Presentation of OECD work on the governance of land use made at the launch of the sythesis report, by Tamara Krawchenko and Abel Schumann, Regional Development Policy Division, OECD.

1. THE GOVERNANCE
OF LAND USE
Tamara Krawchenko
Abel Schumann
Regional Development Policy Division, OECD

2. Today’s launch: two associated reports
• The Governance of Land Use: Policy
Analysis and Recommendations
– Analysis of land use policies (including
planning and tax policies) and trends
– Recommendations on how to make land
use policies more flexible and more
effective
• Land-Use Planning Systems in the
OECD: Country Fact Sheets
– Descriptive overview of land-use
planning systems in 32 OECD countries
– Key statistics on land use

3. LAND USE TRENDS IN THE
OECD

4. 0
5000
10000
15000
20000
25000
30000
35000
Property
(buildings,
infrastructure)
Land Machinery &
Equipment
Inventories Other natural
resources
Intellectual
property
Other non
financial
assests
Cultivated
biological
resources
Land and property are by far the most
important forms of capital
Disaggregated capital stock (six-country sample)U$ billion PPP
Note: Data covers Australia, Canada, Czech Republic, France, Japan and Korea.
Source: OECD National Accounts Table 9B

5. The amount of developed land per capita in
urban areas differs across the OECD
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Developed land per capita in urban cores (in m²) Developed land per capita in commuting zones (in m²)
Source: OECD calculations based on Corine Land Cover and National Land Cover
Database
Developed land per capita in urban areas
*All data is based on the OECD definition of Functional Urban Areas (FUAs)

6. Differences in GDP explain only little of the
difference in land consumption
-600
-400
-200
0
200
400
600
800
1000
USA
ISL
FIN
EST
HUN
SWE
SVK
BEL
DNK
POL
CZE
AUT
FRA
NOR
GRC
DEU
PRT
IRL
SVN
GBR
ESP
LUX
NLD
ITA
CHE
TUR
Difference from OECD mean (26 countries)
Difference from OECD mean after controlling for GDP
Percapitalandconsumptioninm²
(differencefrommean/residuals)
Source: OECD calculations based on Corine Land Cover and National Land Cover
Database

7. Land use in urban cores and commuting
zones in the U.S.
Urban Cores
Numberofmetropolitanareas
Developed land per capita in m² Developed land per capita in m²
Commuting zones
Source: OECD calculations based on National Land Cover Database
05
10
0 1000 2000 3000 4000 5000
05
10
0 1000 2000 3000 4000 5000

8. Developed land is growing everywhere…
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Annual % growth of developed land in commuting zone Annual % growth of developed land in core
Annual growth rates of developed land between 2000 and 2012
Source: OECD calculations based on Corine Land Cover and National Land Cover
Database

9. -1.0%
-0.8%
-0.6%
-0.4%
-0.2%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
Annual percentage change in developed land per capita 2000 - 2012
…but per capita land use is declining in
many countries
Per capita growth of developed land in functional urban areas
Source: OECD calculations based on Corine Land Cover and National Land Cover
Database

10. Housing costs have risen strongly in most
OECD countries
Inflation-adjusted property prices (1995=100)
0
50
100
150
200
250
300
350
400
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Australia Belgium Canada Switzerland Germany
Denmark Spain Finland France United Kingdom
Ireland Italy Japan Netherlands Norway
New Zealand Sweden United States Average
Sweden
Japan
Ireland
UK
Germany
Norway
United States

11. Restrictive land use policies can lead to
rising housing costs
Annualchangehouseprices
(2000-2012)
Annual change in developed
land per capita (2000-2012)
• Land use regulations
should aim to
prevent sprawl…
• …but have to provide
sufficient space to
construct housing
for growing
populations
• Otherwise, housing
costs rise
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
-1.0% -0.5% 0.0% 0.5% 1.0%

12. POLICY
RECOMMENDATIONS

13. Very little densification is taking place
• Very little densification of building stock on-going since 2000
• Less than 0.01% of developed land in data has changed to a
higher density class in Europe; less than 1% has changed in the
U.S.
• Caveat: existing data not ideal to measure density; only two
density classes for Europe; four density classes for the U.S.
Europe United States
Densified
land since
2000/01
Land with constant
density since 2000/01
Source: OECD calculations based on Corine Land Cover and National Land Cover
Database

14. • Many cities have densities similar to when
they were much smaller
Low density neighbourhoods that were once at
the urban fringe are now within urban cores
without having densified
• Greater densities are needed to adapt urban
form and build housing for greater
populations
• Public spaces need to be of high quality in
denser environments to ensure well-being
High quality density is needed

