Something between 20 and 50 Percent - Understanding heterogeneous implementation of added value capture in Switzerland

Hengstermann, Andreas Heinrich; Viallon, François-Xavier (2023). Something between 20 and 50 Percent - Understanding heterogeneous implementation of added value capture in Switzerland. Town planning review, 94(2), pp. 149-172. Liverpool University Press 10.3828/tpr.2021.38

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When handling planning-related changes in land values, most planning systems are somewhat imbalanced. Whereas reduction of values (e.g., regulatory takings) are compensated fully, value increments remain to the landowners most often. Scholars and politicians have claimed to introduce an instrument to capture this added value to counterbalance this imbalance. Switzerland is one of the few countries that has actually introduced such an instrument in planning law. National legislators states that planning advantages are to be compensated at a rate of at least 20 per cent of planning related advantages (art. 5 SPA). However, municipalities are granted discretion to shape the instrument by, e.g., defining a capture rate of 50%. The present study aims to understand which contextual factors influence municipalities to use the discretion granted the most. Based on a qualitative comparative analysis (QCA) of a representative set of 33 municipalities within the Canton of Bern, we examined five contextual factors (political, socio-economical, land managerial, administrative, and financial context) and their influence on the actual implementation of added value capture. Our analysis shows that the professionalism of the local administration has the most substantial influence on the actual shape of the instrument’s implementation.

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