Financing Urban Transport Through Value Capture

Abstract

The European Union in the Green Book on Urban Transport notices that in order to foster urban and suburban sustainable mobility among citizens, they should be provided with transport services with quality that is efficient and reliable. However, to provide good services, it is essential to develop and adequately maintain and operate the necessary infrastructure facilities. The report intends to establish different strategies for sustainable urban transport, giving special emphasis in the need to rely on important economical resources to invest in transport infrastructure. Those strategies take shape in a group of measures related to budgets, regulations and different financial instruments such as specific local taxes, in order to accomplish the goals.

On the other hand, urban economics states that if a property has the opportunity to access to better benefits than the others, the demand for it will be higher, increasing its value.

A new station generates a benefit around it, which people living or working close to it take special advantage from. This benefit is noticed in the real estate market increase, especially in the areas close to the stations. The above is because people prefer to live close to a public transport station that will facilitate their commuting trips and lower their transportation costs. Likewise, retail stores and offices are benefited in its location by the number of people that uses this means of transport and by the facility that means of transport implies to the employees to commute.