General Data
Name of instrument Tradeable land use permits (= handelbare Flächenausweisungskontingente)
Country DE
Spatial level federal state
Type Economic instruments
Subtype Creation of markets / regional marketing
Description Federal authorities or federal states provide every municipality with a certain amount of land use permits free of charge according to its socioeconomic structure and central-place-category. If municipalities feel the need to allocate more building plots than covered by these permits, they will need to purchase additional land use certificates through a land use permit "stock exchange". The prices for these additional permits are fixed through market economy mechanisms of supply and demand. Therefore, this instrument gives municipalities the chance to create revenues on undeveloped land. In the process of approving municipal land use plans and the extent of zoning for building land, the supervisory authority (=district administration) would check that for every plot zoned for construction the municipality holds a land use permit. On supra-regional level, tradeable land use permits limit the new uptake of land over a certain planning period.
General objectives Making the economic use of land resources a financial asset.
General objectives keywords municipal funds; building regulations; municipal land policy; tradeable use rights;
Responsible Federal state/Province authority
Stakeholder Involved Local authority/Municipal council; Private individuals; Entrepreneurs/businessmen;
General assessment of strength and weakness Strength: Ensures the limitation of newly developed areas over a planning period to a fixed limit. Municipalities featuring a low level of housing development will profit from this instrument. As a function of supply and demand, market prices of land use permits will increase in the case of ongoing uptake of land for building and infrastructure purposes. This effect will in that case become a limiting factor for new uptake.
Weakness: Pure market orientation is in contradiction with the needs of spatial plannning (or needs to be accompanied by strict planning regulations). Wealthy municipalities can afford these permits easier than other municipalities and thus, the process of suburbanisation will not be stopped. Less wealthy municipalities could be restricted to providing ecological compensation areas through transfer of building permits to wealthier and economically dynamic municipalities.
Instrument may contradict paradigm of decentralised concentration.
Date of entry 31.01.2007
Legal status mandatory for responsible body, BUT NOT for end-user
Extension pilot status
Comment Instrument is broadly discussed in research and politics, but not implemented yet.
Type of monitoring none
Preconditions for implementation Legal framework needs to be established on national level. Provisions must be made to ensure that land development based on tradeable land use permits is nonetheless in accordance with the needs of spatial planning.
General comment
Status very strong direct relevance
Ranking 5
Remark -
Status -
Ranking 0
Remark not yet implemented
Ranking 1
Status Budget, staff, legislation, know-how, political will
Ranking 1
Remark -
Status Direction of effect, type of effect, acceptability, perpetuity
Ranking 4
Remark Potentially one of the most effective instrument to manage land resources