1887

OECD Regional Development Papers

Papers from the Centre for Entrepreneurship, SMEs, Regions and Cities of the OECD cover a full range of topics including regional statistics and analysis, urban governance and economics, rural governance and economics, and multi-level governance. Depending on the programme of work, the papers can cover specific topics such as regional innovation and networks, sustainable development, the determinants of regional growth or fiscal consolidation at the subnational level.

English

Financing transportation infrastructure through Land Value Capture

Concepts, tools, and case studies

With tightening public finances, land value capture (LVC) can be an attractive fiscal tool to finance ever-increasing demands for transport infrastructure. This paper begins by discussing the principles of LVC and individual LVC instruments in the context of infrastructure provision, with a focus on the opportunities and challenges for LVC implementation. It then presents unique case studies of LVC use in France, Japan, Korea and the United Kingdom, highlighting how it was used to fund the construction of major subways and railways. Based on these case studies, the paper discusses some key insights, including how to use LVC together with expropriation, enacting enabling legal frameworks, and diversifying revenue streams. It also highlights some common considerations for successful implementation, most notably for eliciting public support, promoting transit-oriented development, and establishing fair and transparent rules for LVC.

English

Keywords: urban development, subnational finance, transportation infrastructure, land value capture
JEL: R58: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Development Planning and Policy; R52: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Government Analysis: Land Use and Other Regulations; R14: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Land Use Patterns; R51: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Finance in Urban and Rural Economies
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error