Tactics to Balance Benefits among Stakeholders in Government-Led Urban Renewal: Case Study in Guangzhou, China

The government-led mode of urban renewal plays an important role in assisting less profitable projects in addressing the problems of urban decay and promoting the intensive use of land. However, the imbalance between the benefit distribution for multiple stakeholders hinders the success of urban renewal projects. This study initially proposed a theoretical model of a dynamic game among the government, developers, and residents in government-led projects, which was validated by a case study on Liede Village, Guangzhou, China. This study identified the critical factors that influence the payoff in the proportion of construction land, which includes a comprehensive plot ratio (CPR) for commercial construction land and resettlement housing land. Sensitivity analysis and Monte Carlo experiments were conducted to measure the influence of these factors on benefit distribution. The results suggested that conflicts exist in the proportional distribution of construction land, and the increase in the CPR could compensate for the loss of the land proportion. Finally, strategies for balancing benefit distribution among stakeholders were proposed to help the government sector mitigate the financial burden and ensure public interest in urban renewal.