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Annotated Bibliography on Land Value Taxation and Value Capture
(With a little bit on the Henry George Theorem)
2007-2013
Jeffrey I. Chapman
© 2015 Lincoln Institute of Land Policy
Lincoln Institute of Land Policy
Working Paper
The findings and conclusions of this Working Paper reflect the views of the author(s) and
have not been subject to a detailed review by the staff of the
Lincoln Institute of Land Policy.
Contact the Lincoln Institute with questions or requests for permission
to reprint this paper. [email protected]
Lincoln Institute Product Code: WP15JC1
Abstract
This annotated bibliography comprises over 490 citations to literature on land value taxation and
value capture techniques published between 2007 and 2013. This working paper builds on
previous work by Grote and Dye (2008) which annotates land value taxation literature from 1870
to 2007. The companion table of contents, published as a searchable spreadsheet, indexes over
850 citations from both working papers by author, title, year, orientation (land value taxation or
value capture techniques), geography, keyword, publication type, and working paper author.
Keywords: Land Value Tax, Value Capture, Henry George Theorem
About the Author(s)
Jeffrey I. Chapman is Foundation Professor emeritus at the School of Public Affairs at Arizona
State University. His research interests include state and local fiscal sustainability, urban public
finance, and property tax reform. He can be contacted at [email protected].
Acknowledgements
This bibliography and table of contents was funded by the Lincoln Institute of Land Policy.
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Annotated Bibliography on Land Value Taxation and Value Capture
(With a little bit on the Henry George Theorem)
2007-2013
Acharya, Surya Raj, et al. (2013). Improving Institutions, Funding, and Financing. Transport
Development in Asian Megacities. S. Morichi and S. R. Acharya. Berlin, Germany, Springer-
Verlag: 229-253.
Although urban transport systems have some characteristics of public goods, the role of
public sector is significant particularly in investment and regulation. However, the private
sector’s role in recent year has been expanded and redefined. The performance of both
public and private sectors depends upon the institutional framework in place. Urban
transport in developing megacities suffers from the lack of effective institutional
arrangements. Further as urban transport activities are more capital intensive, adequate
provision of funding and financing is prerequisite for the success of any well-designed
plans and policy. However, funding and financing gaps have remained.
Acosta, Patricia (2008). Policy Learning: New Challenges for Smart Value Capture in
Colombia. Urban Studies and Planning. Cambridge, MA, Massachusetts Institute of Technology.
MS: 126.
Contribucion por Valorizacion is a form of value capture similar to a Special Assessment,
used in Colombia to complement local revenues for major public infrastructure programs.
Participacion en Plusvalias is an instrument recently implemented to capture up to 50%
of the increments on land values created by public actions, similar to betterment levies
and unearned increment taxes. This newer, more complex form of value capture faces
important implementation challenges. The purpose of this study is to evaluate both
Special Assessments (SA) and Participation in Land Value Increments (PLVI), in order
to understand what elements of the process of implementation and consolidation of SA,
can inform a strategy to make PLVI a politically sustainable policy instrument. The
research unpacks the experience in Bogota with SA and sheds light on alternate
approaches for PLVI's current managers to address the new instrument's challenging
implementation arena. The findings of the study suggest that for PLVI to be successful,
strategic choices that reframe its management as a long term policy rather than a
procedure, must be made
Adam, Stuart and Paul Johnson (2012). Tax Reform and Growth. The IFS Green Budget. C.
Emmerson, P. Johnson and H. Miller. London, England, The Institute for Fiscal Studies: 161-
179.
This chapter argues that if business rates (British property taxes) were replaced by a land
tax, development of business property would be encouraged. Mentions incidence, notes
that owners of highly developed property would gain while owners of undeveloped
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property would lose. Notes that economic activity that would be worthwhile without a
land value tax remains worthwhile with it. Also notes that there may be a possibility that
land might be shifted between business and residential use in response to the tax.
Agence, Francaise de Developpement (2009). Who Pays for Urban Transport: Handbook of
Good Practices. France, CODATU.
The development of transport infrastructure generally gives rise to an increase in the
value of the land and buildings served. The value is estimated to be between 5% to 10%
for residential properties, and between 10% and 30% for commercial properties.
Conversely, it can have a negative impact: pollution, noise, an increase in traffic, a loss of
prestige in local areas, or a drop in value in areas that are not served by public transport.
