Pricing urban design in metro station areas
The way to increase the supply of more high-quality urban spaces
Well-designed urban space is what economists call a ‘public good’. One way of achieving more supplies of high-quality urban spaces would be to attach a price to urban design benefits. In this project. we explore the possibilities of ‘pricing’ urban design in metro station areas to increase the supply of more high-quality urban spaces in high-density cities. By ‘pricing’, we mean charging beneficiaries, directly or indirectly, via transactions that capture the value of urban design. Many stakeholders, such as local government, transit agencies, real estate developers, and residents, create and benefit from high-quality station areas. However, the metro station area is consumed by many people and therefore is difficult to price. But if the urban design in the station areas could be priced, it could be provided and allocated more efficiently. Thus, pricing could recover the costs of design-enhancing investment and lead to the supply of more high-quality urban spaces around metro stations. It could, in this way, induce a more efficient allocation of resources, as money-capital owned by an individual or a group of individuals, is turned into high-quality urban spaces that benefit the many.
We like the analogy of Starbucks and similar innovators, who discovered how to price ‘comfort’ into a cup of coffee and thereby deliver a major innovation that helped draw pedestrians back to the city centres: private leather-arm chair filled lounges, with rental for seating priced into the coffee. How might we similarly create a revolution in how high-quality urban space is supplied in our cities in a manner that spreads and captures the economic and other value created by metro investment?
Project Outputs
This project is funded by the National Natural Science Foundation of China (NSFC), Pricing urban design in the walking catchment of metro stations (2021.01-2025.01, 580,000RMB).
Dr Guibo Sun
Director
Dr Guibo Sun is a Lecturer in Urban Planning at the University of Manchester. His research examines how major urban infrastructure shapes cities and affects social and health outcomes, spanning the intersections of planning, land policy, transportation, urban design, and public health.
Dr Dongsheng He
Research Fellow
Dr Dongsheng He advances sustainable urbanisation through integrated transportation and land use planning. His research explores strategies to promote active travel and implement transit-oriented development (TOD) as pathways to creating more liveable, low-carbon cities. His work has examined the mechanisms of land value capture in relation to TOD, identifying how municipalities can leverage this approach to finance expanded transit infrastructure while supporting broader sustainable development goals.
