Literature review
The end of the planner’s paradise?
Governance models and the evolving role of
municipalities in land policy
Sophia (XXX)
Supervised by Dr. Francesca Pilo
27 June 2025
,Literature review Utrecht
Table of contents
2 27 June 2025
,Literature review Utrecht
1. Introduction
Land governance refers to the broader system of institutions, actors, and decision-
making processes that shape access to and control over land (Borras & Franco, 2010).
Rather than a static structure, it constitutes a dynamic field shaped by legal
frameworks, governance cultures, and political ideologies that vary across countries.
Within this field, municipalities increasingly operate as key actors. Decentralisation,
deregulation, and the fragmentation of spatial planning responsibilities have led
national governments to shift land-related competences to local levels (Alexander,
2001). As a result, municipalities are now central to the implementation of spatial
objectives, yet their roles differ significantly depending on the governance model in
which they are embedded.
The role of municipalities in land governance is not uniform. Research shows that
their capacity to act depends on institutional context. Municipalities do not operate in
isolation, but within governance systems that define their powers, responsibilities,
and strategic possibilities (Normann & Vasström, 2012). Municipal land policy refers to
the concrete tools and instruments municipalities use to influence spatial
development and achieve (spatial) objectives such as housing, sustainability, and
spatial quality (Van Oosten, Witte, & Hartmann, 2018). These strategies are shaped by
how governance is organised across levels of government.
This literature review explores how governance models shape the role of
municipalities in land policy. A growing body of literature highlights variation in
municipal strategies across Europe. In a comparative study of the Netherlands,
Germany, and Belgium, Shahab, Hartmann, & Jonkman (2021) distinguish four ideal
types of municipal land policy: active, passive, reactive, and protective. They argue
that these strategies are not simply the result of local choice but are embedded in
national frameworks that shape what municipalities can and cannot do. For example,
in the Netherlands, municipalities have historically acquired and serviced land to
steer development, while in Germany, the municipal role tends to be more facilitative
due to a stronger market orientation and limited public landownership.
Krigsholm, Puustinen, & Falkenbach (2022) extend this insight in a study of Finnish
municipalities, identifying five strategic profiles that vary depending on objectives,
public land holdings, and cooperation with private actors. Razin (2000) similarly
demonstrates that the way local government is organised affects how municipalities
steer land use and development. These studies collectively suggest that governance
models matter. They do not determine municipal behaviour in a strict sense but
rather structure the conditions under which municipalities operate.
The Netherlands provides a telling example. Dutch municipalities were long
considered leaders of active land policy, supported by legal instruments and public
funding (Van Oosten, Witte, & Hartmann, 2018). This approach enabled them to steer
urban growth and capture land value increases for public use. However, this model
3 27 June 2025
, Literature review Utrecht
came under pressure in the 1990s due to market liberalisation and the withdrawal of
the central government from spatial planning. The financial crisis of 2008 further
undermined active strategies, particularly for smaller municipalities that lacked the
financial resilience to bear development risks. Although many municipalities have
since reduced their land acquisitions, they continue to play a central role by setting
development conditions, monitoring market dynamics, and adapting strategies
accordingly (Nieland, Meijer, Jonkman, & Hartmann, 2019). Rather than withdrawing
from land policy altogether, Dutch municipalities increasingly engage in a more active
facilitating role, reflecting a more selective and strategic approach within a
decentralised governance context (Tennekes, 2018).
While national case studies offer valuable insights into municipal land policy, the
relationship between governance models and municipal land policy has received
limited attention. We know that municipal strategies differ across contexts, but it is
less clear how these differences emerge from factors such as decentralisation, legal
authority, or governance culture. This literature review seeks to bridge that gap by
analysing how governance models shape the role of municipalities in land policy. In
doing so, this literature review focuses on the relationship between land governance
and land policy, as well as the role of municipalities in it.
This focus is not only of theoretical relevance. As spatial challenges such as housing
shortages and climate adaptation intensify, municipalities are increasingly expected
to deliver integrated solutions. Yet their capacity to act is not uniform; it is shaped by
the institutional frameworks in which they operate. Clarifying how governance
models shape municipal strategies therefore provides theoretical insight for
comparing national systems and a practical foundation for evaluating what kinds of
institutional conditions enable effective local land policy.
This literature review aims to address this gap by exploring the following research
question: “How do governance models influence the role of municipalities in land policy?”
To answer this question, the literature review is organised in three chapters. Chapter
2 introduces the concept of land governance, reviewing theoretical debates and
identifying different governance models across countries. Chapter 3 focuses on the
role of municipalities within these models, highlighting how legal frameworks and
governance cultures shape local land policy strategies. Chapter 4 focuses on the
Dutch case, where municipalities have historically pursued active land policy but now
operate in a more decentralised and liberalised planning context. Together, these
chapters provide a structured understanding of how governance models affect the
strategic role of municipalities in land policies.
