Publication: Unlocking Land Values to Finance Urban Infrastructure
Loading...
Other Files
1,785 downloads
Published
2008
ISSN
Date
2012-05-29
Author(s)
Editor(s)
Abstract
Urban growth throughout the developing world has created a challenge for financing infrastructure. Investment in infrastructure is needed to provide basic services for newly developed parts of urban areas. It is needed to meet the demand for a safer and more reliable water supply, higher standards for the removal and treatment of wastewater and solid waste, and the transportation requirements of a population whose expectations of mobility rise with household incomes. Infrastructure investment also is essential to the economic productivity of cities. This book examines an important additional option for local infrastructure finance: capturing land value gains for public investment. Land values are highly sensitive to infrastructure investment and urban economic growth. Public works projects such as road construction, water supply, and mass transit investment produce benefits that are immediately capitalized into surrounding land values. Many cities in developing countries have underused public lands that would be more valuable if sold and converted into infrastructure assets. Tapping land values was a large part of the investment strategy of Western countries in financing urban infrastructure during the 19th century, when cities were growing most rapidly. As part of the overall financing mix, using land assets for infrastructure finance has several advantages. Most instruments of this type generate revenues upfront, making it easier to finance lumpy investment projects. Mobilizing finance from land transactions also generates price signals that increase the efficiency of urban land markets and help rationalize the urban development pattern.
Link to Data Set
Citation
“Peterson, George E.. 2008. Unlocking Land Values to Finance Urban Infrastructure. Trends and Policy Options; No. 7. © World Bank. http://hdl.handle.net/10986/6552 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication The Integrated Urban Development Strategy for Ploiesti Growth Pole 2014-2020(World Bank, Washington, DC, 2016)In 2012, the World Bank signed five agreements with MRDPA for advisory services, out of which one relates to the growth poles policy and to its improvement for the programming period 2014-2020. This agreement has three components: 1) an analysis of the growth poles policy, 2) energy efficiency studies for each growth pole; and 3) a review of the Integrated Development Plans prepared by the growth poles for the period 2007-2013. In this context, South Muntenia Regional Development Agency, through the coordinator of Ploiești Growth Pole, requested the World Bank, under a project funded by ERDF through the Technical Assistance Operational Program 2007-2013, to support the Growth Pole in implementing the recommendations stemming from the previous analysis with: 1) updating the Integrated Development Plan for 2014-2020; and 2) proposing an improved institutional framework for coordinating the planning, implementation and monitoring of projects under this plan. The current document of the Integrated Development Plan belonging to Ploiești Growth Pole was developed during the period 2008-2009 and approved and submitted to South Muntenia RDA in April 2010. It contains a total number of 93 projects with a total value of RON 5,136,143,583.91, out of which 762,515,322.81 are EU funds, and the remainder comes from the national budget and the beneficiaries’ own contribution. In the process of updating the plan, the implementation status of these projects will be studied further, while attention will be also given to the unimplemented projects in order to see whether they will be included in the documentation, depending on their response to the new development conditions of the growth pole.Publication Handshake, No. 4 (January 2012)(International Finance Corporation, Washington, DC, 2012-01)This issue includes the following headings: mass rapid transit: a tool for urban expansion; financing: beyond sovereign guarantees; and low-income housing: lessons from Latin America.Publication Handshake, No. 11 (October 2013)(International Finance Corporation, Washington, DC, 2013-10)This issue includes the following headings: donors: aid versus trade; investment: seeking strong partners; power: hydro heats up; water: sanitation solutions; and first person: African Development Bank PresidentPublication Handshake, No. 7 (October 2012)(International Finance Corporation, Washington, DC, 2012-10)This issue includes the following headings: road: Brazils competitive drive; rail: speeding toward tomorrow; logistics: MIT expert on why logistics clusters matter; and interview: UPSs sustainable strategies.Publication Handshake, No. 15 (October 2014)(Washington, DC, 2014-10)This issue includes the following headings: finding the right broadband public-private partnership (PPP): whats key for emerging economies?; reform has its rewards: telecom takes off in Myanmar; e-gov excellence: models from Colombia, Ghana, India, and Portugal; know what you know: creating a government technology strategy; and closing the gap: Facebook and intel connect the unconnected.
Users also downloaded
Showing related downloaded files
Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.