Results of an Agent-Based Market Simulation for Transferable Development Rights (TDR) in Switzerland

Gianluca Menghini, Fabian Gemperle, Irmi Seidl and Kay W Axhausen
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Gianluca Menghini: Research Unit Economics and Social Sciences, Swiss Federal Institute for Forest, Snow and Landscape Research WSL, Zürcherstrasse 111, 8903 Birmensdorf, Switzerland
Fabian Gemperle: Institute of Terrestrial Ecosystems, Swiss Federal Institute of Technology Zurich, Universitätsstrasse 22, 8092 Zurich, Switzerland
Irmi Seidl: Research Unit Economics and Social Sciences, Swiss Federal Institute for Forest, Snow and Landscape Research WSL, Zürcherstrasse 111, 8903 Birmensdorf, Switzerland
Kay W Axhausen: Institute for Transport Planning and Systems IVT, Swiss Federal Institute of Technology Zurich, Wolfgang-Pauli-Strasse 15, 8093 Zurich, Switzerland

Environment and Planning B, 2015, vol. 42, issue 1, 157-183

Abstract: Transferable development rights (TDR) are discussed or applied in various countries for a wide variety of purposes: Notably to increase building densities, preserve natural areas, compensate reduced development possibilities, and control land use in rural areas. In Switzerland, TDR, a market-oriented planning instrument, might be used to reduce the land-use problems related to the unsustainable development of the settlement areas and to manage problems with the spatially imbalanced supply and demand of existing undeveloped building zones. Our aim is to briefly introduce a TDR market concept for Switzerland, present an empirically calibrated agent-based TDR market simulation, and finally analyze the detailed simulation results. We ran the simulation with four different settings which allowed an analysis of relevant political and economic questions for Switzerland. The results show that the TDR prices were comparable with existing land prices in Switzerland. In addition, we are able to show that with the trade of TDR it would be possible to downzone 11.4 km 2 of building zone land for which there is no demand and to develop 7.4 km 2 of new building zone land up to the year 2018. Consequently, the defined building zone area would decrease, which would be in line with political objectives.

Keywords: transferable development rights (TDR); TDR market; agent-based modeling (ABM); market simulation; market clearing price (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirb:v:42:y:2015:i:1:p:157-183

DOI: 10.1068/b120066p

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