Abstract
The integration of Internet of Things technologies in urban areas aims to make life in cities more efficient, cost-effective, and sustainable. This article analyzes the smart city initiatives of Singapore, Amsterdam, Hong Kong, Toronto, and Songdo to discuss the potential benefits and ethical implications that these new technologies present. Successful projects have resulted in emission reductions and improved public services. However, the failures of other initiatives highlight ethical issues concerning data privacy, privatization, and unequal access. The analysis of these five cities emphasizes the importance of transparency and constant public engagement in implementing smart technologies in cities.
Introduction
Cities are becoming “smarter”; more and more cities are integrating technology into their infrastructure with the goal of increasing efficiency and reducing negative environmental impacts. Due to increasing connectivity and a growing focus on climate change globally, smart city technologies have become an integral part of urban planning today. Some cities have successfully adopted smart technologies, whereas others have struggled, providing an opportunity to explore the ethical implications of the projects. In order for smart cities to be a sustainable solution for the future, they must address the needs of diverse groups and ensure responsiveness to public feedback.
IoT Technologies and Smart Cities
As city populations have grown, so has the demand for energy, leading many cities to look towards innovative solutions. Smart cities are urban areas that integrate Internet of Things (IoT) technologies to promote sustainability and improve the quality of life of their residents [1]. The Internet of Things refers to “the network of physical objects—’things’—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet” [2]. By collecting data from residents and communicating between sectors, cities can operate more efficiently and cater to residents’ needs. Although the Internet of Things is a relatively new concept, it has become a defining technology of the 21st century [2]. In 2023, there were nearly 16 billion connected devices in the world across industries such as healthcare, urban development, and agriculture [3]. This number is projected to increase to over 32 billion devices by 2030 [3]. From smart thermostats in homes to traffic sensors on city streets and even health trackers inside of cows’ stomachs, these technologies present a considerable opportunity to keep cities and their growth sustainable amidst climate concerns, rapid digitization, and rising populations [4].
History
Although the term “Internet of Things” was not popularized until the 2000s, the concept of connecting physical objects to the internet was discussed as early as 1982 [5]. David Nichols, a graduate student at Carnegie Mellon University, invented the first IoT device. His initial motivation was simple: He was tired of walking from his office to the Coca-Cola vending machine to find that his favorite beverage was out of stock [5]. He wanted to create a way to check the machine’s inventory from the comfort of his desk. With the help of some of his peers, Nichols attached wires to the stock light indicators on the machine and connected them to computers in the science department so that people could check the status of the lights from their screens [5]. A couple of years later, engineers John Romket and Simon Hackett from San Jose, California, successfully connected a toaster to the internet, turning it on and off remotely [4]. Although these technologies may seem trivial, the ideas behind remote monitoring and smart appliances shaped the future of all IoT technologies.
In 1999, computer scientist Kevin Ashton officially coined the term “Internet of Things” in his proposal to install trackers on products to monitor the time they spent in certain parts of the supply chain [6]. Ashton believed that “if we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss, and cost” [7]. Ashton recognized the value of automated data collection, which would become the foundation of the Internet of Things. As the technology advanced, this premise could be applied on a much larger scale, resulting in citywide projects.
One of the first smart city initiatives was developed by IBM in 2008, called the Smarter Planet initiative [8]. The Smarter Planet initiative outlined how advanced data collection through sensors in energy systems, street lights, and other infrastructure could address problems presented by the growing urban populations. In a speech introducing the project, IBM’s CEO Sam Palmisano encouraged people to “think about the prospect of a trillion connected and intelligent things” and the power this connectivity could have in sharing information and creating “smarter” systems [9]. The project aimed to bridge the gap between different utilities (water, energy, etc.) and provide a more holistic view of city operations [9]. The Smarter Planet initiative claimed it had the potential to reduce carbon dioxide emissions by over 50%, along with reductions in waste and water usage [9]. Real-time insights from IoT technologies in IBM’s proposed smart city would also help government agencies better prepare for potential problems, such as identifying when maintenance is needed on a road before a major accident occurs [9]. The initiative created a framework and a set of tools that cities could adopt to develop smart cities. This led smart city projects to begin across the world. However, the plan was launched when IoT was still developing. Later iterations of these technologies exposed the financial and social challenges in implementation, especially for cities with smaller urban development budgets.
