Land law and urban planning in Spain: An economic perspective

Abstract

This paper builds on descriptions of the Spanish town planning system to examine it from an economic perspective. In particular, it emphasizes the mechanisms through which planning is delivered and their implications for economic decision‐making in a constrained land market. This raises issues concerning the choice of planning instrument and the economizing reactions they generate. It also highlights three aspects of Spanish planning which display explicit economic intent; land taxation, planning gain and profit sharing between landowners. Examination of these issues indicates that the planning system may be at odds with objectives such as the control of speculation in land. The results suggest a partial agenda for empirical research.