Abstract: This paper elaborates the theory of “public Appreciation”, and demonstrates that the practice of “Public Appreciation” can maximize the social benefit from the perspective of externality.Then, this paper thoroughly studies the practical experience of “public Appreciation”——urban land consolidation and zonal expropriation in Taiwan.From the enlightenment of the theory of “public appreciation” and Taiwan’s successful practices, the paper examines the existing land expropriation compensation mode in Mainland China, and attempts to modify it by distributing land value increment raised by land expropriation and development under the principle of public appreciation.