Successful Smart Cities
By 2050, it is estimated that nearly 70% of the world population will live in cities [10]. A corresponding growth in energy consumption is accompanying this rapid population growth. The International Energy Agency reports that cities account for 75% of energy consumption and 70% of greenhouse gas emissions worldwide [11]. IoT technologies offer a promising solution to this problem. If implemented correctly, smart cities have the potential to reduce emissions, decrease living costs, and make day-to-day activities more efficient. The success of each smart city project depends on how well it reflects the needs of the community it serves. The most successful smart cities – such as Singapore and Amsterdam – involve residents in all stages of development and consider the perspectives of diverse stakeholders.
Singapore is often regarded as the top smart city in the world, having launched its Smart Nation initiative in 2014 [12]. The initiative supported smarter public transportation, collaboration between sectors, and digitized government services [13]. Today, the Mass Rapid Transit system utilizes smart technology to automate train control and provide accurate arrival and departure information to passengers, reducing overcrowding and wait times in stations [14]. The EZ-link digital payment system simplifies ticket purchases and collects data on travel patterns that help the country optimize routes [15]. Additionally, the Singapore government collaborates with private rideshare and bus companies to gain comprehensive insights into travel patterns [15]. The efficiency and reliability of Singapore’s public transportation encourage widespread use.
Singapore has introduced mobile apps, such as Singpass and HealthHub, to streamline government services. Singpass functions as a digital form of identification that allows users to book medical appointments, manage banking transactions, and more [16]. HealthHub provides patients and doctors easy access to medical records and consolidates all of a patient’s information in one place [17]. The app enhances patient care by eliminating inconsistencies between providers and allowing patients to be more informed about their health. In the digital age, these apps are essential tools for residents in improving their access to necessary information.
Amsterdam is another city that is largely regarded as a leading example of a sustainable city [18]. The Amsterdam smart city project was introduced in 2009 with an emphasis on reducing emissions and making the city more resilient to climate change [19]. Energy grids, creative architecture, and resident involvement are central to Amsterdam’s smart city initiative. Smart grids utilize sensors to collect data on usage patterns and reduce wasted energy [20]. Smart load control switches optimize distribution during periods of peak usage by drawing energy from decentralized power sources, such as small-scale solar or wind plants [20]. For example, individual homes with their own solar systems can generate energy for personal use and sell any excess energy back to the grid, which reduces dependence on centralized power plants and creates a financial incentive for people to adopt renewable energy [19].
Amsterdam’s smart city initiative has been especially successful due to innovative architecture tailored to the specific needs of neighborhoods. For instance, “blue-green” roofs feature sensors that control rainwater storage, manage urban flooding, and reduce temperatures [21]. The roofs use smart flow control sensors that predict rainfall patterns, determining how much water is stored and released. The systems operate autonomously and require little maintenance while still delivering significant benefits. The green component of these roofs refers to a top layer of plants that enhances biodiversity and supports the growth of native plants, which can reduce city temperatures [21].
A key factor of Amsterdam’s smart city initiative is its emphasis on citizen involvement and transparency. The city uses an online platform to promote conversations about new projects, where private, public, and academic sectors can all collaborate. Anyone can propose ideas, from citizens to government agencies, and they will be matched with potential implementation partners. This encourages citizens to propose neighborhood-focused projects and vocalize their needs [22]. Additionally, Amsterdam provides citizens access to all data collected through IoT technologies across the city through a portal called City Data. The data promotes the transparency of these projects while remaining anonymized to protect people’s privacy [23]. The combination of these two platforms keeps residents informed and engaged with the smart technology in their city.
The Source of Ethical Complications
Singapore and Amsterdam showcase the potential of smart city projects. These initiatives have improved efficiency, sustainability, and quality of life for residents. However, cities are diverse ecosystems, and what increases the well-being of one neighborhood may negatively impact another. Creating solutions that accurately reflect a city’s individual economic, social, and environmental goals is extremely difficult [8]. There are ethical implications to smart city technologies that do not sufficiently consider these factors. A major concern of IoT technology is the risk of personal data misuse or mishandling.
Additionally, the privatization of public services raises questions about the motivations of these projects. Finally, marginalized groups often don’t share in the benefits of these technologies equally. Smart city projects must address these concerns to ensure that they do not compromise ethical standards.
