01367815

Component

Successful public transport systems increase the value of surrounding land. Value capture is the concept that government may be able to capture at least part of this increase in land value along public transport corridors, and use these funds to subsidize the system. The authors shed light on when and how value capture could be used to finance public transit by surveying three strands of literature related to value capture: evidence of the land development impacts of public transport, estimates of land value increases attributable to public transport, and case studies of the use of value capture mechanisms to finance public transport. They find that the best strategies for implementing value capture policies are not the same everywhere. They depend on the particulars of the city's institutional capabilities, as well as the general health of the local economy and the local land development industry. The value capture mechanism that works best for each city will depend on the capacity of the government to track the value of land and to levy land taxes, the government’s ability to assemble and acquire land at a favorable price, and its capacity to act as a savvy business partner in land development.

01362476

12-1267

English

18p

2012

Transportation Research Board 91st Annual Meeting

Digital/other

References; Tables

Case studies; Financing; Land values; Literature reviews; Real estate development; Value capture

East Asia

Finance; Public Transportation; I10: Economics and Administration

Transportation Research Board Annual Meeting 2012 Paper #12-1267

TRIS, TRB

Feb 8 2012 5:00PM