The challenge facing developers of a new line is knowing how to capture the value
generated. A number of methods have already been tested, and they can be divided into
three distinct categories: 1. anticipated purchase of land in order to sell it at a profit, or to
develop business activities on it; 2. introducing a betterment tax to capture land value
gains; 3. establishing a Public Private Partnership. None of these options are self-
contained. Book contains six case studies.
Ahlqvist, Toni, et al. (2012). South Australian Cellulosic Value Chain Technology Roadmap –
Stage 1. Assessment of the present state and future potential of forest industry in Mt Gambier
region, South Australia. Finland, VTT Technical Research Centre of Finland: 61.
The project has contains a useful augmentation of the definition of value capture. Value
capture in future manufacturing is based on dual process of value creation (innovations in
technology, design and efficiency to increase the value created in the firm) and value
appropriation (innovative business models and improvements in efficiency).
Ahmad, Nadim and Richard G. Seymour (2008). Defining Entrepreneurial Activity: Definitions
Supporting Frameworks for Data Collection. OECD Statistics Working Paper Series. O. S.
Directorate. Paris, France, Organization for Economic Co-operation and Development: 18.
While purely private sector oriented, this paper may have lessons for public
entrepreneurship and value creation and capture. Entrepreneurs generate value through
the creation or expansion of economic activity by identifying and exploiting new
products, processes or markets. Entrepreneurial activity is the pursuit of this generation
of value. Entrepreneurial activity is different from ordinary business activity. Thus, value
capture might be different from ordinary tax policies.
Aleknavicius, Audrius (2011). Problems of Real Property Taxation in Lithuania. Baltic
Strength'11. Lithuania, Lithuanian University of Agriculture: 14.
This paper analyzes the role of the property tax in Lithuania, with an emphasis on
comparing mass appraisal valuation results to real market value. Included in this
discussion is an analysis of the land value tax, which is an integral part of the property tax
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system. It finds that the taxable value of land has changed for many years, and that it is
impossible to achieve certain goals connected to land, for example improvement of
infrastructure, roads, etc. The use of market oriented land taxable value should be
introduced. The changes of valuation method and the use of mass appraisal for land
taxation can considerably increase revenue from land taxation.
Aleksiene, Albina and Arvydas Bagdonacicius (2008). Value-Based Property Taxes in Lithuania.
Making the Property Tax Work. R. Bahl, J. Martinez-Vazquez and J. Youngman. Cambridge
MA, Lincoln Institute of Land Policy: 411-435.
Lithuania implemented a market value based real property tax in January 2006. As part of
this, there were separate tax treatments of land and buildings. This chapter identifies he
characteristics of the land tax and the necessary factors for its development. The authors
note that the land tax, as currently applied, does not promote efficient and sustainable
land use and that several drafts of legal acts to reform the tax have been proposed. In
particular, mass appraisal techniques are been adopted.
Alexander, E.R. (2012). "Institutional Design for Value Capture and a Case: The Tel-Aviv
Metropolitan Park." International Planning Studies 17(2): 163-177.
Two factors are critical for implementing strategic projects: institutional design and value
capture. A brief introduction to institutional design is followed by an exposition of value
capture: capturing the indirect benefits of public investments to fund the development and
operation of public projects. Institutional design answers the question: how to
institutionalize and effect value capture to enable a proposed project to be funded.
Alternative modes of value capture are associated with different forms of institutional
design, including levies, Special Districts and public–private partnerships. The case of the
Ayalon Metropolitan Park in Tel-Aviv, Israel, illustrates the need for strategic project
planning to include institutional design for value capture.
Alm, James (2011). Municipal Finance of Urban Infrastructure: Knowns and Unknowns. New
Orleans, LA, Tulane Economics Working Paper Series: 36.
This paper focuses on a limited number of dimensions of urban infrastructure finance.
These include: Finance for major infrastructure improvements in major economic
centers; finance for expansion of basic municipal services in secondary cities and towns;
and intergovernmental systems for financing investments with impacts beyond
jurisdictional limits. Also included is a review of current practices, an examination of
international evidence and case studies, and a look at areas in which knowledge gaps
remain. Included in the discussion are land value capture financing techniques.
Alm, James (2013). "Financing Urban Infrastructure: Knowns, Unknowns, and a Way
Forward." Journal of Economic Surveys 0(0): 1-33.
