IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v132y2023ics0264837723002922.html
   My bibliography  Save this article

Planning-related land value changes for explaining instruments of compensation and value capture in Switzerland

Author

Listed:
  • Hengstermann, Andreas
  • Götze, Vera

Abstract

As a public policy, planning seeks to achieve politically defined policy objectives such as sustainable spatial development. To effectively attain these objectives, it is essential to consider the impact of planning decisions on land values. A comprehensive understanding of the connection between planning and land values is imperative for making well-informed choices regarding the management of land use and spatial development sustainably and responsibly. While instruments of planning law are intensively debated within the planning community, their implicit effects on land values are rarely considered. This study contributes to the field by demonstrating the crucial connection between planning-induced land value changes and value capture instruments in Switzerland. Our analysis shows significant value changes in the planning process. It connects these to redistributive instruments of the Swiss planning regime, which come into play to compensate for disproportionate planning-induced advantages or disadvantages of landowners. Due to the exceptionally significant change in value while zoning, which is present in Switzerland, there are remarkable redistributive instruments - both in terms of value increase (added value capture) and value decrease (compensation). Our study shows that knowledge of planning-related land value changes can help understand redistributive mechanisms, thereby contributing to best-practice debates.

Suggested Citation

  • Hengstermann, Andreas & Götze, Vera, 2023. "Planning-related land value changes for explaining instruments of compensation and value capture in Switzerland," Land Use Policy, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:lauspo:v:132:y:2023:i:c:s0264837723002922
    DOI: 10.1016/j.landusepol.2023.106826
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837723002922
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2023.106826?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andreas Hendricks & Peter Lacoere & Erwin van der Krabben & Cynthia Oorschot, 2021. "Limits of Negotiable Developer Obligations," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    2. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
    3. Peter Lacoere & Andreas Hengstermann & Mathias Jehling & Thomas Hartmann, 2023. "Compensating Downzoning. A Comparative Analysis of European Compensation Schemes in the Light of Net Land Neutrality," Planning Theory & Practice, Taylor & Francis Journals, vol. 24(2), pages 190-206, March.
    4. Eero Valtonen & Heidi Falkenbach & Kauko Viitanen, 2017. "Development-led planning practices in a plan-led planning system: empirical evidence from Finland," European Planning Studies, Taylor & Francis Journals, vol. 25(6), pages 1053-1075, June.
    5. José Maria Codosero Rodas & José Manuel Naranjo Gómez & Rui Alexandre Castanho & José Cabezas, 2018. "Land Valuation Sustainable Model of Urban Planning Development: A Case Study in Badajoz, Spain," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    6. Elias Oikarinen & Heidi Falkenbach, 2017. "Foreign investors’ influence on the real estate market capitalization rate – evidence from a small open economy," Applied Economics, Taylor & Francis Journals, vol. 49(32), pages 3141-3155, July.
    7. Sina Shahab & Thomas Hartmann & Arend Jonkman, 2021. "Strategies of municipal land policies: housing development in Germany, Belgium, and Netherlands," European Planning Studies, Taylor & Francis Journals, vol. 29(6), pages 1132-1150, June.
    8. Ihlanfeldt, Keith R., 2007. "The effect of land use regulation on housing and land prices," Journal of Urban Economics, Elsevier, vol. 61(3), pages 420-435, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric Fesselmeyer & Haoming Liu & Louisa Poco, 2024. "Within‐development density and housing prices in Singapore," Journal of Regional Science, Wiley Blackwell, vol. 64(2), pages 406-427, March.
    2. Cun, Wukuang & Pesaran, M. Hashem, 2022. "A spatiotemporal equilibrium model of migration and housing interlinkages," Journal of Housing Economics, Elsevier, vol. 57(C).
    3. Lönnroth, Tea & Krigsholm, Pauliina & Falkenbach, Heidi & Oikarinen, Elias, 2024. "Advancing understanding of the linkages between local land policy interventions and the responsiveness of housing supply: Intervention mechanisms in the Finnish context," Land Use Policy, Elsevier, vol. 141(C).
    4. Fesselmeyer, Eric & Liu, Haoming & Poco, Louisa, 2021. "How Much Do Households Dislike Local Density? And Do Developers Fully Consider Their Preferences? Evidence from a Policy Change in Singapore," IZA Discussion Papers 14730, Institute of Labor Economics (IZA).
    5. Codosero Rodas, José Maria & Castanho, Rui Alexandre & Cabezas Fernández, José & Naranjo Gómez, José Manuel, 2020. "Sustainable valuation of land for development. Adding value with urban planning progress. A Spanish case study," Land Use Policy, Elsevier, vol. 92(C).
    6. Ke Wang & Jianjun Zhang & Wenhua Guo & Zhen Liu & Ze Xu, 2023. "A Perception and Judgement of Contributing Factors for Allocating Urban Residential Land: A Systematic Review and Statistical Analysis," Land, MDPI, vol. 12(1), pages 1-22, January.
    7. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," PIER Discussion Papers 203, Puey Ungphakorn Institute for Economic Research.
    8. Andrés Rodríguez-Pose & Michael Storper, 2020. "Housing, urban growth and inequalities: The limits to deregulation and upzoning in reducing economic and spatial inequality," Urban Studies, Urban Studies Journal Limited, vol. 57(2), pages 223-248, February.
    9. Manfred M. Fischer & Florian Huber & Michael Pfarrhofer & Petra Staufer‐Steinnocher, 2021. "The Dynamic Impact of Monetary Policy on Regional Housing Prices in the United States," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1039-1068, December.
    10. Han, Wenjing & Zhang, Xiaoling & Zheng, Xian, 2020. "Land use regulation and urban land value: Evidence from China," Land Use Policy, Elsevier, vol. 92(C).
    11. de Bellefon, Marie-Pierre & Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Gorin, Clément, 2021. "Delineating urban areas using building density," Journal of Urban Economics, Elsevier, vol. 125(C).
    12. Carozzi, Felipe & Roth, Sefi, 2023. "Dirty density: Air quality and the density of American cities," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    13. Eisfeld, Rupert-Klaas & Heinemann, Ann-Kathrin & Just, Tobias & Quitzau, Jörn, . "Büroimmobilien nach Corona - Eine Szenarienanalyse," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 27, August.
    14. Ritashree Chakrabarti & Junfu Zhang, 2015. "Unaffordable housing and local employment growth: Evidence from California municipalities," Urban Studies, Urban Studies Journal Limited, vol. 52(6), pages 1134-1151, May.
    15. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," Papers 2303.17180, arXiv.org.
    16. Monkkonen, Paavo & Quigley, John M., 2008. "The Spatial Consequences of Autarky in Land-Use Regulation: Strategic Interaction or Parallelism?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt69p752cd, Berkeley Program on Housing and Urban Policy.
    17. Dascher, Kristof, 2019. "Function Follows Form," Journal of Housing Economics, Elsevier, vol. 44(C), pages 131-140.
    18. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    19. Liu, Crocker H. & Rosenthal, Stuart S. & Strange, William C., 2020. "Employment density and agglomeration economies in tall buildings," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    20. Chen, Qiuyu & Feng, Ling & Li, Zhiyuan & Lin, Ching-Yi, 2021. "Housing prices and trade surpluses in China: An inter-temporal approach," Journal of International Money and Finance, Elsevier, vol. 110(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:132:y:2023:i:c:s0264837723002922. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.