Economic effects, regional scope and climate protection impact of urban development funding

Urban development funding has been one of the most important instruments of the German urban development policy for 50 years. Investment in urban infrastructure has become a versatile instrument of a holistic and integrated urban development policy. The Federal Government, the federal states and the municipalities attach great cultural, economic and social importance to urban development funding and finance it in a spirit of partnership. With urban development funding, municipalities are provided with a constantly evolving set of instruments that support them in tackling urban deprivation and loss of function.

In this project, the effects of urban development funding on climate protection and adaptation to climate change are evaluated for the first time. The project analyses the extent to which municipalities use funding for climate action or adaptation measures and what greenhouse gas reductions are achieved as a result. In addition, the economic effects of urban development funding, i.e. the triggering and bundling effects as well as the regional scope are examined. The analyses are based on detailed studies of 60 case municipalities.