The Pinelands Development Credit Program

The “Pine Barrens” are a UNESCO-designated biosphere reserve encompassing about 1.1 million acres in southern New Jersey. A state agency, the New Jersey Pinelands Commission, in conjunction with county and local governments, works to implement land management and environmental protection goals via a comprehensive management plan. The pinelands development credit (PDC) program is one tool aimed specifically at land preservation outcomes. The PDC program is a regional “transfer of development rights” market allowing landowners to sell their rights to further develop their property and enter their land into permanent protected status. Since the program’s inception in 1982, over 55,000 acres of sensitive and rare ecosystem have been protected; the more than 1,200 transactions account for US$63 M of economic value. The PDC program is a clear illustration of the role that financial instruments and market mechanisms can play in achieving environmental protection outcomes. This case study offers an overview of the pinelands area, PDC program, and the transfer of development rights concept before examining the PDC program and its outcomes in greater detail. While the program has been hailed as a success, it will face challenges in the coming years, including a relatively inefficient process for converting PDCs into protected lands and the question of how the program can evolve once eligible lands become more scarce.

Institutional Diversity of Transferring Land Development Rights in China—Cases from Zhejiang, Hubei, and Sichuan

With the continuous urbanization, China is facing a dilemma of achieving two conflicting targets in land governance, i.e., the continuous supply of urban construction land to support urbanization and the preservation of cultivated land for food security. Under China’s dual land system, the implementation of the “Linkage between Urban-land Taking and Rural-land Giving” (Linkage) policy is of great significance in promoting more inclusive urbanization by commodifying the land development right and connecting urban and rural land markets. In the specific land property right system and changing land governance of China, this policy appears to provide an opportunity for stakeholders other than the state to compete for the value from the transfer of development rights (TDR) and triggers the emergence of diversified approaches in organizing land projects in rural China. Based on the theoretical perspective of New Institutional Economics and empirical evidence from Zhejiang Province, Hubei Province, and Sichuan Province, this paper conducts a comparative institutional analysis for China’s TDR practice and argues that the diversified operational approaches in China’s practice have aligned various interests of the stakeholders through flexible participation methods and elaborate reallocation of land property rights, in order to fit various institutional environments and material conditions

Transfer of Development Rights and Cultural Heritage Preservation: A Case Study at Athens Historic Triangle, Greece

History and the modern world co-exist in Greece’s landscape. The urban spaces of Greek cities contain structures from ancient history alongside contemporary constructions, but intense urban development from the 1960s onwards, as in the historic center of Athens, has led to imbalances with respect to cultural heritage protection. The 1975 Greek Constitution defined the preservation and protection of the cultural environment as a constitutional mandate, and severe restrictions on the exploitation of private properties deemed to be of historical or architectural importance were imposed. Property owners were deprived of their property development rights (DRs), whereas the preservation and conservation of protected constructions became costly, resulting in abandoned buildings and a downgraded urban environment. As the debate over cultural heritage protection and urban regeneration is more topical than ever, the recent legal reintroduction of the transfer of development rights (TDRs) provides new opportunities for property exploitation with respect to cultural heritage protection legislation. Herein is presented a methodological framework on the classification and 3D visualization and representation of DRs and TDRs in relation to the cultural heritage protective framework and its implementation in a selected area of Athens’ historic center. Legal and technical aspects that affect 3D DRs and TDRs are emphasized as key elements in the successful implementation of the TDR process.

Urban planning and the market of development rights in Italy: learning from Milan

In recent years, the influence of neoliberal principles has led to an experimental application of new market-oriented approaches in the field of urban studies, in order to achieve different objectives of public interest, from the compensation of land use restrictions to the acquisition of areas for public services. Also in Italy, the use of equalization and non-financial compensation mechanisms has been influenced by internationally consolidated models, such as the Transfer of Development Rights programs (TDR). The key issue concerns the legal autonomy of development rights from land ownership, allowing their trade in the municipal market and thus, in theory, balancing private and public benefits. The scientific debate focuses on the several opportunities, in terms of planning effectiveness and flexibility, but also envisages the risk to generate unfairness, deregulation and other speculations. The paper aims to assess the positive and negative impacts of a generalized use of TDR in the urban governance and in the real estate market, adopting a case study research method. The experience of Milan has been investigated, analyzing the municipal registry of development rights. The results highlight strengths and weaknesses of the market of development rights application, in particular the risk of encouraging real estate speculation, in the same way as financial markets. Conclusions suggest the need of a more effective integration of market-based tools in the planning and regulatory framework, avoiding that their uncontrolled use could weaken the role of public authority in the local government.