Financing Transit-Oriented Development with Land Values
Despite increasing recognition of transit-oriented development as an effective strategic approach for sustainable urban development, most cities, particularly those in developing countries, do not have the practical know-how and expertise to make transit-oriented development happen. Because these cities are almost always under a severe fiscal constraint, they face great challenges in financing capital-intensive mass transit systems to reverse car-dependent urbanization. Development-based land value capture (LVC) in Hong Kong SAR, China; Tokyo; New York; Washington, DC; and London allows these cities not only to generate funds for transit investment and operation and maintenance but also to promote sustainable urban development. If adapted well to local contexts, such schemes have great potential to become an effective finance and planning apparatus for cities in developing countries.