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This paper focuses on several dimensions of urban infrastructure finance: finance for
major infrastructure improvements in major economic centers, finance for expansion of
basic municipal services in secondary cities and towns, and intergovernmental systems
for financing investments with impacts beyond jurisdictional limits. It reviews what is
“known” about current practices in these areas, using international evidence and case
studies and summarizing international best practices. It also indicates areas in which
knowledge gaps remain. Some suggestions for a research agenda on financing urban
infrastructure are offered. Value capture is discussed.
Alpanda, Sami (2012). "Taxation, collateral use of land, and Japanese asset prices." Empirical
Economics 43(2): 819-850.
This complex article uses a neo-classical growth model to examine the increases and
decreases in land and stock process in Japan. The author attempts to examine changes in
these asset prices that occur because of land related taxation. The model does not
generate any significant change in land values if the government follows a land tax policy
that is countercyclical to land prices. Model is calibrated for Japan. Finds that if the
observed increase in productivity and decline in land taxes were expected to be
permanent, the model can account for the movements in asset prices.
Alter, Steven (2008). Moving Toward a Service Metaphor for Describing, Evaluating, and
Designing Systems. European Conference on Information Systems (ECIS) proceedings. Galway,
Ireland: 13.
This paper examines the use of information systems to examine a service minded view of
customer activities. In this context, it defines value capture in terms of the customer’s
experience of obtaining from the service as well as the producer’s experience in obtaining
value in exchange for the customer’s value. Recognizes that value capture can be
realized by both providers and customers. While private sector oriented, may have
implications for public sector.
Alterman, Rachelle (2011). Is capturing the “unearned increment” in land value still a viable
idea? A cross-national analysis. COBRA 2011: Proceedings of RICS Construction and Property
Conference, University of Salford, UK.
The author’s comparative research on the laws and practices in 13 advanced-economy
countries around the world is the basis of this paper, which addresses the degree to which
recapture of the “unearned increment” is a useful approach that policymakers should
adopt for financing or incentivizing the delivery of public services and affordable
housing. The author hypothesizes four preconditions for reasonably successful
application of indirect modes of value capture: Governments should have well-trained
professionals to negotiate with the developers or to develop preset formulas of impact
assessment; local government should conduct monitoring of fluctuations in land prices;
there should be enough transparency in negotiated exactions to help withstand legal
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challenges; and countries or local authorities known for high levels of corruption should
refrain from adopting value capture instruments with discretionary elements.
Alterman, Rachelle (2012). Land-Use Regulations and Property Values: The "Windfalls
Capture" Idea Revisited. The Oxford Handbook of Urban Economics and Planning. N. Brooks,
Kieran and G.-J. Knaap. New York, Oxford University Press: 755-788.
This chapter first discusses the implications of the property rights debate for policies
about land value changes. One view is that landowners should keep the full windfall as
part of the general rules of the economic game. Another view is that the owners of real
property owe society a part of the “unearned increment.” The chapter then discusses the
history of the notion of “unearned increment” with the specific idea of capturing
increments created by land use regulation. The chapter then discusses instruments for
direct value capture and argues that direct value capture can be divided into two subtypes:
capture of the unearned increment (in which the increase in value is not linked to a
specific government decision but rather to general economic or community trends) and
capture of betterment (in which the increase in value is directly caused by a specific
government decision, related to physical development). Betterment can be subdivided
into betterment arising from the provision of public infrastructure works and betterment
arising from land use regulation.
Altes, Willem K. Korthals (2009). "Taxing land for urban containment: Reflections on a Dutch
debate." Land Use Policy 26(2): 233-241.
This article examines the policy debate in the Netherlands concerning the introduction of
an open space tax—a tax that was ultimately not introduced. This debate on taxing took
place in a context in which four different objectives for a development tax were
identified: an open space tax to internalize welfare losses, a negative tax (value
capture), and a development tax for both steering development and for raising money.
An open space tax compensates for the loss of welfare when open spaces are turned into
buildings.
Amborski, David (2011). "The planning research agenda: after the 'Great Recession'." Town
Planning Review 82(4): v-xiii.
The purpose of this viewpoint is to identify situations where care and analysis are needed
so as to assess either the impacts of existing economic tools. Examples are provided to
demonstrate where economic tools are applied without due consideration of their current
impact and where policies are advocated without fully assessing the economic impact.
These cases include methods of financing infrastructure, the application of pricing rules
for user charges and the impacts of tools for encouraging public benefits when approving
new development.
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American, Public Transportation Association (2009). Forming Partnerships to Promote Transit-
Oriented Development and Joint Development. APTA. Washington D.C., American Public
Transportation Association: 25.
