Designing incentive packages for increased density and social inclusion in the neighbourhood of mass transit stations

Abstract

Local and central authorities have long been interested in taking advantage of investments in mass transit to achieve more sustainable urban development. In the case of Santiago de Chile, a highly income-segregated metropolis that also suffers an increasing urban sprawl, its underground (Metro) and BRT corridor networks offer a unique chance to revert these malaises. In effect, Santiago’s modern transit infrastructure is undercapitalized, there are many areas with little or no development in the vicinity of Metro and BRT stations that could be densified providing housing to the growing population, and hopefully even turned into sub centres with urban equipment, servicing the poorer areas, thus diminishing social and spatial segregation.

We sought to understand and measure how different government incentive packages could attract private investment into such areas. We used a combination of stated choice and best-worst scaling data to examine the potential power of various government grants to encourage density development, including social integration, at these locations. Our results allowed us to identify a typology of urban areas that respond differently to the incentive packages. The differentiated analysis of the urban areas, their tendencies and perception of potential real estate developers is a significant first step to design ad hoc strategies to encourage sustainable development in the surroundings of Metro and BRT stations.