Funding on the Line? Understanding community preferences for value capture - the case of Melbourne ’s Suburban Rail Loop

Min Zhang; Abraham Leung; Lynette Cheah; Ruoyu Chen; Matthew Burke

doi:10.1016/j.tranpol.2026.104193

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Funding on the Line? Understanding community preferences for value capture - the case of Melbourne ’s Suburban Rail Loop

Journal article

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Funding on the Line? Understanding community preferences for value capture - the case of Melbourne ’s Suburban Rail Loop

Min Zhang, Abraham Leung, Lynette Cheah, Ruoyu Chen and Matthew Burke

Transport Policy, Vol.185, pp.1-16

2026

DOI: https://doi.org/10.1016/j.tranpol.2026.104193

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Abstract

Adaptive choice based conjoint

Land value capture

Public transport funding

Stated preference

Willingness to pay

Debates on land value capture (LVC) often lack empirical evidence on public acceptance of specific funding instruments. This study develops and applies a replicable adaptive choice-based conjoint (ACBC) survey framework to estimate community support and willingness to pay (WTP) for hypothecated levies to fund major public transport infrastructure. Using Melbourne’s Suburban Rail Loop (SRL) as a case study, we administered a panel survey to respondents (n = 637) drawn from predefined catchment and matched control postcodes in September–October 2021, and estimated part-worth utilities using hierarchical Bayesian (HB) methods Respondents evaluated levy packages varying across four attributes: levy base (area-wide flat, distance-tiered, or value-uplift), payment term (fixed versus ongoing), delivery timing (0 to 3 years sooner), and price (annual amount chargable per household). Results show that while price is the dominant attribute, directionally consistent preferences for other attributes are still evident. Respondents strongly prefer fixed-term charges and demonstrate positive WTP for accelerating project delivery by one to two years. At the aggregate level, levy base differences are less certain, with credible intervals overlapping zero for all comparisons; however, area-wide flat levy designs show broader acceptance across distance bands, while support for value-uplift bases is sensitive to planned station proximity We further identify disparities in awareness, support, and willingness to pay: women, non-English-speaking respondents, and those uncertain of their property’s value show lower awareness or support, while non-owners and residents outside the project catchment exhibit lower willingness to pay and less support for the levy. More importantly, support levels measured after the conjoint tasks are contingent on specific levy designs, suggesting that public attitudes are highly sensitive to funding instrument design. Findings suggest that area-wide flat, fixed-term levies with a short delivery acceleration window are most likely to achieve broad community acceptance. Policymakers should account for heterogeneity in awareness and proximity when delineating beneficiary areas and designing communication strategies. The ACBC framework demonstrated in this paper is transferable to comparable infrastructure funding contexts, subject to adaptation for local institutional conditions.

Details

Title: Funding on the Line? Understanding community preferences for value capture - the case of Melbourne ’s Suburban Rail Loop
Authors: Min Zhang - Guizhou University
Abraham Leung (Corresponding Author) - University of the Sunshine Coast
Lynette Cheah - University of the Sunshine Coast
Ruoyu Chen - University of Southern California
Matthew Burke - Griffith University
Publication details: Transport Policy, Vol.185, pp.1-16
Publisher: Elsevier Ltd
Date published: 2026
DOI: 10.1016/j.tranpol.2026.104193
ISSN: 1879-310X
Data Availability: The survey instrument, analysis code, and part-worth utility estimates are available at https://osf.io/bcwy8/.
Grants: Funding on the line: Public transport financing and property value capture, LP150100078, Australian Research Council (Australia, Canberra) - ARC
Grant note: Funding contributors include the Queensland Department of Transport and Main Roads, Transport for NSW, Gold Coast City Council and Queensland Airports Limited. Additional support was provided by the National Natural Science Foundation of China under Grant No. 42501260. Dr Min Zhang’s position and associated research activities were supported by the Natural Science Special Research Fund for Special-Post Talents of Guizhou University (Grant No. 2025-07), the Guizhou Provincial Science and Technology Project for Returned Overseas Scholars (Grant No. 2025-005), and the Youth Guidance Project of Guizhou Provincial Basic Research Program (Grant No. QKHJC-QN(2025)051).
Organisation Unit: School of Science, Technology and Engineering
Language: English
Record Identifier: 991228944702621
Output Type: Journal article

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