This Recommended Practice guides transit agencies for partnering with businesses and
community entities to promote transit-oriented development and joint development. It
notes these agencies may lack a thorough knowledge of real estate development
principles and a realistic understanding of value capture. Among the questions they
should address in the economic analysis is whether the land value and potential
development density and mix of uses will be adequate. In particular, transit agencies
should remember that value capture/creation can take many forms and that the meaning
of value capture may be different for different agencies and for public and private sector
partners.
Anderson, John E. (2009). "Financing Urban Development in China." The Chinese Economy
42(2): 48-62.
This article examines the revenue sources that Chinese local governments can use to
finance local public services. The article analyzes the potential impacts of fees and real
estate taxes on housing prices and patterns of development. Dynamic models are used.
Finds that market prices for land is not the norm. The paper identifies an option using
land value taxation, based on the socialist reality of collective land ownership. The
government could grant a land lease that is the equivalent to ownership and then apply a
tax on land values to generate revenue. Using the dynamic model, this article finds that
compared to the traditional property tax, there will be a speed up in development and
greater density will occur.
Anderson, John E. (2009). A Review of the Evidence. Land Value Taxation. R. F. Dye and R.
W. England. Cambridge MA, Lincoln Institute of Land Policy: 99-126.
This chapter summarizes the findings of 22 articles that attempt to determine the effects
of land value taxation. These articles have used computable general equilibrium models,
regression models, simulation models, interview with developer models, and comparison
models. They show mixed results. There are also measurement difficulties and city-
specific peculiarities. Concludes that there is a limited number of credible empirical
studies providing reliable but mixed evidence.
Anderson, John E. (2012). Collecting Land Value Through Public Land Leasing. Value Capture
and Land Policies. G. Ingram and Y.-H. Hong. Cambridge MA, Lincoln Institute of Land Policy:
123-144.
This chapter discusses public and private leasehold regimes and then applies this analysis
to China. Under a private regime, the landowner transfers the right to enjoy public
benefits and the property tax costs of the benefits to the lessee. Under a public regime,
the landowner is the government and both the right to enjoy the benefit of public
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improvements and the cost of those benefits is passed on to the lessee as part of the lease
rate charged by government. This chapter also shows the equivalence between a tax on
the value of property and the annual net rental income.
Ang, Geraldine and Virginie Marchal (2013). Mobilising Private Investment in Sustainable
Transport: The Case of Land-Based Passenger Transport Infrastructure. OECD Environment
Working Papers. Paris, France, Organization for Economic Co-operation and Development. 56:
81.
This report aims to advise governments from developed and developing countries on a
broad mix of instruments that they can use at the national or sub-national levels to scale-
up private investment in sustainable transport infrastructure. One instrument is land value
capture. Land value capture tools capture revenues from the indirect and proximity
benefits generated by transport infrastructure (e.g. increased real estate value) to finance
transport projects. They can be used as part of the capital financing mix to improve
projects’ profitability. They include: Tax increment financing and assessment districts,
development charges, impact fees and transportation utility fees, development charges,
impact fees and transportation utility fees, developer land sales, joint property
development, and land taxes. The use of land value capture tools is however hindered by
several challenges: (i) political challenges; (ii) administrative challenges; and (iii)
perverse incentives.
Austin, Patricia M. (2013). Housing Affordability in Auckland: looking behind the rhetoric. State
of Australian Cities Conference. K. Ruming, B. Randolph and N. Gurran. Sydney, NSW,
Australia, State of Australian Cities Research Network: 8.
Housing affordability is becoming the political issue in Auckland, New Zealand. From
the perspective of the central government, the issue is framed as a misuse of planning that
interferes in the workings of the property market place. From the perspective of Auckland
Council the issue is framed by a planning ethos favouring urban containment imperatives,
and the transport, environmental, economic and social costs of a sprawling city. This
paper unpacks the rhetoric around these two distinct approaches. It explains that the
Council has quietly dropped the two more innovative priority areas, value capture
through a betterment levy and inclusionary zoning. Whilst both decisions were supported
with brief technical reports, they may have been political judgment calls.
Austin, Patricia M., et al. (2013). "Planning and affordable housing in Australia, New Zealand
and England: common culture; different mechanisms." Journal of Housing and the Built
Environment: 13.
