Developer or land owner contributions? Land value capture, creation, conservation and compensation

This article examines developer contributions as a planning policy instrument for capturing land value for communities. Drawing on existing literature, it synthesises theory and develops analytical frameworks to classify land value capture mechanisms, ranging from incidental to explicitly designed. Developer contributions are categorised by their effects on land values and provision of public or merit goods, as enabling, commercial, compensatory, supplementary, redistributive or subsidised. The analysis highlights challenges in determining who ultimately bears the cost – site owners, nearby landowners, developers or end users, whether that is through unrealised economic rent, subsidies or combinations thereof – making assessment of value capture complex.