Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina

The objective of this study is to explore the feasibility of widening public funding of urban infrastructure investment using land value capture (LVC) tools in the Metropolitan Area of Buenos Aires (MABA), Argentina. Over the last 15 years, this region has experienced a highly disorganized urban gro...

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Autores principales: Goytia, Cynthia, Cristini, Marcela
Formato: Documento de trabajo
Lenguaje:Inglés
Publicado: Lincoln Institute of Land Policy 2025
Materias:
Infraestructura urbana
Urban Infraestructure
Desarrollo urbano
Urban Development
Planificación urbana
Urban Planning
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/13414
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-13414
record_format dspace
spelling I57-R163-20.500.13098-134142025-06-03T05:02:59Z Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina Goytia, Cynthia Cristini, Marcela Infraestructura urbana Urban Infraestructure Desarrollo urbano Urban Development Planificación urbana Urban Planning The objective of this study is to explore the feasibility of widening public funding of urban infrastructure investment using land value capture (LVC) tools in the Metropolitan Area of Buenos Aires (MABA), Argentina. Over the last 15 years, this region has experienced a highly disorganized urban growth accompanied by low investment in urban infrastructure. The study reviews the nature and experience of LVC tools, particularly in Latin-American countries, with a special emphasis in the cases where income distribution is very unequal. Based on a detailed analysis of the situation in MABA (income distribution, urban growth, land price trends), a simulation model of a typical municipality is developed to represent alternative schemes of betterment contributions and urban investments. Lessons from the international practice and the results of the simulation model are combined to draw recommendations for the MABA case. The study concludes that betterment contributions are well-adapted instruments for financing infrastructure projects that could benefit a wide range of households in specific areas of the MABA. This instrument has the advantage of being already in use at several municipalities of the metropolitan region. The analysis also indicates that under the current regional socio-economic scenario, the balance between the rate of the betterment contribution and the impact of the improvement (measured through land valorization) is a key feature to gain acceptance in the urban planning endeavor. The results suggest that the kind of investment (affecting the quality and/or the quantity of land) may be important in terms of welfare and income distribution results. Finally, policy recommendations include the need to consider the distribution of the levy burden considering current income levels instead of connecting it to the increase in the value of the land plot. One possibility is to spread the cost of the levy collection over a longer period using the financial market to cover for the gap. Another option is to associate the implementation of betterment contributions to the urban plan, allowing for the anticipated collection of the revenue earmarked to the development of the projects. Lincoln Institute of Land Policy 2025-06-02T19:58:28Z 2020-08 info:eu-repo/semantics/workingPaper https://repositorio.utdt.edu/handle/20.500.13098/13414 eng Lincoln Institute of Land Policy - Working Papers Argentina Ciudad Autónoma de Buenos Aires info:eu-repo/semantics/restrictedAccess http://rightsstatements.org/page/InC/1.0/?language=es 45 p. application/pdf application/pdf
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Infraestructura urbana
Urban Infraestructure
Desarrollo urbano
Urban Development
Planificación urbana
Urban Planning
spellingShingle Infraestructura urbana
Urban Infraestructure
Desarrollo urbano
Urban Development
Planificación urbana
Urban Planning
Goytia, Cynthia
Cristini, Marcela
Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
topic_facet Infraestructura urbana
Urban Infraestructure
Desarrollo urbano
Urban Development
Planificación urbana
Urban Planning
description The objective of this study is to explore the feasibility of widening public funding of urban infrastructure investment using land value capture (LVC) tools in the Metropolitan Area of Buenos Aires (MABA), Argentina. Over the last 15 years, this region has experienced a highly disorganized urban growth accompanied by low investment in urban infrastructure. The study reviews the nature and experience of LVC tools, particularly in Latin-American countries, with a special emphasis in the cases where income distribution is very unequal. Based on a detailed analysis of the situation in MABA (income distribution, urban growth, land price trends), a simulation model of a typical municipality is developed to represent alternative schemes of betterment contributions and urban investments. Lessons from the international practice and the results of the simulation model are combined to draw recommendations for the MABA case. The study concludes that betterment contributions are well-adapted instruments for financing infrastructure projects that could benefit a wide range of households in specific areas of the MABA. This instrument has the advantage of being already in use at several municipalities of the metropolitan region. The analysis also indicates that under the current regional socio-economic scenario, the balance between the rate of the betterment contribution and the impact of the improvement (measured through land valorization) is a key feature to gain acceptance in the urban planning endeavor. The results suggest that the kind of investment (affecting the quality and/or the quantity of land) may be important in terms of welfare and income distribution results. Finally, policy recommendations include the need to consider the distribution of the levy burden considering current income levels instead of connecting it to the increase in the value of the land plot. One possibility is to spread the cost of the levy collection over a longer period using the financial market to cover for the gap. Another option is to associate the implementation of betterment contributions to the urban plan, allowing for the anticipated collection of the revenue earmarked to the development of the projects.
format Documento de trabajo
author Goytia, Cynthia
Cristini, Marcela
author_facet Goytia, Cynthia
Cristini, Marcela
author_sort Goytia, Cynthia
title Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
title_short Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
title_full Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
title_fullStr Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
title_full_unstemmed Infrastructure Investment in a Messy Urban Growth Scenario: The Role of Land Value Capture Instruments in Argentina
title_sort infrastructure investment in a messy urban growth scenario: the role of land value capture instruments in argentina
publisher Lincoln Institute of Land Policy
publishDate 2025
url https://repositorio.utdt.edu/handle/20.500.13098/13414
work_keys_str_mv AT goytiacynthia infrastructureinvestmentinamessyurbangrowthscenariotheroleoflandvaluecaptureinstrumentsinargentina
AT cristinimarcela infrastructureinvestmentinamessyurbangrowthscenariotheroleoflandvaluecaptureinstrumentsinargentina
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