Revisiting the Purpose of Land Policy: Efficiency and Equity

Land policy influences how and by whom land is used; therefore, it impacts the efficiency and equity of land use. This paper offers an economic perspective on efficiency and equity as fundamental purposes of planning and land policy. It brings a highly needed mutual understanding between planning and economics, whilst acknowledging the limitations of the theoretical concepts of efficiency and equity in their real-world applications. The paper also provides a solid ground for analysing trade-offs between efficiency and equity of land policy interventions. Situations minimising trade-offs should be of particular interest as they provide opportunities for improvements without necessary sacrifices.