4 27 June 2025
The end of the planner’s paradise?
Governance models and the evolving role of
municipalities in land policy
Sophia (XXX)
Supervised by Dr. Francesca Pilo
27 June 2025
,Literature review Utrecht
Table of contents
2 27 June 2025
,Literature review Utrecht
1. Introduction
Land governance refers to the broader system of institutions, actors, and decision-
making processes that shape access to and control over land (Borras & Franco, 2010).
Rather than a static structure, it constitutes a dynamic field shaped by legal
frameworks, governance cultures, and political ideologies that vary across countries.
Within this field, municipalities increasingly operate as key actors. Decentralisation,
deregulation, and the fragmentation of spatial planning responsibilities have led
national governments to shift land-related competences to local levels (Alexander,
2001). As a result, municipalities are now central to the implementation of spatial
objectives, yet their roles differ significantly depending on the governance model in
which they are embedded.
The role of municipalities in land governance is not uniform. Research shows that
their capacity to act depends on institutional context. Municipalities do not operate in
isolation, but within governance systems that define their powers, responsibilities,
and strategic possibilities (Normann & Vasström, 2012). Municipal land policy refers to
the concrete tools and instruments municipalities use to influence spatial
development and achieve (spatial) objectives such as housing, sustainability, and
spatial quality (Van Oosten, Witte, & Hartmann, 2018). These strategies are shaped by
how governance is organised across levels of government.
This literature review explores how governance models shape the role of
municipalities in land policy. A growing body of literature highlights variation in
municipal strategies across Europe. In a comparative study of the Netherlands,
Germany, and Belgium, Shahab, Hartmann, & Jonkman (2021) distinguish four ideal
types of municipal land policy: active, passive, reactive, and protective. They argue
that these strategies are not simply the result of local choice but are embedded in
national frameworks that shape what municipalities can and cannot do. For example,
in the Netherlands, municipalities have historically acquired and serviced land to
steer development, while in Germany, the municipal role tends to be more facilitative
due to a stronger market orientation and limited public landownership.
Krigsholm, Puustinen, & Falkenbach (2022) extend this insight in a study of Finnish
municipalities, identifying five strategic profiles that vary depending on objectives,
public land holdings, and cooperation with private actors. Razin (2000) similarly
demonstrates that the way local government is organised affects how municipalities
steer land use and development. These studies collectively suggest that governance
models matter. They do not determine municipal behaviour in a strict sense but
rather structure the conditions under which municipalities operate.
The Netherlands provides a telling example. Dutch municipalities were long
considered leaders of active land policy, supported by legal instruments and public
funding (Van Oosten, Witte, & Hartmann, 2018). This approach enabled them to steer
urban growth and capture land value increases for public use. However, this model
3 27 June 2025
, Literature review Utrecht
came under pressure in the 1990s due to market liberalisation and the withdrawal of
the central government from spatial planning. The financial crisis of 2008 further
undermined active strategies, particularly for smaller municipalities that lacked the
financial resilience to bear development risks. Although many municipalities have
since reduced their land acquisitions, they continue to play a central role by setting
development conditions, monitoring market dynamics, and adapting strategies
accordingly (Nieland, Meijer, Jonkman, & Hartmann, 2019). Rather than withdrawing
from land policy altogether, Dutch municipalities increasingly engage in a more active
facilitating role, reflecting a more selective and strategic approach within a
decentralised governance context (Tennekes, 2018).
While national case studies offer valuable insights into municipal land policy, the
relationship between governance models and municipal land policy has received
limited attention. We know that municipal strategies differ across contexts, but it is
less clear how these differences emerge from factors such as decentralisation, legal
authority, or governance culture. This literature review seeks to bridge that gap by
analysing how governance models shape the role of municipalities in land policy. In
doing so, this literature review focuses on the relationship between land governance
and land policy, as well as the role of municipalities in it.
This focus is not only of theoretical relevance. As spatial challenges such as housing
shortages and climate adaptation intensify, municipalities are increasingly expected
to deliver integrated solutions. Yet their capacity to act is not uniform; it is shaped by
the institutional frameworks in which they operate. Clarifying how governance
models shape municipal strategies therefore provides theoretical insight for
comparing national systems and a practical foundation for evaluating what kinds of
institutional conditions enable effective local land policy.
This literature review aims to address this gap by exploring the following research
question: “How do governance models influence the role of municipalities in land policy?”
To answer this question, the literature review is organised in three chapters. Chapter
2 introduces the concept of land governance, reviewing theoretical debates and
identifying different governance models across countries. Chapter 3 focuses on the
role of municipalities within these models, highlighting how legal frameworks and
governance cultures shape local land policy strategies. Chapter 4 focuses on the
Dutch case, where municipalities have historically pursued active land policy but now
operate in a more decentralised and liberalised planning context. Together, these
chapters provide a structured understanding of how governance models affect the
strategic role of municipalities in land policies.
4 27 June 2025
