Sustainable Futures (Dec 2024)
What European practices can offer for the sustain of Türkiye's land value capture instruments: Addressing potential implications with PEST analysis
Abstract
Ensuring the sustainability of cities and communities is closely linked to sharing the financial burden and rent among stakeholders arising from development. Administrations undertake Land Value Capture (LVC) to finance infrastructure investments and implement urbanization policies by recapturing a portion (or all) of the increase resulting from development. Through recurring and non-recurring instruments developed for this purpose, support is provided to the urbanization burden in exchange for the value added by residents or developers. In Türkiye, the efficiency of existing LVC instruments in capturing added value is subject to debate. This study analyses political, economic, socio-cultural, and technological (PEST) factors to evaluate implications for improving Türkiye's LVC instruments from the perspective of their counterparts in European countries. The selection of the countries examined was determined by the frequency of use of the relevant LVC instrument compared to other instruments within the country. The study results suggest that restructuring Türkiye's LVC instruments based on the examined practices would reduce the financial burden of infrastructure and service facilities on local administrations while potentially inducing changes in resident behaviour. Additionally, it indicates the need for Turkish LVC instruments to be regulated regarding property valuation and technological infrastructure development. The consistency of the potential outcomes of the practices considered in light of the results and their alignment with sustainable development policies are discussed.
