Reflections on TOD in China: From land finance to inclusive growth

Abstract

Transit-oriented development (TOD) is a sustainable land use planning tool based on land value-added capturing and urban quality improvements and has been vigorously promoted by Chinese city governments. However, few studies have been conducted on the role of the ‘land finance’ model and on people-oriented planning approach focusing on urban inclusive growth. This paper examines the current implementation of TOD in China and attempts to explore the approach to the paradigm transformation of urban development in China. Evidence from Hangzhou illustrates that the current land-centered and property-led urban rail transit construction, although contributing to the economic sustainability of ‘urban development strategy’, has led to unaffordable housing prices and failed to decentralize population away from downtown areas. This study highlights inclusive growth models which integrate TOD planning with affordable housing for the floating population, not only to ensure equity in housing affordability and space accessibility but also to promote polycentric urban development strategies. The locations of inclusive growth models include new towns/sub-cities, traditional cores and suburbs, which are all based on existing industrial cluster areas and promote the full utilization of existing public service facilities.