Urban Economics involves the study of urban issues such as housing, education, public transport and crime using economic tools. Reinventing PHX Phoenix plan calls for Transit Oriented Development (TOD), which is a program for building a walkable opportunity-endowed society, linked with high capacity public transport. The aim of TOD is to make public transit as well as walking and cycling convenient, safe, and thus enjoyable.
First, there is the issue of urban sprawl. Phoenix residents are expanding to low density and car-dependent communities and away from the central urban areas. Usage of a private car is an expense that increases the cost of living. For many low and moderate-income earners living in these areas affected by urban sprawl, paying for transportation is mostly a struggle. With TOD, these families will be spending a minimum percentage of their household budget compared to those who are automobile dependent. TOD project would also enhance social connectivity in Phoenix between those communities in the city’s center and those in urban sprawl areas. This connectivity will enable the Phoenix communities to solve problems such as urban crimes and to participate in the city’s cultural aspects collectively as streets will be designed for walking with the aim of improving interaction among residents. Secondly, TOD addresses the prominent issues of urban growth that has been peaking in Phoenix. As the city grows, there’s need to check such things like land use. Under land use, the TOD economists will analyze the spatial organization of the city’s activities. Successful application of this economic analysis will lead to better and effective zoning of households and firms. Last the economics of the closed and open city. For a closed Phoenix city, TOD will lead to a successful business environment by increasing the local Phoenix consumer base and offering opportunities for starting new business enterprises. In a closed city, the residents will not migrate either in or out of the city. For this reason then the residents will be able to enjoy the general population benefits that come with the improvement in general economy growth such as reduced prices for goods. TOD will also lead to the open city situation by creating magnet sites in Phoenix. The magnet site creation will come about due to the cheap housing and transit in and within the city. Affordable rent, for instance, will attract people into Phoenix thus increasing the population that is good for entrepreneurship and high-wage businesses who will have access to a large market and a large pool of labor respectively.
In conclusion, Reinvent PHX plan will be beneficial to all the residents of Phoenix city. They will be able to access the goods and services they need with ease and with variety. The government will also be able to raise more revenues from the increased commercial activities. These revenues will, in turn, be used for the provision of utilities for the usage of the resident