Compact, electrified cities can greatly reduce emissions and costs in the US
A bold new report from the Institute for Transportation and Development Policy (ITDP) and UC Davis shows that a cleaner, more efficient, and more equitable urban transport future is not only possible for the United States it’s financially smarter, too.
Titled Compact Cities Electrified: United States, the research lays out a transformative vision: cities where walking, cycling, and public transit are the norm supported by an electrified vehicle fleet and compact urban design that shortens trips and improves daily life. This vision isn’t a far-off dream. According to the study, it’s a feasible, cost-saving reality if policymakers are willing to change direction.
By combining vehicle electrification with compact city planning and sustainable mobility, the US could cut public transport-related spending by a staggering $2 trillion by 2050. And this isn’t about spending more it’s about spending smarter. The researchers stress that this shift would require no new public funding, only a reallocation of existing resources. In fact, it would cost less than continuing down the current path.
For everyday Americans, the benefits are just as striking. Urban residents could save an average of $2,000 per year by mid-century thanks to lower fuel, maintenance, and travel costs, plus more accessible and affordable transport options.
Perhaps most importantly, this Electrification + Shift scenario offers a clear path to meeting the country’s climate goals. But here’s the catch: no single strategy can get us there alone. It’s the combination clean vehicles, compact urban form, and mode shift that unlocks the full potential.
What Needs to Happen
The report identifies three essential building blocks:
- Electrification: Transition all new car and light truck sales to electric by 2050.
- Compact, Mixed-Use Cities: Increase urban population densities to about 17,000 people per square mile comparable to Los Angeles today through better land use planning.
- Modal Shift: Reallocate road funding to build people-centered infrastructure like 190,000 lane miles of protected bike lanes, 26,000 miles of bus rapid transit, 2.6 million new buses, and 18,000 new train cars while ending new urban highway construction.
The result? A more equitable, livable, and resilient transport system that reduces traffic congestion, cuts pollution, and improves access to opportunity particularly for low-income and marginalized communities who are often left behind by car-centric planning.
A Turning Point
The report was officially launched at a high-level event in Washington, DC, co-hosted by ITDP and Transportation for America (T4A), drawing federal and local officials, advocates, and researchers. Representatives from the US Department of Transportation (USDOT) emphasized their commitment to decarbonization and pointed to the agency’s National Blueprint for Transportation Decarbonization as a key alignment with the report’s findings.
This US-focused study is the latest in a global series grounded in ITDP and UC Davis’s 2021 Compact City Scenario–Electrified model, which showed how coordinated action on electrification and sustainable urban design could drive global emissions reductions. Previous country reports on India and Egypt revealed that this same combined approach holds promise across vastly different national contexts.
Why It Matters
Climate change, rising inequality, and aging infrastructure all demand a fundamental rethink of how we move around cities. But this isn’t just about emissions it’s about better living. Compact, electrified cities can mean shorter commutes, cleaner air, healthier lifestyles, and stronger communities. The data is clear. The opportunity is real. And the moment to act is now.
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