Exploring the Use of Land Value Capture Instruments for Green Resilient Infrastructure Benefits
Building resilient infrastructure is one of the major challenges cities face due to urbanization rates and climate change. Financing these investments is an additional challenge particularly for cities in low and middle-income countries. However, land value capture (LVC) can provide alternative and local finance sources. This study identifies and assesses the multiple benefits of a green resilient infrastructure (GRI) project including flood risk reduction and proposes land value capture instruments for green resilient infrastructure benefits, as a framework for financing public benefits and (partly) recovering the project investment.
The framework is applied on a GRI river project in Santiago de Cali, Colombia: the CAU Cañaveralejo. It combines and tests existing methodologies, researching the possibilities of expanding the concept of LVC and applying it on GRI projects that contribute to flood risk reduction. The research is based on primary and secondary data collection (fieldwork, literature, collection of project documents) to conduct a hedonic pricing modelling combined with GIS and stakeholders’ workshop consultation. The study aims to assess the impact of GRI attributes to the land values of the project’s area. Also, it explores the feasibility of using different LVC instruments in the context of Cali.