This paper compares approaches to planning and delivery of affordable housing across
England, Australia and New Zealand. The authors look at the extent to which affordable
housing policies have been directly linked to value capture and therefore a means of cross
subsidizing affordable housing without direct subsidy. This has been most directly
addressed in the English system which generates value by giving planning permission
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and then through contractual arrangements both transfers value and usually allocates land
to affordable housing while maintaining the project’s financial viability. But the nature
and extent of the affordable housing contribution is to an important degree dependent on
the buoyancy of the market—and it is not clear how successful the approach can be in the
light of the global financial crisis. In Australia and New Zealand the reliance on value
capture to support affordable housing provision is also far more limited, indirect, opaque
and largely unacknowledged.
Auzins, Armands, et al. (2013). Set of Fiscal Algorithms for Land-Use Management and
Decision-Making in the Territory of a Municipality. Proceedings of the 2013 International
Conference on Applied Mathematics and Computational Methods in Engineering, Rhodes Island,
Greece.
Tax revenues can be considered an important fiscal instrument in territory development
planning. Application of this instrument in land-use management decision-making may
prevent the so-called urban sprawl and reduce the risk of value decrease of inefficiently
used infrastructure and environmental resources. The present research focuses on the
application of the developed set of fiscal algorithms in land-use management and
decision-making at a municipal level. The set of fiscal algorithms has been developed
using the methodological framework for land-use efficiency assessment and the cost-
benefit analysis method. The main research results have been substantiated.
Ayalew, Hailu, et al. (n.d.). Financing Public Transit in the Greater Toronto and Hamilton Area.
Toronto, Ontario, Canada, Ryerson University, School of Urban and Regional Planning: 81.
Metrolinx has proposed $50 billion in investment in transportation infrastructure over the
next 25 years in the Greater Toronto and Hamilton Area (GTHA), therefore requiring
approximately $2 billion per year. This report looks at the many options for generating
that revenue. These options include increases to existing taxes, charges and fees, but also
new methods. There is a discussion of Land Value Capture including adequacy, stability,
equity, accountability, administrative and implementation ease, policy fit, stakeholder
analysis, and revenue estimates. The report concludes that considering the adequacy,
equity, accountability, ease of administration and policy fit, a land value capture tax is
not recommended for implementation, since proving the assessment increase due to
public investment is too difficult.
Bahl, Roy, et al., Eds. (2008). Making the Property Tax Work: Experiences in Developing and
Transitional Countries. Cambridge, Massachusetts, Lincoln Institute of Land Policy.
Consisting of 15 chapters, this edited book discusses the setting, the scope, fairness,
political issues, data collection and valuation, property rights and the Baltic experience in
property taxes and property tax reform. Several of the chapters, which are included in
this bibliography, refer to either land taxes or value capture.
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Bahl, Roy, et al. (2008). The Property Tax in Practice. Making the Property Tax Work. R. Bahl,
J. Martinez-Vazquez and J. Youngman. Cambridge MA, Lincoln Institute of Land Policy: 3-16.
This chapter introduces the volume on property taxes in developing countries. It
identifies the two sets of issues that are addressed: why hasn't the property tax worked
well in most developing and transitional countries and what can be done to make the
property tax a more relevant source of revenue in those countries. It identify the
underlying theme of most of the chapters: the property tax is in a perpetual transition and
that the transitions are moving in the right direction. The authors identify four
conclusions: during a transition, second-best solutions are acceptable; institutions matter
greatly; an accurate valuation of the tax base is the key to success; and with careful
design and administration, the property tax the property tax can be a key to strengthening
local government finance.
Bahl, Roy, et al., Eds. (2010). Challenging the Conventional Wisdom on the Property Tax.
Cambridge MA, Lincoln Institute of Land Policy.
This book addresses the role of the property tax in government finance, both in the US
and around the world. The chapters in the book address what people think they know
about the property tax (the conventional wisdom) and reviews the performance and
effects of the property tax in comparison to other review sources. There are some
chapters in the book that address land taxes in particular. These chapters are listed
separately in this bibliography.
Bahl, Roy and Sally Wallace (2008). Reforming the Property Tax in Developing Countries: A
New Approach. Atlanta, Georgia, International Studies Program, Georgia State University.
Working paper 08-19: 56.
This paper addresses property tax reform in developing countries. The unified property
tax brings together and restructures the traditional urban property tax, property transfer
taxes and various forms of land value increment taxes and could generate enough revenue
to justify the significant adminstative costs. The paper discusses both value capture and
land taxes.
