcomes in children and adults; however, few studies have examined neighborhood opportunity and mortality risk among children and their caregivers. The objective of this study was to assess associations of neighborhood opportunity and mortality risk in children and their caregivers over 11 years. Participants included 1 025 000 children drawn from the Mortality Disparities in American Communities study, a cohort developed by linking the 2008 American Community Survey to the National Death Index and followed for 11 years. Neighborhood opportunity was measured using the Child Opportunity Index, a measure designed to capture compounding inequities in access to opportunities for health. Using hazard models, we observed inverse associations between Child Opportunity Index quintile and deaths among child and caregivers. Children in very low opportunity neighborhoods at baseline had 1.30 times the risk of dying over follow-up relative to those in very high opportunity neighborhoods (95% confidence interval [CI], 1.15-1.45), and this excess risk attenuated after adjustment for household characteristics (hazard ratio, 1.15; 95% CI, 0.98-1.34). Similarly, children in very low opportunity neighborhoods had 1.57 times the risk of experiencing the death of a caregiver relative to those in very high opportunity neighborhoods (95% CI, 1.50-1.64), which remained after adjustment (hazard ratio, 1.30; 95% CI, 1.23-1.38). Our analyses advance understanding of the adverse consequences of inequitable neighborhood contexts for child well-being and underscore the potential importance of place-based policies for reducing disparities in child and caregiver mortality.

The Effect of Place-Based Policy on Urban Land Green Use Efficiency: Evidence from the Pilot Free-Trade Zone Establishment in China

The improvement of urban land green use efficiency is significant in promoting sustainable development. As an important place-based policy in China, the pilot free-trade zone establishment has exerted a profound impact on urban economy and society. Meanwhile, the issue of whether the pilot free-trade zone can improve urban land green use efficiency or not is missing from prior literature, which is the concern of this study. Specifically, based on the super-efficiency slacks-based measure model, we first measure urban land green use efficiency of 279 cities in China from 2011 to 2019 and then use the multi-period difference-in-differences method to investigate the causal effect of the pilot free-trade zone establishment on urban land green use efficiency. The results show that the pilot free-trade zone significantly improved urban land green use efficiency, especially in the eastern cities, the coastal cities, and the cities with a high economic development level. Further, there exists a spatial spillover effect of the pilot free-trade zone on urban land green use efficiency. This study has implications for optimal allocation of urban land in the deployment of place-based policies, serving economic structural upgrading and a carbon neutrality vision.

The Impact of New Jersey's Urban Enterprise Zones on Local Employment: A Synthetic Control Approach

The designation of enterprise zones is a place-based policy that seeks to revitalize economically blighted areas. The literature on place-based policies has found mixed results regarding their effects on local payroll employment. This paper examines the causal effects of five of New Jersey's Urban Enterprise Zones (UEZs) on local payroll employment: Bayonne, Gloucester City, New Brunswick, Roselle Borough, and The Wildwoods (Wildwood City, Wildwood Crest, North Wildwood, and West Wildwood). All were designated as UEZs by the state in the 2000s, and none have been previously evaluated in the academic literature. The program offers reduced local sales tax, tax credits for newly hired employees, subsidized unemployment insurance costs, worker training assistance, and tax-free purchases on capital equipment and facilities. A synthetic control approach is used with the industrial composition of local firms and poverty rate as the covariate group and no impact of UEZ status on local employment in the treatment periods of the five areas is found. These results suggest that enterprise zones may not be effective job creators for treated areas, particularly for those zones that were added long after the program's inception.

How well do area-based deprivation indices identify income- and employment-deprived individuals across Great Britain today?

BackgroundArea-based deprivation indices are used in many countries to target interventions and policies to populations with the greatest needs. Analyses of the Carstairs deprivation index applied to postcode sectors in 2001 identified that less than half of all deprived individuals lived in the most deprived areas. ObjectiveThis article examines the specificity and sensitivity of deprivation indices across Great Britain in identifying individuals claiming income- and employment-related social security benefits. Study designThis was a descriptive analysis of cross-sectional administrative data. MethodsThe data sets for the 2020 Scottish Index of Multiple Deprivation, Scottish Income and Employment Index, the 2019 English Index of Multiple Deprivation and the 2019 Welsh Index of Multiple Deprivation were obtained. For each data set, small areas were ranked by increasing overall deprivation, and the cumulative proportions of individuals who were income and employment deprived were calculated. Receiver operating characteristic curves were plotted to show the sensitivity and specificity of each index, and the percentages of income- and employment-deprived individuals captured at different overall deprivation thresholds were calculated. ResultsAcross all indices, the sensitivity and specificity for detecting income- and employment-deprived individuals were low, with less than half living in the most deprived 20% of areas. Between 55% and 62% of income-deprived people and between 56% and 63% of employment-deprived people were missed across the indices at the 20% deprivation threshold. The sensitivity and specificity were slightly higher for income deprivation than employment deprivation across indices and slightly higher for the Scottish Index of Multiple Deprivation and Scottish Income and Employment Index than for the English Index of Multiple Deprivation and Welsh Index of Multiple Deprivation. ConclusionArea-based deprivation measures in Great Britain have limited sensitivity and specificity for identifying individuals who are income or employment deprived. Place-based policies and interventions are unlikely to be effective at reducing inequalities as a result. Creation of individually linked data sets and interventions that recognise the social and economic relationships between social groups are likely to be more effective.

Place-Based Policies and Carbon Emission Efficiency: Quasi-Experiment in China's Old Revolutionary Base Areas.

Regional imbalance is a typical feature of economic and social development in China, and place-based policies aimed at promoting balanced regional development may bring challenges to low-carbon goals. This study uses the panel data of China's prefecture-level cities from 2003 to 2019 to investigate the impact of place-based policies on carbon emission efficiency using a quasi-experimental method. Results indicate that place-based policies significantly reduce the regional total-factor carbon emission efficiency. The difference-in-differences method based on propensity score matching and entropy balancing matching consistently supports the finding that carbon emission efficiency decreases after policy intervention. Place-based policies lead to a significant decline in capital allocation efficiency but have an insignificant impact on labor allocation efficiency. Moreover, place-based policies result in the expansion of carbon-intensive industries but hinder the progress of the financial technology of financial institutions. Nevertheless, place-based policies do not lead to the deterioration of environmental quality. Among the advantages of these policies are the significant promotion of regional digitization and increased fiscal expenditure on science and technology. Political promotion, carbon regulation, trade policies, and other conditional factors may be optimally designed to promote low-carbon development in the old revolutionary areas.

The Impact of Location-Based Tax Incentives and Carbon Emission Intensity: Evidence from China's Western Development Strategy.

This study seeks to address the question of whether China's Western Development Strategy (WDS) has affected the carbon emission intensity of the regions it covers. There remains a distinct lack of analysis based on the normative causal inference method regarding the impact of this economic development policy on carbon emissions. Our research contributes to the large body of international literature studying the effects of place-based policy and has implications for place-based policies regarding the impact of carbon emissions. It constructs a duopoly model to illustrate the relationship between lower prices of capital (caused by policies such as tax reduction) and carbon emissions. Using county-level data on both sides of the provincial boundary of the WDS from 1998 to 2007, and applying the difference-in-differences method, our results indicate that the WDS has significantly increased carbon emission intensity of the western counties. Our findings also indicate that while the WDS has had no significant positive effect on counties' economic growth, no policy trap effect was found. There is also no evidence suggesting that the economic activities attributable to the WDS have brought any negative externalities of carbon emissions to the counties east of the western provincial border.