5.1.1 Land as a Special Asset 

5.1.1. Land as a Special Asset

Land has always occupied a unique position in economic thought. Unlike ordinary commodities, land is not produced by human labor, cannot be reproduced, and possesses a fixed spatial location. These characteristics fundamentally distinguish land from other forms of capital and establish it as a special economic asset [1–3].

The value of urban land is determined not only by its physical characteristics but also by its location, accessibility, surrounding infrastructure, planning regulations, public investment, environmental quality, and socioeconomic activities. These factors have been widely recognized as the principal determinants of urban land value in classical and modern urban economics [4–8]. As cities evolve, continuous changes in transportation systems, public services, economic activities, and land-use policies reshape the relative advantages of different locations, causing urban land values to change over time.

Because of its immobility, fixed supply, and spatial heterogeneity, land generates economic rent rather than conventional production profits. This distinctive characteristic has made land the central object of urban economics and the theoretical foundation of land rent theory for more than two centuries [2,4–6].

Understanding land as a special asset therefore provides the conceptual foundation for investigating urban value formation. Building upon these established theories, the ULVF framework extends the traditional perspective by treating urban value as a continuous spatial field generated through the interaction of multiple urban factors rather than as an isolated property of individual land parcels. This shift forms the theoretical basis for the Urban Value Field Economics (UVFE) framework developed in this book.

[1] Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.

[2] Ricardo, D. (1817). On the Principles of Political Economy and Taxation.

[3] George, H. (1879). Progress and Poverty.

[4] Alonso, W. (1964). Location and Land Use.

[5] Muth, R. F. (1969). Cities and Housing.

[6] Fujita, M. (1989). Urban Economic Theory: Land Use and City Size.

[7] O'Sullivan, A. (2012). Urban Economics.

[8] Brueckner, J. K. (2011). Lectures on Urban Economics.