Planning in the energy sector

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    Spatial Planning and the

    Energy Sector

    GG5530

    William J V [email protected]

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    The Planning System The planning

    system is

    designed toregulate(facilitate) thedevelopment

    and useofland in thepublicinterest

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    Spatial planning

    Spatial planning goesbeyond traditional landuse planning to bringtogether and integratepolicies for the

    development and use ofland with other policiesand programmes whichinfluence the nature ofplaces and how they can

    function. ODPM (2005) PPS1 Delivering SustainableDevelopment, p.30

    SPATIAL PLANS SHOULD

    1. Set a vision for the future patternof development with clearobjectives, an implementationfocus and evaluation system

    2. Consider the needs andproblems of communities andhow they interact with them in theuse and development of landhow will social and economicneeds of the area be met

    3. Seek to integrate the wide range

    of activities relating todevelopment and regeneration

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    Why spatial planning?

    A ruptured pipeline

    burns in a Lagos

    suburb after an

    explosion in 2008which killed at least

    100 people.

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    Shell and Chevron

    Why environmental

    regulation/ spatial

    planning?

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    Gulf of Mexico 2010

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    Site location !Japan earthquake

    March 12th2011

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    Environmental Governance

    Planning is part of environmental governance

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    Governance

    Governance includes the state,but transcends it by taking inthe private sector and civilsociety. All three are critical forsustaining human

    development. The statecreates a conducive politicaland legal environment. The

    private sector generates jobsand income. Civil societyorganizations are the host of

    associations around whichsociety voluntarily organizes.

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    Cultural context important

    E l ti f B iti h ti l l i

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    Evolution of British spatial planning

    culture

    Early origins of British Planning theory and

    practice. Towards the 1947 Town and

    Country Planning Act

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    The socio-economic context of the

    19th/early 20th century in GB

    Social trends (inequality)

    Economic trends (growth)

    Political trends (reform)

    Development trends

    (urbanisation)

    Main planning issues (liveable

    cities)

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    The Town and Country Planning

    Act 1947

    Physical planning provisions

    Development plans

    Development control

    Financial provisions

    The compulsory purchase of all

    development rights

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    1960s: Planning and the

    public

    Demands for greater publicinvolvement

    Skeffington Report (1969):

    People and Plans

    Bottom up planning

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    Thatcherism and spatial

    planning

    Economic liberalism (minimal

    government)

    Adam Smith, Milton Friedman,

    Friedrich Hayek

    Strong central government)

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    The New Right view of

    planning Planning as a burden

    Rolling back the state

    Interference with individualliberty

    Distortion of market forces

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    1980s: By-passing the planningsystem

    Enterprise Zones:

    Tax advantages

    Relaxation of planning

    Simplified Planning Zones

    Return of these ideas 2011+

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    The planning system in Great Britain :

    general scope

    Sustainable development Spatialplanning

    Community involvement

    and design

    Sustainable Developmentas the master signifier

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    Summary: New Labour

    Greater investment in planning as an instrument ofenvironmental, economic and social development

    Multilayered approach from the national, to the regionaland then the local

    Spatial planning and sustainable development a majorfeature of the new approach

    Community involvement promoted in developmentplanning

    Quality design and quality environments a strong featureof the sustainable development agenda

    Development control systems and processes still largelyintact

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    Con-Lib coalition

    Emphasis on localism

    Activating civil society (Big Society)

    Retreat from strategic approach? Abolitionof Regional Development Agencies,

    Infrastructure Commission.

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    Theoretical rationales and ethics

    for planning intervention in spatial

    processes

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    Theory in planning and theory of

    planning

    Theory in planning : substantive planning

    theory : design, rural theory, transport,

    economic development etc.

    Theory of planning : planning as process:

    proceduralplanning theory

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    Theory inplanning : multi

    dimensional character of place Place (the spatiality of being) is a master

    category for spatial planners. We areintrinsically spatial beings (Soja , 1996). Wemust understand socio-spatial process.

    Functional and softer aspects of settlements Place is a messy conceptit provides an

    overload of possible meanings for theresearcher ( involves many ways of knowing-sight, sound, smell, touch, taste..) DoloresHayden , The Power of Place, 1995. Syntheticconcept

    Theory inplanning is broad. Need to specialise!

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    Theory ofplanning (rationales for

    intervention)

    Economics and the market : rationales for

    government regulation and intervention:

    macro and micro level

    Sustainable developmentas master

    ethical framework?

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    Microeconomics: overview of

    theory and link to justification for

    planning intervention

    Crucial in justification for land useplanning

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    The Market

    A set of arrangements by which buyers

    and sellers are in contact to exchange

    goods and services. They determine

    prices that ensure that the quantity peoplewish to buy equals the quantity producers

    wish to sell

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    Basic interactions in

    microeconomics

    Basic division :consumers(consumer/demand theory) and firms(supply theory)

    Final goods markets

    Factor markets for the factors ofproduction (land, labour, capital,

    entrepreneurship). Deal with deriveddemand. Demand for oil and gas a deriveddemand

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    Equilibrium price

    Impersonal interaction of demand andsupply clears the market

    Excess demand: price bid up

    Excess supply: price bid down Equilibrium price: price at which quantity

    supplied equals quantity demanded

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    Theory of consumer behaviour :

    Consumption possibility frontier

    People maximise utility (satisfaction) asrational economic agents within a marketenvironment (prices) and budget restraints

    (income)

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    Consumer sovereignty?

