Contents

Sustainable Urban Planning Through an Economic and Financial Lens

Author(s): Anne Vernez Moudon1, Rebelo E. M.2
1Deaprtment of Urban Design and planning , University of Washington, Seattle, WA 98105, United States
2CITTA – Research Centre for Territory Transports and Environment, Faculty of Engineering, University of Porto, Porto, Portugal
Anne Vernez Moudon
Deaprtment of Urban Design and planning , University of Washington, Seattle, WA 98105, United States
Rebelo E. M.
CITTA – Research Centre for Territory Transports and Environment, Faculty of Engineering, University of Porto, Porto, Portugal

Abstract

This paper summarizes the assumptions, methods, findings, and conclusions of a study conducted in support of Portugal’s ongoing revision of the Land, Territorial Planning, and Urbanism Act. It emphasizes that municipalities need economically and financially sustainable urban development operations, since planning decisions often increase land values and create surplus gains that should serve the public interest. The study reviews how fiscal land policies strongly shape markets and land use, and proposes a new municipal instrument to capture part of these unearned increments: a 20% levy on the land-value increase generated by plan-assigned building capacity (m²) in specific interventions. A case study from Lagoa (Algarve), within the Urban Development Plan of Planning Unit 11, applies the method by calculating buildable capacity, surplus values, and the corresponding fee to be charged to developers. The proposed mechanism strengthens municipal finances, improves transparency in the sources and uses of public funds, and helps redirect planning-generated gains toward social purposes, with potential for replication across municipalities.

Keywords: Economic and financial sustainability of urban development, Urban development plans, Land surplus values, Land taxation
Copyright © 2024 Anne Vernez Moudon, Rebelo E. M.. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Cite this Article

APA
Moudon, A., E. M., R. (2024). Sustainable Urban Planning Through an Economic and Financial Lens. Journal of Management and Planning Research, 1(1), 45-53. https://doi.org/10.66033/jmpr2024-104
MLA
Moudon, Anne Vernez, and Rebelo E. M.. "Sustainable Urban Planning Through an Economic and Financial Lens." Journal of Management and Planning Research, vol. 1, no. 1, 2024, pp. 45-53.
Chicago
Moudon, Anne Vernez. "Sustainable Urban Planning Through an Economic and Financial Lens." Journal of Management and Planning Research 1, no. 1 (2024): 45-53. https://doi.org/10.66033/jmpr2024-104
Harvard
Moudon, A., E. M., R., 2024. Sustainable Urban Planning Through an Economic and Financial Lens. Journal of Management and Planning Research, 1(1), pp.45-53.
Vancouver
Moudon A, E. M. R. Sustainable Urban Planning Through an Economic and Financial Lens. Journal of Management and Planning Research. 2024;1(1):45-53.