Netherlands faces growing economic and spatial challenges for sustainable development

The Netherlands is grappling with increased demand for space due to economic growth, population expansion, and urgent sustainability transitions, according to the "Ruimtelijke Economische Verkenning 2024" report (in Dutch). It calls for a forward-looking policy to ensure that each region contributes effectively to the nation’s overall productivity and sustainability goals.

The report has been published by the Ministry of Economic Affairs, in close cooperation with Frank van Oort, Professor of Urban and Regional Economics at Erasmus School of Economics, and Prof. Gert-Jan Hospers (Radboud University). It highlights how economic activities and urban expansion have intensified the need for land in a densely populated country where nearly all available space is already designated for specific uses.

Sustainability initiatives require more land

Since 2001, the population has grown from 16 to 18 million, driving higher demand for residential, commercial, and industrial land. The report underscores that to sustain economic growth, the government must balance various demands on limited space, particularly as sustainability initiatives require more land for renewable energy infrastructure, waste processing, and a shift towards a circular economy.

Supporting resilient regional economies

Key urban areas, particularly Amsterdam, Utrecht, and Rotterdam, have seen rapid job growth, while industrial productivity remains high in regions like Eindhoven and Rotterdam. However, the report warns that spatial pressures, an aging workforce, and resource-intensive industries pose long-term challenges. The government aims to address these through strategic spatial planning, ensuring that economic and environmental priorities coexist, ultimately supporting resilient regional economies across the Netherlands.

About Frank van Oort

Frank van Oort is Professor of Urban and Regional Economics at Erasmus School of Economics. He obtained his PhD from Erasmus University Rotterdam in 2002 with a doctoral dissertation on agglomeration benefits and innovation in cities. Van Oort combines fundamental research with applied and policy-oriented research. For example, besides NWO and EU funded research, he also conducts research for ministries, cities and regions. He is specialised in agglomeration economies, urban economics, economic geography, urban geography and spatial planning. As of 1 January 2025, Van Oort is appointed as an Erasmus Professor.

Professor
More information

Voor more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl and +316 53 641 846.

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