Citation

Negashi YT. Am. J. Traffic Transp. Eng. 2022; 7(2): 28-44.

Copyright

(Copyright © 2022, Science Publishing Group)

DOI

10.11648/j.ajtte.20220702.11

PMID

unavailable

Abstract

The dramatic increment in the need and expansion of road infrastructure requires a sustainable source of funding. The need to implement infrastructure funding by capturing the value uplift due to pubic action becomes an important issue in most developing countries and Ethiopia is not an exception. Road infrastructure has been identified as a major factor in the development of a nation and where is lacking or inadequate usually creates a memorable hardship for road users. Most previous research done was on the subject focuses on financing road infrastructure using traditional funding based on budgetary mechanism. However, the main objective of this research article focuses on the possibility to implement land value capture to finance to expand road infrastructure in the Dire Dawa City. The study applied both qualitative and quantitative approaches where primary and secondary data sources were used. Primary Data was gathered from 166 households and tenant respondents chosen using systematic random sampling techniques and simple random sampling techniques from 10 key informant interviews and 12 Focus Group Discussions that were selected purposively. Secondary data were gathered from different written and documented sources. Quantitative data were analyzed by using descriptive statistical tools like tables, bar graphs, and analytic tools by using Microsoft excel, and Strata software. The finding of this study showed that there was a higher need for sustainable fund sources to respond to an increase in road infrastructure expansion demand in the future. The positive relationship between road infrastructures and land value increment in the study area was observed and it indicates the implementation of appropriate land value capture mechanisms. The mechanisms must have devised to fit for each particular situation. Therefore, applying land value capturing is legitimate to solve the shortage of finance for future expansion of road infrastructure in Dire Dawa City.

Language: en