Authors: Mi Shih*, Rutgers University, Ying-Hui Chiang , Department of Land Economics, National Chengchi University, Taiwan, Hsiu-Yin Ding , Department of Land Economics, National Chengchi University, Taiwan
Topics: Urban and Regional Planning, Urban Geography
Keywords: Value Capture, Value Creation, Zonal Expropriation, Public-Private Dynamics, Taiwan
Session Type: Paper
Presentation File: No File Uploaded
This article focuses on zonal expropriation and examines the relationship between value creation, the real estate market, and public value capture. Building on Central North in Taiwan, the analysis identifies two mechanisms of finance. The first is ex ante by law. The legal requirements of full compensation and the minimum 40% allotment for compensation land dictate that the future value is at least 2.5 times higher. The second is value creation by agents, those government officials and appraisers crafting the project’s finance analysis. The lesson learned is that value capture is largely predicated on a speculative real estate market. This is not to say that zonal expropriation does not or cannot capture public benefits; it is important to emphasize, however, that what value is captured and for whom are highly context contingent. The question of what is public in value capture should have a central place in planning practice.
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