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The political economy of transit value capture: The changing business model of the MTRC in Hong Kong

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  • Natacha Aveline-Dubach

    (Géographie-cités, The French National Centre for Scientific Research, University Paris 1—Panthéon Sorbonne, Paris)

  • Guillaume Blandeau

    (French Institute of Urbanism, University Paris-Est Marne-la-Vallée, France)

Abstract

The mechanism of land value capture (LVC) for financing urban transport, which supports the cost of transit infrastructure through the revenues of land and property, has generated a substantial body of research. However, the literature on transit-related LVC has paid little attention to the politics and strategies of value capture. This article intends to shift the focus towards the governance of LVC, based on the case study of the Mass Transit Railway Corporation (MTRC) in Hong Kong. It argues that the evolving balance of power within Hong Kong’s growth coalition has entailed a transformation of the MTRC’s business model, prompting the transit agency to shift from the development of new real estate projects to the management of existing property assets. This work provides empirical evidence of an emerging ‘management-based’ value capture strategy, which is adapted to steady or slow growing urban contexts.

Suggested Citation

  • Natacha Aveline-Dubach & Guillaume Blandeau, 2019. "The political economy of transit value capture: The changing business model of the MTRC in Hong Kong," Urban Studies, Urban Studies Journal Limited, vol. 56(16), pages 3415-3431, December.
    • Handle: RePEc:sae:urbstu:v:56:y:2019:i:16:p:3415-3431
    DOI: 10.1177/0042098018821519
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    References listed on IDEAS

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    5. Nikos Karadimitriou & Sonia Guelton & Athanasios Pagonis & Silvia Sousa, 2022. "Public Value Capture, Climate Change, and the ‘Infrastructure Gap’ in Coastal Development: Examining Evidence from France and Greece," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    6. Zhou, Yueer & Li, Linbo & Zhang, Yahua, 2023. "Location of transit-oriented development stations based on multimodal network equilibrium: Bi-level programming and paradoxes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 174(C).
    7. Du, Yao & Sun, Guibo & Heinen, Eva, 2024. "Does subjective wellbeing modify travel behaviour changes among older people in response to a new metro line?," Journal of Transport Geography, Elsevier, vol. 117(C).
    8. Weihang Gong & Jing (Victor) Li & Mee Kam Ng, 2021. "Deciphering Property Development around High-Speed Railway Stations through Land Value Capture: Case Studies in Shenzhen and Hong Kong," Sustainability, MDPI, vol. 13(22), pages 1-16, November.
    9. Murray, Cameron & Gordon, Josh, 2021. "Land as airspace: How rezoning privatizes public space (and why governments should not give it away for free)," OSF Preprints v89fg, Center for Open Science.
    10. Yung Yau & Tin Choi Cheung, 2021. "Revisiting the Concept of the Property State: Private Landowners and Suburban Development in Hong Kong," American Journal of Economics and Sociology, Wiley Blackwell, vol. 80(2), pages 427-464, March.
    11. Zhang, Fangzhu & Wu, Fulong, 2022. "Financialised urban development: Chinese and (South-)East Asian observations," Land Use Policy, Elsevier, vol. 112(C).

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