Privacy and Data Use
Large amounts of data are necessary for smart cities to function properly, but this creates concerns regarding data privacy. In 2017, Hong Kong installed smart lamp posts equipped with sensors to monitor air quality and CCTV cameras to detect illegal waste disposal [24]. Citizens feared the lamp posts had facial recognition capabilities and were being used for surveillance of the ongoing protests in the city. Little information regarding how the data collected by these lamp posts is being used had been made public, and iOmniscient, the company that designed the technology, declined to provide any further details [25]. These unassuaged concerns led protestors to damage the lamp posts and call for their immediate removal [26].
Hong Kong’s smart lamp posts can be analyzed using rights-based ethics, a framework that emphasizes the protection of human rights, such as individual autonomy and privacy. The Markkula Center for Applied Ethics at Santa Clara University defines a right as “a justified claim on others,” where what is considered justified is based on socially accepted standards [27]. The Universal Declaration of Human Rights is a widely acknowledged standard, and Article 12 states that “No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence… Everyone has the right to the protection of the law against such interference or attacks” [28].
In the case of Hong Kong’s smart lamps, citizens have a justified claim. The lack of clear communication from the government about how the data is being collected and used constitutes an arbitrary interference with individuals’ right to privacy. If citizens are unable to make informed decisions about the use of their personal data, their right to privacy is undermined. Citizens in Hong Kong have no protection from these violations because they lack access to sufficient information on how the technology works or is being used. Without this transparency, there is no way for citizens to hold the government accountable or seek protection under the law.
There is another ethical challenge here in balancing a respect for people’s right to privacy with the potential benefits of data collection for the public good. This balance can be analyzed through the lens of duty ethics. Duty ethics teaches that one must do the right thing, even if doing the wrong thing produces positive outcomes [29]. A good outcome does not justify using unethical means to achieve it. From a duty-based ethical perspective, Hong Kong has a responsibility to prioritize citizens’ rights over the potential benefits of surveillance. This means that if collecting data improves citizens’ lives, the city must guarantee that no wrong is done in the process; all citizens should know exactly how their data is being used and who has access to it. Additionally, there must be systems in place to hold authorities accountable for violations of privacy. By upholding the principles of both rights ethics and duty ethics, cities can find the balance between innovation and privacy.
Privatization
Many of these smart city technologies require funding and are developed by private companies, which raises ethical concerns about private companies gaining control over public services [30]. The ethical issues with privatization were highlighted in 2017 when Sidewalk Labs, a subsidiary company of Alphabet, announced its plans to create a smart city in Toronto. The initiative projected it would create nearly 4,000 jobs, help the city reach its sustainability goals, and benefit Toronto’s economy as a whole. It included classic elements of smart cities, such as sensors to monitor traffic, housing density, trash management, and other city services [31]. However, the initiative was quickly met with opposition from residents due to Sidewalk Labs’ monetization of public infrastructure. The lack of public support eventually caused the company to abandon the project in 2020 [32].
Sidewalk Labs’ failed smart city can be examined using social contract theory, which asserts that authoritative bodies have an obligation to protect their people and act in their best interests. In the United States, the Constitution is an example of a social contract that outlines the responsibilities of the government and citizens [33]. Under the Constitution, citizens surrender certain freedoms to the government, but they do so with the belief that the government will protect their rights and provide public services [34]. However, private companies are not necessarily bound by the same social contracts as the government.
The large role of private companies like Sidewalk Labs in managing public services can be seen as a breach of this contract, as it goes against the government’s obligation to provide public services that align with citizens’ best interests. Residents rely on authorities to adopt new technologies that will enhance their lives and comply with regulatory standards. It isn’t easy to trust that companies like Sidewalk Labs are prioritizing the public good when they are motivated by profit. Although the involvement of private companies is unavoidable, cities must guarantee that the companies they are working with have the right motivations and are responding to the feedback from the citizens that these technologies are meant to benefit [32].
Equity in Smart City Access
Smart city technologies have the potential to improve urban life, but there have been challenges in ensuring that these benefits are shared equally by all residents. A good case study for this concern is the smart city Songdo. In 2008, Songdo was built on 1,500 acres of reclaimed land in the southwest of South Korea [12]. The blueprint of the city included advanced irrigation systems, air quality sensors, smart home technologies, and trash systems [12]. The vision of the city was to be a hub for international business, research, and innovation, and the project gained substantial support from both wealthy residents and the government [35]. However, Songdo has not lived up to its expectations; the construction is not complete, and the city is only one-third populated. This is due to an issue of “little relevance [being] given to the human factor” during the city’s development [36]. The “human factor” describes the needs and behaviors of the people who live in a city, which should be at the core of the development of all cities.
