Please use this identifier to cite or link to this item:
Author(s): Emília Malcata Rebelo
Title: Development and implementation of a New Land Value Capture Instrument
Issue Date: 2015
Abstract: Historically the literature (Dick, 1998; Ingram and Hong, 2007; Smolka and Amborski, 2007;Rebelo, 2009, 2012) has asserted the idea of land social function, which means that the increasein land value that results from public decisions should be reassigned to the social welfare. But theterritorial management instruments that render this concept operational (surplus value captureinstruments) are still underdeveloped around the world (Hagman and Misczynski, 1978;McCluskey and Franzsen, 2005; Smolka and Amborski, 2007; Alexander et al., 2009; Alterman,2010, 2011;).The current article mainly focuses on the analysis and proposal of a new territorial managementinstrument aimed at capturing land surplus values that result from planning decisions and fromthe implementation of territorial plans. It is specifically based on the taxation of licensed builtsurfaces above the municipal abstract average built surface. It is duly explained, justified from aneconomic and financial perspective, and applied to the Detailed Plan of Avenida Papa JoãoXXIII, in Fátima (in the Municipality of Ourém, Portugal). In this study average municipalbuilding capacities are computed, as well as the concrete building capacities/m2that accrue fromurban interventions in the planning area for the different plots, anticipated kinds of uses, andapplicable urban parameters. The homologous surplus values assigned by the Detailed Plan arefurther anticipated, as well as the potential values this new instrument would be able to collect.The research reported in this article is intended to contribute to the economic and financialsustainability of territorial planning and urban development, socially reassigning the surplusvalues engendered by public decisions, and strengthening municipal finance through theclarification of urban development-related fundsŽ origins and applications, and the developmentof understandable, quantifiable and user-friendly decision-support instruments.It is a highly topical subject that fits into the objectives and priorities of Horizon 2020(contribution of public policies to a smart, sustainable and inclusive growth), and of the newPortuguese Land, Territorial Ordinance and Urbanism Act and complementary legislation thatregulates territorial planning, urban development and construction (currently under way).From this research one can conclude that this new territorial management instrument issustainable from an economic and financial standpoint. Its application is generalizable to othermunicipalities, and it potentially exerts important impacts in respective financial strengthening. Itwill further support the consolidation of the objectives of the new Portuguese Land, TerritorialOrdinance and Urbanism Act, namely through the integration of territorial policies, a greatereffectiveness in plan execution, a reinforced economic and financial sustainability of urbandevelopment processes, and the simplification of urban operations, promoting equity and socialand territorial cohesion.
Subject: Ciências Sociais, Economia pública local, Geografia económica, Geografia económica e social
Social sciences, Local public economics, Economic geography, Social and economic geography
Scientific areas: Ciências sociais::Geografia económica e social
Social sciences::Social and economic geography
Source: 21st APDR Congress joint with 55th ERSA Congress, World Renaissance: Changing roles for people and places
Document Type: Artigo em Livro de Atas de Conferência Internacional
Rights: openAccess
Appears in Collections:FEUP - Artigo em Livro de Atas de Conferência Internacional

Files in This Item:
File Description SizeFormat 
151330.pdf2.42 MBAdobe PDFThumbnail

This item is licensed under a Creative Commons License Creative Commons