Land Value Capture for Transportation Infrastructure Financing: A Systematic Literature Review of Transit-Oriented Development and Land-Value Creation
DOI:
https://doi.org/10.65310/ekxztg48Keywords:
Infrastructure Financing, Land Value Capture, Land-Value Creation, Transit-Oriented Development, Transportation Investment.Abstract
Land Value Capture (LVC) has emerged as a complementary mechanism for financing transportation infrastructure, particularly within Transit-Oriented Development (TOD) areas where transportation investment can enhance accessibility and influence land and property values. However, value creation does not automatically translate into public revenue because effective capture depends on appropriate instruments, regulatory frameworks, institutional capacity, governance, and land-value assessment. This study aims to review literature examining the relationship between transportation investment, land-value creation, LVC, TOD, and transportation infrastructure financing. A Systematic Literature Review (SLR) was conducted using the PRISMA 2020 framework, with literature identified through Scopus, ScienceDirect, Google Scholar, and Garuda. From 214 identified records, 62 duplicates were removed, 152 records were screened, 32 reports were assessed for eligibility, and 10 studies were included in the synthesis. The findings indicate that transportation investment and TOD contribute to land and property value creation through improved accessibility and development, although the magnitude and direction of value changes vary across contexts and property types. The review identifies Betterment Levy, developer exactions, development rights, land-value-based financing, and joint or property development as LVC mechanisms. Overall, LVC has potential to complement transportation infrastructure financing, but implementation requires context-specific instruments and integrated transportation, land-use, fiscal, regulatory, and institutional frameworks.
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