Songdo is an example of an “innovation zone,” which refers to a smart city initiative that does not reflect the needs of the city and primarily benefits certain neighborhoods or groups [37]. Innovation zones can be evaluated using the justice and fairness ethical framework. This framework says that everyone should be treated equally unless there are justifiable grounds for different treatment. Justifiable criteria, such as need, contribution, and effort, can be used to explain when different treatment is acceptable [38]. Wealth is not a justifiable criterion, so in this sense, smart cities that cater predominantly to affluent groups are not ethical. Innovation zones expose a growing risk that increasingly digitized cities will reinforce existing inequalities.
Instead of focusing on being as technologically advanced as possible, the Songdo initiative should have prioritized designing a city around the needs of all residents, not just the wealthy. Advanced smart infrastructure does not directly result in better cities, which Songdo demonstrates [39]. Although the city’s technologies are impressive from an outside perspective, they have not necessarily improved daily life for residents. Lindy Wenselaers, a Songdo resident who moved from Belgium for work, shares her experiences living in the city [40]. She highlights the disparities in the quality of housing, expressing how much nicer and more advanced her friend’s apartment in a different neighborhood is. Wenselaers reflects that the city’s biggest flaw is the lack of community, especially for foreigners and those who are not wealthy. Songdo was marketed as a center for international business and improved living standards, but Wenselaers’ story uncovers the ways in which the city has fallen short. It is actively detracting from the quality of life of its residents by reinforcing boundaries between social classes and catering only to the wealthy. For smart cities to be ethical, they must consider the needs of a diverse range of residents so that new technologies benefit all groups.
Conclusion
The key to making smart cities ethical is including the public in the design and implementation of new technologies [41]. Singapore’s and Amsterdam’s smart city initiatives demonstrate the success of this approach, as both cities are highly interactive and transparent with their residents. On the other hand, Hong Kong’s, Toronto’s, and Songdo’s projects reveal the major ethical consequences of smart city technologies that do not prioritize the residents they are supposedly being created for. In Hong Kong, citizens worry their smart city is collecting personal data without their knowledge and using it in ways they are not privy to. In Toronto, the smart city project failed due to residents’ concerns regarding the effects of private companies controlling public resources. And, in Songdo, smart city technologies were designed to benefit certain groups, largely overlooking the needs of the majority of residents. The common theme in these unsuccessful projects is a lack of involvement and response to residents’ feedback.
Engineers play a critical role in preventing the ethical problems seen in Songdo, Hong Kong, and Toronto. Collaboration with residents should start as early as the design phase of new technologies. The IEEE Standards Association P2784 provides a framework for doing so, establishing a comprehensive guide for ethical smart city development. The standard emphasizes the inclusion of diverse stakeholders, transparent communication with residents, and continuous management of technologies [42, 43]. The first step to creating inclusive smart cities is for engineers to become familiar with the area in which the new technologies are being introduced, considering the needs of all future residents. With this understanding, engineers can propose and design technologies that are responsive to these needs. After implementation, smart cities require constant maintenance and communication with the public. Engineers should encourage feedback through discussion forums, like those seen in Amsterdam, where they can engage directly with residents. The success of these projects is dependent on more than just reduced emissions or increased efficiency. By advocating for transparency within their organizations, engaging with residents at all stages of development, and adhering to ethical standards, engineers can help smart cities reach their full potential.
By Jess Beastrom, Marshall School of Business, University of Southern California
About the Author
At the time of writing this paper, Jessica Beastrom was a junior at the University of Southern California majoring in Business Administration. She is originally from Minneapolis, Minnesota. In her free time, Jessica enjoys hiking, yoga, and spending time with her two dogs, Rossi and Sammy.
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Further Reading
https://www.sciencedirect.com/science/article/pii/S2515856220300122
https://www.forbes.com/councils/forbestechcouncil/2023/06/05/18-smart-city-technologies-that-will-genuinely-improve-urban-living/
https://spectrum.ieee.org/smart-city-emergency-response