Urban Infrastructure Investment and Rent-Capture Potentials
In a context of rapid urbanization and energy transition, massive investments will be required to develop efficient public transport networks. Capturing the increase in land value caused by transport infrastructure (for example, through a bettermen...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/10/20300168/urban-infrastructure-investment-rent-capture-potentials http://hdl.handle.net/10986/20513 |
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okr-10986-205132021-04-23T14:03:56Z Urban Infrastructure Investment and Rent-Capture Potentials Viguie, V. Hallegatte, S. ACCESSIBILITY AGRICULTURE AIR AIR POLLUTION AVERAGE TRIP LENGTH BETTERMENT LEVIES BETTERMENT TAX BUS CALIBRATION CAR CAR TRANSPORT CAR TRAVEL CLIMATE CHANGE COMMERCIAL REAL ESTATE COMMUTERS COMMUTING COMPARATIVE ANALYSIS CONGESTION CONSTRUCTION CONSTRUCTION COSTS COST OF TRANSPORT COST OF TRANSPORTATION CROSSING DAILY TRAFFIC DEVELOPERS DEVELOPMENT POLICY DISCOUNT RATE DRIVING ECONOMIC THEORY ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS FARES FINANCE INFRASTRUCTURE FINANCING TRANSIT SYSTEMS FRAMEWORK FREEWAY FUEL FUEL COSTS GASOLINE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH-SPEED RAIL HIGHWAY HOUSEHOLDS HOUSES HOUSING HOUSING CONSTRUCTION HOUSING PRICES IMPACT OF TRANSPORT INCOME INDIFFERENCE CURVES INFRASTRUCTURE COSTS INFRASTRUCTURE INVESTMENT INTEREST RATE INTEREST RATES JOURNEY JOURNEY TIME JOURNEYS LAND PRICES LAND USE LANDOWNERS LIGHT RAIL LIGHT RAIL SYSTEM In a context of rapid urbanization and energy transition, massive investments will be required to develop efficient public transport networks. Capturing the increase in land value caused by transport infrastructure (for example, through a betterment tax) appears a promising way to finance public transport. However, it is no trivial task, as it is difficult to anticipate the rent creation. This paper uses a simple city model based on urban economic theory to compute the rent created by improvements in public transport infrastructure in Paris, France. To apply in places where models or data are not available, a reduced form of the model is shown to provide acceptable approximations of the rent creation. Simulations confirm that land value capture can finance a significant part of transport investments. The simulations also show that value capture potentials are influenced by what happens in the entire agglomeration. Simultaneous infrastructure investments in different parts of the city play a significant role, as they change overall accessibility patterns. Evolutions taking place in other cities also have a comparable influence. Non-local effects can change the total potential for land value capture and multiply this potential by as much as a factor of two. 2014-11-12T21:17:07Z 2014-11-12T21:17:07Z 2014-10 http://documents.worldbank.org/curated/en/2014/10/20300168/urban-infrastructure-investment-rent-capture-potentials http://hdl.handle.net/10986/20513 English en_US Policy Research Working Paper;No. 7067 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia France |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESSIBILITY AGRICULTURE AIR AIR POLLUTION AVERAGE TRIP LENGTH BETTERMENT LEVIES BETTERMENT TAX BUS CALIBRATION CAR CAR TRANSPORT CAR TRAVEL CLIMATE CHANGE COMMERCIAL REAL ESTATE COMMUTERS COMMUTING COMPARATIVE ANALYSIS CONGESTION CONSTRUCTION CONSTRUCTION COSTS COST OF TRANSPORT COST OF TRANSPORTATION CROSSING DAILY TRAFFIC DEVELOPERS DEVELOPMENT POLICY DISCOUNT RATE DRIVING ECONOMIC THEORY ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS FARES FINANCE INFRASTRUCTURE FINANCING TRANSIT SYSTEMS FRAMEWORK FREEWAY FUEL FUEL COSTS GASOLINE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH-SPEED RAIL HIGHWAY HOUSEHOLDS HOUSES HOUSING HOUSING CONSTRUCTION HOUSING PRICES IMPACT OF TRANSPORT INCOME INDIFFERENCE CURVES INFRASTRUCTURE COSTS INFRASTRUCTURE INVESTMENT INTEREST RATE INTEREST RATES JOURNEY JOURNEY TIME JOURNEYS LAND PRICES LAND USE LANDOWNERS LIGHT RAIL LIGHT RAIL SYSTEM |
