Smart cities and urban inequality

Abstract

Smart city technologies are criticized because they might exacerbate income inequalities. Four factors are suggested to explain this phenomenon: the uneven diffusion of information and communication technologies (ICTs); that these ICTs cannot be afforded by low-income citizens; that smart cities could further human capital divides; and the involvement of private actors in the implementation of projects. These critiques are not based on empirical verification. We test whether smart urban characteristics are associated with increases in urban income inequalities, using data on urban smartness and urban income inequality for 106 European cities. Results show that smart cities are associated with lower levels of urban income inequality.