    Demand theory (the rational ,utility

    maximising consumer) provides a moral

    justification for the market

    Famous book by Milton Friedman

    Freedom to Choose

    But various ethical challenges e.g.Green

    challenge. Is anthropocentric

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    Theory of the firm

    Supply side behaviour

    Supply curve generally slopes up from left

    to right (higher the price more supplied)

    but are many supply side situations

    (monopoly, oligopoly). One competitivesituation especially central to normative

    economic theory: perfect competition

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    Perfect competition

    Many different sellers each one too small to

    have any independent impact on the market

    Is an ideal in economics. A benchmark for

    judging other supply side situations. Suppliersdo not control /manipulate the market

    Related to theoretical justifications for spatial

    planninginterventions

    Importance of welfare economics

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    Welfare economics

    Deals with:

    1. Allocative efficiency. Is the economy

    getting the most from its scarce

    resources?

    2. Equity. How fair is the distribution of

    goods and services?

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    Allocative efficiency (1)

    Should avoid allocative distortions from a freemarket competitive equilibrium

    Government policy should avoid Paretoinefficient allocations of resources

    Vilfredo Pareto (early 20thcentury Italianeconomist)

    Pareto inefficient: theoretically possible to makesome people better off and no one worse off

    Pareto efficiency: impossible to make somepeople better off without making some peopleworse off

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    Externalities

    Government role in taking into account extra-

    market costs and benefits in decision making ie

    dealing with production and consumption

    externalities An externality arises when an individuals

    production or consumption decision affects the

    production or consumption of others , other than

    through the market

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    Production Externalities

    Negative. Pollution (air ,water..) Hence the

    polluter pays principle.Gulf of Mexico/BP 2010

    Global climate change result of negative

    production externalities? Land use non complementarity (office

    overlooking an abattoir!) Role of land use

    planning in minimising such conflict

    Positive. Spill over effects from agricultural pest

    control. Land use complementarity (e.g. office

    overlooking a square). Role of planning in

    maximising

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    Consumption externalities

    Negative. Traffic congestion. Road pricing.

    Congestion charges. Wind farms?

    Role of planning in minimising negative

    consumption externalities

    Positive. Home improvements and other

    aesthetic choices by individuals in the built

    environment. Role of planning inmaximising

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    Applications of externality theory

    Floods Britain 2014

    Negative externalities from global

    warming

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    Example: Biodiversity Offsetting

    Two year pilot (England/Wales) ends March

    2014

    If planning policy requires compensation forbio-diversity loss, developers in pilot areas

    can offset

    Only if not possible to avoid/mitigate damage Definition: offset provider delivers a

    quantifiable amount of biodiversity benefit to

    offset the loss of biodiversity resulting from a

    development

    Creating New Markets

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    Carbon off-setting

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    Ecosystem services

    are the benefits that

    society derives from

    nature, or asDEFRA put it, what

    nature gives us

    Ecosystem Services

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    Who should pay to restore/protect nature?

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    Putting a price-tag on nature

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    Designating landscapes

    A clearly defined geographical space,

    recognised, dedicated and managed,

    through legal or other effective means, to

    achieve the long-term conservation of naturewith associated ecosystem services and

    cultural values.

    Source: Dudley, N. (2008). Guidelines for Applying Protected

    Area Management Categories. Gland, Switzerland: IUCN.

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    Response to:

    Need to protect against a proliferation of

    other threats e.g. road network, habitats

    shifting due to climate change,

    urbanisation Loss of biodiversity

    Cultural values

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    Why designate?

    Recognises that some landscapesare more important than others andneed increased protection, tomaintain their landscape characterand services

    Particular landscapes, habitats andspecies are targeted for protectione.g. majority of the UKs NationalParks are in uplands (our largest

    semi-natural habitat that supportsmany species of internationalconservation importance)

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    HierarchyI Strict nature reserve Managed for science or wilderness

    protection

    II National park Largely uninhabited managed for

    ecosystem protection and recreation

    III Natural monument Managed for conservation of specific

    features

    IV Habitat/species

    management area

    Areas of conservation through

    management intervention

    V Protected

    landscape or

    seascape

    Aim at balance between humans and

    nature

    VI Managed resource

    protected areas

    Managed for the sustainable use of

    natural ecosystems

    Example: Sites of Special

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    Example: Sites of Special

    Scientific Interest (SSSIs)

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    Designations: Key UK issues

    Land is not/rarely owned by the state in UK Can lead to conflict with land owners

    Key agencies submit proposals for designationunder legislation (normally)

    Rely on partnerships and management plans forimplementation/mediation

    Key stakeholders may have major influence onmanagement committees & plans

    Role of the town and country planning systemin protecting the integrity and character of thedesignated area