| spellingShingle |
ACCESSIBILITY AGRICULTURE AIR AIR POLLUTION AVERAGE TRIP LENGTH BETTERMENT LEVIES BETTERMENT TAX BUS CALIBRATION CAR CAR TRANSPORT CAR TRAVEL CLIMATE CHANGE COMMERCIAL REAL ESTATE COMMUTERS COMMUTING COMPARATIVE ANALYSIS CONGESTION CONSTRUCTION CONSTRUCTION COSTS COST OF TRANSPORT COST OF TRANSPORTATION CROSSING DAILY TRAFFIC DEVELOPERS DEVELOPMENT POLICY DISCOUNT RATE DRIVING ECONOMIC THEORY ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS FARES FINANCE INFRASTRUCTURE FINANCING TRANSIT SYSTEMS FRAMEWORK FREEWAY FUEL FUEL COSTS GASOLINE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH-SPEED RAIL HIGHWAY HOUSEHOLDS HOUSES HOUSING HOUSING CONSTRUCTION HOUSING PRICES IMPACT OF TRANSPORT INCOME INDIFFERENCE CURVES INFRASTRUCTURE COSTS INFRASTRUCTURE INVESTMENT INTEREST RATE INTEREST RATES JOURNEY JOURNEY TIME JOURNEYS LAND PRICES LAND USE LANDOWNERS LIGHT RAIL LIGHT RAIL SYSTEM Viguie, V. Hallegatte, S. Urban Infrastructure Investment and Rent-Capture Potentials |
| geographic_facet |
Europe and Central Asia France |
| relation |
Policy Research Working Paper;No. 7067 |
| description |
In a context of rapid urbanization and
energy transition, massive investments will be required to
develop efficient public transport networks. Capturing the
increase in land value caused by transport infrastructure
(for example, through a betterment tax) appears a promising
way to finance public transport. However, it is no trivial
task, as it is difficult to anticipate the rent creation.
This paper uses a simple city model based on urban economic
theory to compute the rent created by improvements in public
transport infrastructure in Paris, France. To apply in
places where models or data are not available, a reduced
form of the model is shown to provide acceptable
approximations of the rent creation. Simulations confirm
that land value capture can finance a significant part of
transport investments. The simulations also show that value
capture potentials are influenced by what happens in the
entire agglomeration. Simultaneous infrastructure
investments in different parts of the city play a
significant role, as they change overall accessibility
patterns. Evolutions taking place in other cities also have
a comparable influence. Non-local effects can change the
total potential for land value capture and multiply this
potential by as much as a factor of two. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Viguie, V. Hallegatte, S. |
| author_facet |
Viguie, V. Hallegatte, S. |
| author_sort |
Viguie, V. |
| title |
Urban Infrastructure Investment and Rent-Capture Potentials |
| title_short |
Urban Infrastructure Investment and Rent-Capture Potentials |
| title_full |
Urban Infrastructure Investment and Rent-Capture Potentials |
| title_fullStr |
Urban Infrastructure Investment and Rent-Capture Potentials |
| title_full_unstemmed |
Urban Infrastructure Investment and Rent-Capture Potentials |
| title_sort |
urban infrastructure investment and rent-capture potentials |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/10/20300168/urban-infrastructure-investment-rent-capture-potentials http://hdl.handle.net/10986/20513 |
| _version_ |
1764445567516147712 |