A Counterfactual Framework for Urban Decarbonization Policy
University of Calgary
2026-07-08
Traditional Approaches: * Separate treatment of density (e.g., population/employment density). * Ignores compounding feedback loops. * Prone to omitted variable bias from unobserved sorting.
Proposed Framework: * Treats land use configurations as a joint multi-valued treatment. * Explicitly models the structural interactions between built form features. * Acknowledges the Lifeworld-System dynamics governing household location and travel choices.
To evaluate the true impact of structural interventions, we define the causal effect using potential outcomes. Let \(Y_i(t)\) be the potential FFCO₂ emissions of zone \(i\) under joint land use treatment vector \(t \in \mathcal{T}\).
\[\tau(t, t') = \mathbb{E}[Y_i(t) - Y_i(t')]\]
We utilize Generalized Propensity Scores (GPS) to adjust for multi-valued joint treatments, ensuring covariate balance across disparate urban fabrics:
\[R = r(T, X) = f_{T|X}(T|X)\]
Core Assumption (Weak Ignorability): Conditional on observable spatial and demographic covariates \(X\), the assignment to a specific land use intensity \(T\) is orthogonal to the potential emissions outcomes.
We specify a multi-equation structural system where spatial parameters are evaluated simultaneously.
\[Y_{\text{FFCO2}} = \alpha + \mathbf{\beta \cdot T_{\text{Joint}}} + \mathbf{\gamma \cdot X} + \epsilon\]
| Treatment Mix (\(T_{\text{Joint}}\)) | Density Metric | ATE (\(\Delta\) Tonnes CO₂/yr) | Std. Error |
|---|---|---|---|
| Baseline (Sprawl Suburban) | Low | Reference | — |
| Transit-Oriented Core | High | \(-42.3\) | 3.12 |
| Balanced Mixed-Use | Med-High | \(-28.7\) | 2.45 |
| Jobs-Rich Compact | High | \(-34.1\) | 2.89 |
Policy Implication:
Single-dimension zoning amendments (e.g., merely increasing allowable floor-area ratios) are structurally insufficient. Interventions must be bundled.
Urban form is a highly coupled system. Only by evaluating the joint treatments of density, diversity, and network design can we reliably predict—and realize—the deep decarbonization of urban transportation networks.
Thank you! Questions & Collaborative Discussion
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