The AFR has a report on the latest offering from the tax-payer financed Grattan Institute (courtesy of the ALP and surprisingly labelled “independent Melbourne-based advisers”). I haven’t read the actual paper – but I do agree with the premise as reported by the AFR:
… 80¢ of every dollar from goods and services is generated on just 0.2 per cent of the country’s land mass.
A new report from independent Melbourne-based advisers the Grattan Institute has found Sydney and Melbourne’s central business districts, which measure 7.1 square kilometres combined, generate 10 per cent of all goods and services – three times more than the agricultural sector.
The findings challenge local and state government planning policy, which has encouraged businesses and government offices to relocate to non-CBD areas to spread employment opportunities, reduce congestion and enable more people to live near their workplace, as cities generate higher levels of productivity per hour worked.
Economic prosperity is not a return to “land” but rather the return to human ingenuity, trade, and the size of the market. Policies that make it harder to access the CBD – like parking taxes – restrain economic prosperity.