Over the past 40 years, the number of people living in cities has doubled worldwide. By 2050, it will expand by 1.5 billion, reaching 5 billion. Cities must address inescapable global warming, minimize other environmental footprints, and become climate neutral in order to meet global environmental concerns. To accomplish these goals, cities will need to offer inclusive public services to all of its residents.
These megatrends necessitate distinct and greater upfront investments in green open space, renewable energy, sustainable public transportation, and water resources, among other things. In order to make jobs and facilities in cities accessible with little energy input and zero emissions, they also call for smarter urban design.
If properly used, land value capture can help address these issues. LVC refers to a group of legislative tools that enable governments to seize the increases in land value brought on by public initiatives.
Changes in land use regulation often trigger significant increases in the value of land. So does the provision of public services by governments.
Cities may become much more livable and sustainable if even a portion of this increased value is made accessible for public investment. This is due to the fact that land is one of the most valuable types of capital, accounting for almost 40% of the total capital stock in the OECD as a whole, or $152 trillion.
