Transit-oriented development and land value capture in China: a public–private partnership perspective

Abstract

Transit-oriented development (TOD) has become a central strategy of local governments to reshape land-use planning and spatial structure. However, cooperations on effectively implementing TOD between state-owned enterprise and private sector still lack little attention. This case study of TOD in Ningbo, China, illustrates planning practice by an innovative institutional hybrid: a public–private partnership (PPP). Key findings include: 1) the PPP-driven TOD was of mutual benefit to both private developers and municipal government; 2) land value capture (LVC) provided significant municipal revenue by leveraging the synergies and exploiting the capacities for innovation; 3) four factors are essential for an equitable distribution of LVC: realistic expectations of land value appreciation, the potential for market volatility, risk management policy, and cost-benefit sharing formulas; and 4) distribution of LVC under the PPP has some deficiencies. These findings contribute to best practice in TOD planning and enhanced cooperation between PPP stakeholders.