Development and implementation of a New Land Value Capture Instrument

• Type: Article in International Conference Proceedings Book
• Date: 2015

Authors

Emília Malcata Rebelo (Author) FEUP

Conference proceedings International

Title: 21st APDR Congress joint with 55th ERSA Congress, ¿World Renaissance: Changing roles for people and places¿

Pages: 1-23

Scientific classification

CORDIS: Social sciences ; Social sciences > Economics > Local public economics ; Social sciences > Geography > Economic geography

FOS: Social sciences > Social and economic geography

Other information

Abstract (EN): Historically the literature (Dick, 1998; Ingram and Hong, 2007; Smolka and Amborski, 2007; Rebelo, 2009, 2012) has asserted the idea of land social function, which means that the increase in land value that results from public decisions should be reassigned to the social welfare. But the territorial management instruments that render this concept operational (surplus value capture instruments) are still underdeveloped around the world (Hagman and Misczynski, 1978; McCluskey and Franzsen, 2005; Smolka and Amborski, 2007; Alexander et al., 2009; Alterman, 2010, 2011;). The current article mainly focuses on the analysis and proposal of a new territorial management instrument aimed at capturing land surplus values that result from planning decisions and from the implementation of territorial plans. It is specifically based on the taxation of licensed built surfaces above the municipal abstract average built surface. It is duly explained, justified from an economic and financial perspective, and applied to the Detailed Plan of Avenida Papa João XXIII, in Fátima (in the Municipality of Ourém, Portugal). In this study average municipal building capacities are computed, as well as the concrete building capacities/m 2 that accrue from urban interventions in the planning area for the different plots, anticipated kinds of uses, and applicable urban parameters. The homologous surplus values assigned by the Detailed Plan are further anticipated, as well as the potential values this new instrument would be able to collect. The research reported in this article is intended to contribute to the economic and financial sustainability of territorial planning and urban development, socially reassigning the surplus values engendered by public decisions, and strengthening municipal finance through the clarification of urban development-related funds´ origins and applications, and the development of understandable, quantifiable and user-friendly decision-support instruments. It is a highly topical subject that fits into the objectives and priorities of Horizon 2020 (contribution of public policies to a smart, sustainable and inclusive growth), and of the new Portuguese Land, Territorial Ordinance and Urbanism Act and complementary legislation that regulates territorial planning, urban development and construction (currently under way). From this research one can conclude that this new territorial management instrument is sustainable from an economic and financial standpoint. Its application is generalizable to other municipalities, and it potentially exerts important impacts in respective financial strengthening. It will further support the consolidation of the objectives of the new Portuguese Land, Territorial Ordinance and Urbanism Act, namely through the integration of territorial policies, a greater effectiveness in plan execution, a reinforced economic and financial sustainability of urban development processes, and the simplification of urban operations, promoting equity and social and territorial cohesion.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 23