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Financing Transit-Oriented Development with Land Values : Adapting Land Value Capture in Developing Countries


  • Hiroaki Suzuki
  • Jin Murakami
  • Yu-Hung Hong
  • Beth Tamayose


Cities in developing countries are experiencing unprecedented urban growth. Unfortunately, this is often accompanied by the negative impacts of sprawl as a result of rapid motorization such as congestion, air pollution, greenhouse gas emissions, inefficient use of energy and time, and unequal accessibility. As these cities are often under severe fiscal constraints, they face great challenges in financing capital-intensive mass transit systems to reverse the course of these negative trends. Development-based land value capture (DBLVC) financing schemes being practiced in Asian megacities like Hong Kong SAR, China, and Tokyo have helped them not only to generate funds for transit investment and operational and maintenance costs but also to promote sustainable urban development through transit-oriented development (TOD). Many rapidly growing cities in developing countries have the conditions for introducing DBLVC – namely, strong economic growth, rising real incomes and increased motorization and congestion levels – all of which cause land value appreciation within proximity of transit stations or corridors. If adapted well to local contexts, DBLVC schemes have great potential to become an important strategic apparatus of urban finance and planning for cities in developing countries. Through a careful analysis of various case studies, this book provides strategies, policies, and methodologies that policy makers and practitioners can apply in developing their own DBLVC schemes for transit financing.

Suggested Citation

  • Hiroaki Suzuki & Jin Murakami & Yu-Hung Hong & Beth Tamayose, 2015. "Financing Transit-Oriented Development with Land Values : Adapting Land Value Capture in Developing Countries," World Bank Publications, The World Bank, number 21286, June.
  • Handle: RePEc:wbk:wbpubs:21286

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    References listed on IDEAS

    1. Hiroaki Suzuki & Robert Cervero & Kanako Iuchi, 2013. "Transforming Cities with Transit : Transit and Land-Use Integration for Sustainable Urban Development [Transformando las ciudades con el transporte público : integración del transporte público y el," World Bank Publications, The World Bank, number 12233, June.
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    Cited by:

    1. Yu Qin, 2016. "China's Transport Infrastructure Investment: Past, Present, and Future," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(2), pages 199-217, July.
    2. Thi Mai Chi Nguyen & Hironori Kato & Le Binh Phan, 2020. "Is Built Environment Associated with Travel Mode Choice in Developing Cities? Evidence from Hanoi," Sustainability, MDPI, Open Access Journal, vol. 12(14), pages 1-1, July.
    3. Wang, Jinshuo & Samsura, D. Ary A. & van der Krabben, Erwin, 2019. "Institutional barriers to financing transit-oriented development in China: Analyzing informal land value capture strategies," Transport Policy, Elsevier, vol. 82(C), pages 1-10.
    4. Kok, Sien & Bisaro, Alexander & de Bel, Mark & Hinkel, Jochen & Bouwer, Laurens M., 2021. "The potential of nature-based flood defences to leverage public investment in coastal adaptation: Cases from the Netherlands, Indonesia and Georgia," Ecological Economics, Elsevier, vol. 179(C).
    5. Murakami, Jin, 2018. "The Government Land Sales programme and developers’ willingness to pay for accessibility in Singapore, 1990–2015," Land Use Policy, Elsevier, vol. 75(C), pages 292-302.
    6. Wang, Weifang & van Noorloos, Femke & Spit, Tejo, 2020. "Stakeholder power relations in Land Value Capture: comparing public (China) and private (U.S.) dominant regimes," Land Use Policy, Elsevier, vol. 91(C).
    7. Natacha Aveline-Dubach & Guillaume Blandeau, 2019. "The political economy of transit value capture: The changing business model of the MTRC in Hong Kong," Urban Studies, Urban Studies Journal Limited, vol. 56(16), pages 3415-3431, December.
    8. Gharad Bryan & Edward Glaeser & Nick Tsivanidis, 2019. "Cities in the Developing World," NBER Working Papers 26390, National Bureau of Economic Research, Inc.
    9. Arturo Ardila-Gomez & Adriana Ortegon-Sanchez, 2016. "Sustainable Urban Transport Financing from the Sidewalk to the Subway," World Bank Publications, The World Bank, number 23521, June.
    10. Shengxiao Li & Luoye Chen & Pengjun Zhao, 2019. "The impact of metro services on housing prices: a case study from Beijing," Transportation, Springer, vol. 46(4), pages 1291-1317, August.
    11. Alpkokin, Pelin & Topuz Kiremitci, Sabahat & Black, John Andrew & Cetinavci, Sukru, 2016. "LRT and street tram policies and implementation in turkish cities," Journal of Transport Geography, Elsevier, vol. 54(C), pages 476-487.
    12. Mohammed Ali Berawi & Gunawan Saroji & Fuad Adrian Iskandar & Bernard Elpetino Ibrahim & Perdana Miraj & Mustika Sari, 2020. "Optimizing Land Use Allocation of Transit-Oriented Development (TOD) to Generate Maximum Ridership," Sustainability, MDPI, Open Access Journal, vol. 12(9), pages 1-1, May.
    13. Sharma, Rohit & Newman, Peter, 2018. "Can land value capture make PPP's competitive in fares? A Mumbai case study," Transport Policy, Elsevier, vol. 64(C), pages 123-131.
    14. Yoshino, Naoyuki & Hendriyetty, Nella & Lakhia, Saloni & Alwarritzi, Widya, 2019. "Innovative Financing for City Infrastructure Investment by Increasing the Rate of Return from Spillover Tax Revenues," ADBI Working Papers 979, Asian Development Bank Institute.
    15. Alexander Bisaro & Mark Bel & Jochen Hinkel & Sien Kok & Laurens M. Bouwer, 2020. "Leveraging public adaptation finance through urban land reclamation: cases from Germany, the Netherlands and the Maldives," Climatic Change, Springer, vol. 160(4), pages 671-689, June.


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