Transit Value Capture
  • About
  • Transit Value
  • Capture
Delivering Insights on Capturing the Value of Transit

Another person lured to the topic by Hong Kong value capture

11/4/2014

0 Comments

 
I'm always amazed at how frequently the extreme case of Hong Kong's MTR introduces people to the concept of value capture and excites them enough to write about it in the public realm. In another such case, a writer at Market Urbanism has taken the bait and gotten hooked! In the process, Jeff Fong's two part post (part 1, part 2) also provides some insights from the economist's perspective.


Fong discusses the market efficiency of the Hong Kong's institutional structure. He suggests that high TOD transaction costs motivate consolidated/integrated firms like MTR (which he contrasts to vertically disintegrated firms that have relatively low transaction costs while coordinating to produce Apple's products). By owning property near its transit stations and acting as land developer, MTR significantly reduces the costs that would be borne by separate entities.

In the US, where such institutional combinations are improbable due to the politics surrounding private property rights, we're unlikely to see an MTR-like agency arise. Thus, based on Fong's arguments, we won't see transaction costs internalized and reduced by a property-oriented transit agency and we won't see transit agencies achieve market efficiencies in the ways experienced by MTR in Hong Kong.
0 Comments



Leave a Reply.

    RSS Feed


    Author

    Ian Carlton is a transportation and land use expert specializing in transit-oriented development (TOD). He helps clients - including transit agencies, planning departments, and landowners - optimize real estate development around transit.

    View my profile on LinkedIn

    Archives

    March 2019
    February 2019
    July 2018
    June 2018
    October 2016
    July 2016
    June 2016
    May 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    May 2015
    March 2015
    January 2015
    December 2014
    November 2014
    October 2014
    July 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014


    Categories

    All
    Joint Development


    Special thanks to Burt Gregory at Mithun for permission to use the Portland Streetcar image above.
Picture
ABOUT
TRANSIT VALUE
CAPTURE
Copyright 2008-2020. Ian Carlton. All Rights Reserved.
Photo used under Creative Commons from permanently scatterbrained
  • About
  • Transit Value
  • Capture