Author: Erin Tou

Image Source: The Next System, https://thenextsystem.org/learn/stories/episode-2-kate-raworth-doughnut-economics — *Image Source: The Next System,* *https://thenextsystem.org/learn/stories/episode-2-kate-raworth-doughnut-economics*

Growth has long been the overriding metric for measuring progress. Yet in our quest for growth, our rapid overconsumption of Earth’s resources fueled by consumerist culture is having profound impacts on the climate, while at the same time millions of people are unable to have their basic needs met. Mainstream economic theory and policy have largely fallen short of delivering sustainable economic growth. As wealth disparities continue to widen and the impacts of climate change are felt more acutely across the globe, the doughnut economic model has gained popularity in its call for a more holistic approach to measuring progress. At the local level, cities are starting to examine how they can thrive while also supporting the wellbeing of all people and the planet. Rejecting a one-dimensional approach to growth, the Bay Area’s regional long-term planning efforts are reframing challenges to future growth similar to doughnut economics theory by centering planning strategies around the intersectionality of economics, equity, and the environment.

Doughnut Economic Model

Dominant economic theories of the 20th century revolved around growth and high gross domestic product (GDP) as the primary measurement of a society’s success. The doughnut economic model was developed by economist Kate Raworth in 2012 as an alternate to mainstream economics and takes a more holistic approach to what a successful society looks like.

In this new economic model, a successful society resides below the limits of the ecological ceiling and above the social foundation in what is considered the “doughnut”. The hole in the middle of the doughnut is below the social foundation and represents where the basic needs of people, such as food security, health care, education, housing, are not being met. The outer circle of the doughnut is the ecological limit that the planet can support. Going beyond this limit results in various forms of environmental destruction such as climate change, air pollution, biodiversity loss, and the acidification of oceans. This theory challenges prevailing attitudes towards economic growth by suggesting that solely focusing on GDP as a metric of success is inadequate to meet the needs of all people without causing irreversible damage to the environment. A thriving society would instead be residing within the limits of the doughnut – ensuring that all members of society have their basic life essentials met without overtaxing our ecological systems.

Image Source: Time, https://time.com/5930093/amsterdam-doughnut-economics/ — *Image Source: Time,* *https://time.com/5930093/amsterdam-doughnut-economics/*

Implementing the Doughnut at the City-Scale

When scaled down to the local level, the doughnut economic model can be used as a framework to help cities gain a holistic understanding of their community and is intended for big picture thinking and transformative action (Doughnut Economic Action Lab). At the implementation level, stakeholders must establish benchmarks to determine the boundaries of the doughnut. For example, setting a maximum carbon emissions limit or eliminating food deserts citywide are metrics that can be used to bring communities inside the doughnut.

Plan Bay Area 2050

Plan Bay Area 2050 is a long-range regional planning document for the Bay Area that tackles the economy, the environment, housing, and transportation. The planning process is still ongoing and is slated to be completed in the fall of 2021. The Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG) are responsible for the Plan, which will identify policies and investments necessary to ensure a more resilient and equitable future. The Plan doesn’t have the authority to change policies or fund projects, but instead reflects a shared vision for the future of the nine-county Bay Area and a cross-jurisdictional commitment to implement the vision.

Plan Bay Area 2050 developed three distinctly different Futures for the Bay Area to identify a range of scenarios that could shape the future of the region. From these scenarios, 35 strategies that addressed challenges in each Future and would move the region towards the Plan’s vision of creating an affordable, connected, diverse, healthy, and vibrant Bay Area for all were developed. More specifically, the strategies would address housing affordability, build a more accessible transportation network, continue progress towards inclusivity, create a healthier and safer Bay Area, and guide a more balanced growth pattern. An Environmental Impact Report will be developed to analyze the environmental impacts of the strategies. The final phase of this process is the Implementation Plan, which identifies near-term actions that can be taken to implement the strategies. Because the strategies are multi-jurisdictional and require collaboration at different levels of government, the Implementation Plan focuses on engagement with local jurisdictions, public agencies, non-profits, and other planning stakeholders to develop implementation actions and responsibilities.

Image Source: Plan Bay Area 2050, https://www.planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_Strategies.pdf — *Image Source: Plan Bay Area 2050,* *https://www.planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_Strategies.pdf*

Because Plan Bay Area does not include a funding commitment to the identified infrastructure projects, implementation of the Plan is reliant on the ability of agencies to acquire funding. However, as a direct response to the priorities identified in the inaugural Plan Bay Area, MTC created two funding programs in 2013. These programs guided investment priorities, including funds towards transit-oriented developments, climate initiatives, and the region’s transportation system. Although Plan Bay Area does not have the power to fund projects, MTC has the ability to guide and prioritize implementation of the Plan through local and regional investment.

