Quantifying the Indirect Benefits of Transport Infrastructures and Value Capture Ways in Transportation

Urban transportation is closely related to land use. The changes of transportation cost and accessibility have a direct impact on land use and land prices. Land exploitation and land use play a role of redistributing traffic flow in the urban districts. Real property values are regarded as a sole comprehensive index representing all the benefits generated by transport investment. We have applied the theory of time value on transportation to land price model to evaluate the increased value of real estate resulting from improved accessibility. Agency responsible for the development of urban transport infrastructure can capture part of the financial benefit gained by real estate development through a variety of value capture. This enables us to transfer indirect benefit of transport infrastructure construction to transport enterprise and achieve a benign cycle between urban transport investment and land exploitation.