Events

Dr. REMI JEDWAB
Associate Professor of Economics and International Affairs
The George Washington University

We show that tall buildings represent a transformative technology that has been central in facilitating sustainable urbanization and growth. Using supply side variation for identification, we demonstrate that the average elasticity of city population to aggregate city building heights is 0.12, and that of city built area to heights is -0.17. Land saved from development by post-1975 tall building construction is over 80% covered in vegetation. To isolate the effects of technology-induced reductions in the cost of height from correlated demand shocks, we use interactions of static demand differences and the geography of bedrock as instruments for observed changes in height, a triple difference identification strategy. Central to the analysis is newly organized data on the population, land area, and a measure of total height for 1975-2015 in 12,877 cities worldwide. Quantification using a canonical urban model suggests that global welfare has increased by 1.1% as a result of declines in the cost of height. Benefits could triple if constraints to vertical development were relaxed.