15. Mixed-use development facilitates
higher densities
Examples of
buildings
Category I
Exclusively
low-rise
residential
Category II
Exclusively
low-rise
residential
Category I
Mid/high-
rise
oriented
residential
Category II
Mid/high-
rise
oriented
residential
Category I
residential
Category II
residential
Quasi-
residential
Neighbourhoo
d commercial
Commercial
Quasi-
industrial
Industrial
Exclusively
industrial
House
School
Temple
Hospital
Store 150m2
Store 500m2
Store
Office
Hotel
Karaoke
Theatre
Facility up to
10 000m2
Bathhouse
Garage
Warehouse
Auto repair
Factory (low
risk)
Factory (high
risk)
Source: Ministry of Land, Infrastructure and Transport (2003), Introduction of Urban Land-use planning System in Japan,
www.mlit.go.jp/common/000234477.pdf.
Single-use zoning does not exist in Japan

16. How to make planning more flexible and
foster good land use?
How land is used
Public policies aimed at steering
land use
• Spatial planning
• Transport planning
• Land use planning
• Environmental regulations
• Building code regulations
Public policies not targeted at
land use
• Tax policies
• Transport taxes and subsidies
• Fiscal systems and inter-
governmental transfers
• Agricultural policies
• Energy policies
How land is permitted to be used How individuals and businesses
want to use land

17. Fiscal and tax systems incentivise:
i. land use decisions by firms and
individuals
ii. local governments’ planning policies
Incentives need to be better aligned with
land use objectives
Aligning fiscal and tax incentives to land
use objectives

18. How fiscal and tax systems influence
land-use decisions by individuals
Home mortgage interest tax
deductibility encourages home
ownership
Since most owner-occupied
buildings are single-family
homes, home mortgage interest
tax deductibility encourages low
density development
Car owners do not have to pay for
the externalities of driving
Residents have incentives to live
further away from places of work
in peri-urban areas

19. Fiscal systems provide incentives to
local governments - examples
High local tax revenues from businesses  allocate
land predominantly for commercial uses
• Israel (OECD, 2017)
• Germany (Buettner, 2016)
High local tax revenues from income taxes 
zoning to attract (high-income) residents
• United States (Quigley & Raphael, 2005))
• Switzerland (Hilber & Schöni, 2015)
New developments create higher costs than
revenues  little land is allocated for development
• United Kingdom (Cheshire & Hilber, 2008, Hilber 2016)

20. Incentive-based policies to steer land use
are underutilised in OECD countries
• Brownfield redevelopment incentives
• Historic rehabilitation tax credits
• Transfer of development rights
• Use-value tax assessment
• Development impact fees
• Betterment levies
Compared to other OECD countries, the
U.S. is leading in their use

21. THE GOVERNANCE OF LAND USE:
METROPOLITAN CASE STUDIES

22. The big picture
How land is used now and in the future
Institutions
Governance, legislation, rules, regulations, policies, plans,
fiscal frameworks, and the patterns of incentives and disincentives they create.
Mode of control or influence
Social norms
Social cohesion and trust
Economy and industrial composition
Social-economic and demographic characteristics and change over time
Legacies of the build environment and changing urban morphology
And so on…..
Exogenous to the planning system

23. Country and metropolitan cases
• Poland: Lodz
• France: Clermont Ferrand and
Nantes-Saint Nazaire
• The Netherlands: Amsterdam
• The Czech Republic: Prague
• Israel: Umm al Fahm and Netanya

24. • More complex and participatory strategic
spatial plans
• Broader governance arrangements
• Desire for more flexible and responsive
planning systems
Governance trends

25. Planning framework – United States
State
Sub-ordinate plans must conform
Sub-ordinate plans do not need to conform
Primarily policy / strategic guidelines
Primarily land use plans
Strategic and land use guidelines
Partial geographical coverage
Local
COMPREHENSIVE PLANS
- Instruments for strategic planning and guide for the preparation of zoning ordinances
- Are advisory documents, municipalities may enforce them by ordinance
- In some states, municipalities are required to prepare a Comprehensive Plan before enacting Zoning Ordinances
- Local governments may create joint planning commissions for the preparation of regional or inter-municipal
Comprehensive Plans
STRATEGIC PLANS
- Define objectives for the spatial development of a state, referring in particular to policies at the local level
- Do not exist in most states
- 13 states have adopted a state-wide plan: Connecticut; Delaware; Florida; Georgia; Hawaii; Maine; Maryland; New
Hampshire; New Jersey; Oregon; Rhode Island; Vermont and Washington
- Content varies from state to state
ZONING ORDINANCES
- Contain map-based and text-based regulations of land use
- In most states, local governments are authorised, but not required to adopt Zoning Ordinances. Most, but not all, local
governments adopt zoning ordinances

