Institutional conditions for sustainable private sector-led urban development

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Across the globe sustainable private sector-led urban development projects (SPUDPs) in the built environment rarely commence as real estate developers face several institutional barriers which limit their capacity to develop economic-viable, social-responsible, environmental-friendly urban places.  However, it is largely unknown how SPUDPs can be effectuated as insight is lacking into institutional conditions that could incentivise real estate developers to make decisions for sustainable urban development practices. This paper explores the institutional conditions, in particular the policy instruments from local planning authorities, that nudge private decision-making to realise SPUDPs, by means of a literature review resulting in a conceptual model. The paper reveals that developers can be incentivised by pro-active local planning bodies using a combination of planning policy instruments which foster a sustainability-sensitive market decision-making environment.

  • Heurkens, E.W.T.M. (2016). Institutional conditions for sustainable private sector-led urban development projects: a conceptual model. In ZEBAU – Centre for Energy, Construction and the Environment (eds.), International Conference on Sustainable Built Environment: Strategies – Stakeholders – Success factors (SBE16 Conference Proceedings, pp. 726-735). Hamburg: ZEBAU.
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