Doughnut Bay Area

Elements of Plan Bay Area 2050 echoes the tenets of the doughnut economic model. Plan Bay Area 2050 takes a holistic approach to managing growth in the Bay Area by addressing transportation, housing, the economy, and the environment while also integrating equity and resilience across these four primary topic areas. However, the regional plan doesn’t have enforcement power and doesn’t provide metrics for determining the constraints of the doughnut. Instead, the Plan provides a platform for state policy makers and local jurisdictions to collaboratively determine the ecological ceiling and social foundation targets to strive for. Plan Bay Area reflects the big-picture thinking of doughnut economics and can be thought of as a stepping stone towards the implementation of the doughnut model.

The shared vision and guiding principles of Plan Bay Area create a framework for what life in the doughnut should look like. The strategies detailed in the Final Blueprint phase of the Plan provide a pathway for moving the region into the doughnut and towards a more balanced, equitable, and sustainable future. For example, the Plan includes strategies such as reform regional transit fare policy, build adequate affordable housing to ensure housing for all, expand job training programs, and expand electrification of buildings. Most of the strategies do not include metrics for determining success but will instead be established by other regional organizations, such as ABAG’s Regional Housing Needs Allocation (RHNA) and California Air Resource Board (CARB)’s emissions targets.

Conclusion

Doughnut economics has gained global traction as an alternate to dominant economic theory. Its more nuanced approach to growth pushes communities to consider what it means to be able to thrive within the planet’s ecological constraints while also ensuring that all people are living above the social foundation. Plan Bay Area has embraced this concept in its multifaceted approach to planning for the future of the Bay Area. As a strategic document that reflects a shared vision and sets the groundwork for regional collaboration, Plan Bay Area pushes the region towards policy changes and infrastructure investments that aim to achieve a more equitable and resilient Bay Area.

Sources

“A Blueprint for the Bay Area’s Future.” Plan Bay Area. Metropolitan Transportation Commission, December 2020. https://www.planbayarea.org/sites/default/files/FinalBlueprintRelease_December2020_Strategies.pdf

Doughnut Economic Action Lab. “The Amsterdam City Doughnut.” March 2020. https://www.circle-economy.com/resources/the-amsterdam-city-doughnut-a-tool-for-transformative-action

“Futures Final Report.” Plan Bay Area. Association of Bay Area Governments and Metropolitan Transportation Commission, January 2020. https://mtc.ca.gov/sites/default/files/Horz_Futures_Report.web_.pdf

“Implementation Plan.” Last modified January 4, 2021. https://www.planbayarea.org/2050-plan/implementation-plan

“MTC Adopts Proposals to Fund Major Transit Improvements, Reduce Greenhouse Gases.” Last modified December 20, 2013. https://www.planbayarea.org/news/news-story/mtc-adopts-proposals-fund-major-transit-improvements-reduce-greenhouse-gases

Nugent, Ciara. “Amsterdam Is Embracing a Radical New Economic Theory to Help Save the Environment. Could It Also Replace Capitalism?” Time, January 22, 2021. https://time.com/5930093/amsterdam-doughnut-economics/

“Plan Bay Area 2050.” Last modified November 4, 2020. https://www.planbayarea.org/plan-bay-area-2050-1

“Plan Bay Area 2050 Vision.” Last modified November 2, 2020. https://www.planbayarea.org/about/plan-bay-area-2050-vision

Raworth, Kate. “A Healthy Economy Should be Designed to Thrive, Not Grow.” TED Talk. April 2018. Video, 15:46. https://www.ted.com/talks/kate_raworth_a_healthy_economy_should_be_designed_to_thrive_not_grow

Raworth, Kate. “A Safe and Just Space for Humanity.” Oxfam, February 13, 2012. https://www-cdn.oxfam.org/s3fs-public/file_attachments/dp-a-safe-and-just-space-for-humanity-130212-en_5.pdf

Raworth, Kate. “Downscaling the Doughnut to the City.” YouTube. July 19, 2020. Video, 11:21. https://www.youtube.com/watch?v=YCqGf7T9ABo&ab_channel=DoughnutEconomicsActionLab

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