Financing infrastructure using land value capture
Financing infrastructure using land value capture

Summary/Abstract: The study explores the feasability and benefits of using land value capture mechanisms in the financing of Romanian infrastructure projects. The impact that the PLS Zarea – Laminorului – Straulesti subway expansion had on neighbouring real estate values is estimated by performing a hedonic analysis on 2990 observations of properties surrounding the two new stations in order to create an index that can display the effect proximity to the new line had on prices. With a rate of growth nearly double that of the overall market, it is admissable that the value generated by the newly built infrastructure can be isolated and captured in order to pay for the line expansion.

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