Strategic land banking in the Netherlands: Experiencing Dutch dilemmas

Within a public perspective on land policies, land banking of regional authorities is a very special instrument, as it links spatial policymaking directly to its implementation. Therewith, it is greatly increasing the effectiveness of spatial policymaking. Yet, its effectiveness also depends upon its specific context. It will be made clear that the potential of land banking for the implementation of regional spatial policies is enormous, especially in the Netherlands, for it adds a powerful instrument, rooted in private law, to the regional spatial planning toolkit. Traditionally, the Dutch provinces played an important role in regional spatial developments, using instruments based on public law. Nowadays, however, they are also getting more and more involved as an active (private) player on regional land markets as well. Analytically, these two roles create many controversies as public and private interests of provinces tend to mix. This results in controversies in terms of effectiveness (including efficiency) and legitimacy. Both theoretically as well as empirically, the controversies can be reduced into three tension areas, concerning (1) rationales for regional land policies, (2) conflicts of interests with municipalities, and (3) inflation of land prices.