Opportunities for Value Capture to Fund Public Transport: A Comprehensive Review of the Literature with Examples from East Asia

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.

• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Salon, Deborah
  • Shewmake, Sharon
• Conference:
  • Transportation Research Board 91st Annual Meeting
  • Location: Washington DC, United States
  • Date: 2012-1-22 to 2012-1-26
• Date: 2012

Language

• English

Media Info

• Media Type: Digital/other
• Features: References; Tables;
• Pagination: 18p
• Monograph Title: TRB 91st Annual Meeting Compendium of Papers DVD

Subject/Index Terms

• TRT Terms: Case studies; Financing; Land values; Literature reviews; Real estate development; Value capture
• Geographic Terms: East Asia
• Subject Areas: Finance; Public Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01367815
• Record Type: Publication
• Report/Paper Numbers: 12-1267
• Files: TRIS, TRB
• Created Date: Apr 13 2012 7:16AM