The background paper is focused on the effects of the policy which restricts cities’ territorial growth. ‘Green Belt’ is a ring of agricultural or natural lands established around the city with the purpose to limit its territorial expansion and preserve healthy environment. However, the experience of London and many other cities shows that Green Belt policy is not very efficient in protecting environment. Green Belts provoke a rapid increase in real estate prices and promote ‘bad mobility’. Therefore experts in different countries believe that less restrictive Green Wages policy is better alternative to the rigid Green Belts.
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