On value capture finance
The cost-effectiveness of transportation infrastructure investment depends on recovering benefits to defray costs.
Some countries with advanced urban transportation systems realize that the benefits of infrastructure investment go to landowners, and cannot benefit the general population or even users except to the extent that the additional land value the infrastructure creates is recovered to pay for it, rather than being given away to landowners.
In Hong Kong, much of the cost of building new transportation infrastructure is now met by the transit authority participating in densification of land use near transit stations, recovering some of the additional land value the stations create.
Translink, the Metro Vancouver traffic and transportation authority, has recently adopted a similar system, after all other funding methods were explored and found unacceptable.
Roy Langston, email@example.com
Contribution by the author to the world wide collaborative project “Messages for America: World-wide experience, ideas, counsel, proposals and good wishes for the incoming Obama transportation team”. See www.messages.newmobility.org for latest version of this report of the New Mobility Agenda.Print this article