From Land Value Capture to Value Sharing: evidence from the new town construction in China

Authors: Yu Zhang*, School of Urban Planning and Design, Peking University, De Tong, School of Urban Planning and Design, Peking University, Ian MacLachlan, School of Urban Planning and Design, Peking University
Topics: Social Geography, Urban and Regional Planning, China
Keywords: value capture, value sharing, partnership, joint development, land expropriation, new town construction, China
Session Type: Paper
Day: 4/5/2019
Start / End Time: 3:05 PM / 4:45 PM
Room: Washington 4, Marriott, Exhibition Level
Presentation File: No File Uploaded

Land value increment allocation was long debated in land economics. Along with the fast urbanization process, value capture from public sector was not only a key resource of public finance, but also the justified payback of public-led development and investments. Unlike the complete and systematic instruments developed in western world, China endured a long period of unsustainable land finance in promoting urbanization. To deal with severe problems like landless farmers settlement, land expropriation conflicts and financial dependence on land leasing emerging during rural to urban conversion and new town construction in China, we proposed a new policy mechanism in this study. Inspired by the case of Zhaoqing, we analyzed the two-stage land stock system developed between governments and village collectives, aiming to figure out the framework of value sharing, which we proposed as an appropriate instrument for the allocation of land value increment during urbanization in less developed area. A bottom-up and equitable value sharing is recommended to substitute the previous top-down inefficient value capture instruments like government-led land expropriation and land leasing. The formation of this value sharing system is a new application of joint development (JD) in China, which provides more insights into developing a more integrated planning process for both scholars and practitioners.

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