Publication: Unlocking Land Values to Finance Urban Infrastructure
Loading...
Other Files
1,801 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.”
Digital Object Identifier
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 Understanding the Cost of Achieving the Sustainable Development Goals(World Bank, Washington, DC, 2020-02)This paper presents a review of studies that estimate the cost of achieving the Sustainable Development Goals. Although the Sustainable Development Goals provide useful benchmarks for fiscal authorities and donors, typical cross-country costing exercises can be misleading, for a variety of reasons: double counting, sensitivity to underlying assumptions, downplaying the critical role of policy and institutions in advancing toward the goals, failure to discount costs or consider operation and maintenance costs in a consistent manner, and overlooking the tendency for different types of Sustainable Development Goal–related spending to have distinct effects. Recent costing studies by the World Bank Group have been developed to minimize the drawbacks of earlier studies. The paper also briefly reviews how the World Bank Group engages with stakeholders on the Sustainable Development Goals agenda.Publication Uncharted Waters(World Bank, Washington, DC, 2017-10-24)The 21st century will witness the collision of two powerful forces – burgeoning population growth, together with a changing climate. With population growth, water scarcity will proliferate to new areas across the globe. And with climate change, rainfall will become more fickle, with longer and deeper periods of droughts and deluges. This report presents new evidence to advance understanding on how rainfall shocks coupled with water scarcity, impacts farms, firms, and families. On farms, the largest consumers of water in the world, impacts are channeled from declining yields to changing landscapes. In cities, water extremes especially when combined with unreliable infrastructure can stall firm production, sales, and revenue. At the center of this are families, who feel the impacts of this uncertainty on their incomes, jobs, and long-term health and welfare. Although a rainfall shock may be fleeting, its consequences can become permanent and shape the destiny of those who experience it. Pursuing business as usual will lead many countries down a “parched path” where droughts shape destinies. Avoiding this misery in slow motion will call for fundamental changes to water policy around the globe. Building resilience to rainfall variability will require using different policy instruments to address the multifaceted nature of water. A key message of this report is that water has multiple economic attributes, each of which entail distinct policy responses. If water is not managed more prudently—from source, to tap, and back to source—the crises observed today will become the catastrophes of tomorrow.Publication Towards Higher Education Excellence in Central Asia(Washington, DC: World Bank, 2023-10-19)The purpose of this Report is to provide recommendations for addressing common challenges while promoting academic and research excellence in higher education in Central Asia through regional cooperation between Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. Regional integration of higher education systems in Central Asia has the potential to drive positive changes in the sector and to generate significant economic and social benefits overall. By fostering cooperation, knowledge sharing and resource pooling among universities, the quality of higher education, research and innovation in Central Asia can be enhanced. This can be achieved through the establishment of centers of excellence, world-class universities and regional hubs that can attract highly qualified students and workers. Moreover, the regional integration of higher education systems offers an effective platform for sharing best practices and receiving support from regional leaders. The harmonization of academic standards facilitates the recognition of qualifications across countries, contributing to the mobility of students, faculty and workers, enabling them to participate in regional labor markets. This, in turn, stimulates the development of industries that are important to the economies of Central Asian countries. Finally, greater cooperation in higher education can play a crucial role in establishing a dynamic knowledge-based economy and enable Central Asia to move away from extractive industries – to ultimately achieve competitiveness on the global level.Publication Analyzing Food Price Trends in the Context of Engel’s Law and the Prebisch-Singer Hypothesis(World Bank, Washington, DC, 2015-09)Income growth in emerging economies has often been cited as a key driver of the past decade’s com-modity price boom—the longest and broadest boom since World War II. This paper shows that income has a negative and highly significant effect on real food commodity prices, a finding that is consistent with Engel’s Law and Kindleberger’s thesis, the predecessors of the Prebisch-Singer hypothe-sis. The paper also shows that, in the long run, income influences real food prices mainly through the manufacturing price channel (the deflator), hence weakening the view that income growth exerts strong upward pressure on food prices. Other (short-term) drivers of food prices include energy costs, inventories, and monetary conditions.Publication Maldives Development Update, October 2023(Washington, DC: World Bank, 2023-09-29)The economy has maintained its strong growth momentum, with the expansion in tourism, and poverty is expected to fall further in 2023. The number of tourist arrivals grew by 14 percent (y-o-y) to 1.25 million by early September 2023, reaching a historic high compared to similar periods in other years (Figure ES.1). Despite the Russian invasion of Ukraine, arrivals from Russia remained strong. An earlier-than-expected reopening of the Chinese market, on January 18, has compensated for lower arrivals from India and Gulf countries, while arrivals from Europe continued to increase. As a result, the Maldivian economy grew by 5.5 percent (y-o-y) in the first quarter of 2023. Poverty levels also fell with the strong economic rebound, to an estimated level of 1.5 percent of the population. High inequality in the country, especially in the outer atolls, remains a real concern.