26. Planning framework – Finland
National
Regional
Municipal
REGIONAL LAND USE PLANS
- MAAKUNTAKAAVA
- Policy frameworks to steer regional development and land use planning
- May contain land use regulations for selected areas if required by national
or regional goals or for harmonising planning across municipalities
- Scale: 1 : 1 250 000 – 1 : 100 000
LOCAL MASTER PLANS
- YLEISKAAVA
- Land use plans that provide a general outline of the urban structure of a
municipality or parts of it
- Scale: 1 : 10 000
LOCAL DETAILED PLANS
- ASEMAKAAVA
- Detailed land use plans containing buildings arrangements and permitted
types of use for plots
- Used primarily in urban areas and other densely built areas
- Scale: 1 : 2 000
NATIONAL LAND USE OBJECTIVES
- VALTAKUNNALLISET ALUEIDENKÄYTTÖTAVOITTEET
- Policy framework used by the Government to steer policies on land use
issues important for the whole country
- Binding for all land use plans and the work of the state authorities
A RENEWABLE AND ENABLING FINLAND
- UUSIUTUMISKYKYINEN JA MAHDOLLISTAVA SUOMI
- Long-term overall vision for the development of the
Finnish regional structure and traffic system
- Time horizon 2050
Sub-ordinate plans must conform
Sub-ordinate plans do not need to conform
Primarily policy / strategic guidelines
Primarily land use plans
Strategic and land use guidelines
Partial geographical coverage

27. Planning framework – New Zealand
General framework
National
Regional
Municipal
DISTRICT PLANS
- Zoning plans
- Regulate in detail urban and rural land use
- Variable scale
REGIONAL POLICY STATEMENTS
- Provide an overview of the natural resources of a
region and the policies and tools to manage them
- Promote the sustainable management of natural
resources
- Must be consistent with the National
Environmental Standards relating to air quality,
water quality, telecommunication, electricity
distribution, soil contamination
SPATIAL PLAN
- Set strategic directions for
regions and their communities
- Integrate social, economic,
environmental and cultural
objectives
- Mandatory for Auckland,
voluntary for other regions
REGIONAL PLANS
- Lay out the responsibilities of regional councils,
including water levels and water flows, water
allocation and use, dumping of wastes, discharge
of contaminants into the air, water and land
REGIONAL COASTAL PLANS
- Cover maritime activities
- Must be consistent with the
New Zealand Coastal Policy
Statement
- May be prepared as a separate
document or integrated into the
Regional Plan
NATIONAL POLICY
STATEMENTS
- Policies on electricity
transmission; freshwater
management; coastal policy
objectives; and National
Environmental Standards
Sub-ordinate plans must conform
Sub-ordinate plans do not need to conform
Primarily policy / strategic guidelines
Primarily land use plans
Partial geographical coverage
Sectoral Plans

28. Planning framework – Mexico
Sub-ordinate plans must conform
Sub-ordinate plans do not need to conform
Primarily policy / strategic guidelines
Primarily land use plans
Strategic and land use guidelines
Partial geographical coverage

29. Planning framework – Germany

30. Planning framework – Japan

31. Planning framework – Netherlands

32. • Growing economy and population
• Many competing demands on land
Example in practice:
Green Growth in Amsterdam

33. Six spatial development ambitions to 2040:
1. Increasing density
2. Transforming mono-functional areas
3. Enhancing regional transportation
4. Increasing the quality of public space
5. Investing in the recreational use of green
space and water
6. Preparing for a post-fossil fuel era
Amsterdam’s spatial development
ambitions

34. • New spatial planning legislation pursues
certainty where needed, and flexibility
where prudent
• It encourages flexible and experiential
land uses where possible
• To be implemented in 2018
New Dutch Environmental and Planning
Act (2016)

35. • New ways of working and new skills for
planners
• Iterative approaches
• Monitoring and assessment
• A growing role for fiscal instruments?
Key issues for planning in the
Netherlands

36. • A growing residential economy, fragile
coastal environment
• Metropolitan area = 108 communes
Example in practice: integrated planning
in Nantes Saint Nazaire

37. • Regions are now the lead actors for
strategic spatial planning and sustainable
development
Recent French reforms

38. • Strengthen the planning capacities of
smaller communes
• Enhance monitoring and management of
periurban zones
• Combine regulatory and economic
incentives to meet spatial goals
• Enhance vertical co-ordination
Key issues for spatial planning in
France

39. Overarching questions
• How to balance the desire for a flexible and
adaptive system against the need for
certainty and fairness
• The scale at which planning issues should be
tackled
• How to balance the goals of environmental
sustainability, social equity, affordable
housing, economic growth and liveability-
wellbeing
• How to resolve conflict
• When and how to engage and with whom

40. THANK YOU
Tamara Krawchenko: tamara.krawchenko@oecd.org
Abel Schumann: abel.schumann@oecd.org