Bahl, Roy and Sally Wallace (2010). A New Paradigm for Property Taxation in Developing
Countries. Challenging the Conventional Wisdom on the Property Tax. R. Bahl, J. Martinez-
Vazquez and J. Youngman. Cambridge MA, Lincoln Institute of Land Policy: 165-201.
This chapter starts with an economic model that explains why the tax is seldom used. It
continues with a description of the revenue performance of the tax in developing
countries as well as an explanation of the high administrative costs. It then examines
several types of property taxes, including betterment taxes. It concludes with a model of a
unified tax on immobile property.
10
Bahrevar, Elika (2013). Complex transportation project management: An in-depth look at
process integration, alternative financing, and sustainability. Construction Engineering and
Management. Ames, Iowa, Iowa State University. MSc: 157.
Master’s thesis that looks at value capture as an innovative finance technique. Claims
that special assessments on parcels that directly benefit from transportation improvements
are the most prominent value capture tool used in the United States. Notes that finance
complexity is an extra evaluative dimension of project management. Does ten case
studies of financing options for surface transportation projects in the United States
Bailey, Stephen J. (2011). Innovative Models for Funding Public Sector Infrastructure: UK Case
Study. Glasgow, Glasgow Caledonian University: 32.
This paper describes and analyzes alternative models for the financing of public sector
infrastructure, using experiences in the UK. The focus is on local government as the
primary provider of public sector infrastructure. The conclusions outline a practical
combination of financing models based on local and national taxes and charges that are
directly related to provision of public sector infrastructure. Funding models include taxes,
betterment taxes (value capture), infrastructure charges, and land value taxes.
Baker, Karl Phillip (2007). Incremental Densification Auctions: A Politically Viable Method of
Producing Infill Housing in Existing Single-family Neighborhoods. Urban Studies and Planning.
Cambridge, MA, Massachusetts Institute of Technology. Master in City Planning: 155.
This Master's thesis examines the problem of convincing homeowners to accept new
housing density in their neighborhoods. It approaches the question of removing
regulatory barriers from the perspective of devising a process that would effectively
reduce homeowner apprehension about the effects of densification. Devising a system
that explicitly regulates the pace of change and captures increases in land value
attributable to densification is found to be essential to overcoming homeowner concerns
about densification. It is proposed that local governments allocate densification rights
through public auctions.
Balakrishnan, Sai (2013). Land Conflicts and Cooperatives along Pune's Highways: Managing
India's Agrarian to Urban Transition. Architecture, Landscape Architecture and Urban Planning.
Cambridge, MA, Harvard University. Ph.D.: 169.
A central planning question that comes from restructuring land markets during an
agrarian to urban transition is how the land value increments can/should be allocated
among different institutional actors. Increases in land value are a complex mix of public
and private actions with the public action including public investment in infrastructure
and social services, changes in land use and land use regulations, and population growth
and economic development. The practical challenge with land value increments is how to
ascertain the proportion of the land value increment arising from public and private
actions respectively. The author conducts an in-depth analysis of restructured land
11
markets along the highways in the Pune region. He uses the framework of land value
capture to analyze these changes in land and land-based social relations.
Banzhaf, H. Spencer (2013). "On Fiscal Illusion in Local Public Finance: Re-examining
Ricardian Equivalence and the Renter Effect." National Tax Journal 66(3 (September)): 511-540.
Paper reevaluates fiscal illusion in local public finance. The Ricardian equivalence
theorem suggests that the financing of a public program using either taxation or debt
shouldn't affect outcomes, because debt is capitalized into property values. In contrast,
we show individuals may rationally prefer public debt if governments can borrow on
more favorable terms. Using data from U.S. open space referenda, we find that
households do prefer debt financing.
Banzhaf, H. Spencer and Nathan Lavery (2010). "Can the land tax help curb urban sprawl?
Evidence from growth patterns in Pennsylvania." Journal of Urban Economics 67(2): 268-306.
This article analyzes the effects of a land tax as applied in Pennsylvania. They find that
the implementation of split rate taxes increases the capital/labor ratio and this the primary
effect of the tax is in more housing units rather than bigger units. They interpret this to
mean that the implementation of the split-rate tax increases the number of housing units
and that these housing units are developed more densely.
Barbu, Daniela and Ana Maria Gramescu (2013). "Studies and researches regarding the urban
policies impact on land valuation." Aestimum (online): 169-181.
The authors develop a concept paper on the economic valuation of land. The authors
model develop an urban land sale procedure by optimizing the control of land
instruments. This study asks about the expected consequences of increasing the tax rate
on the land component of real estate while reducing the rate at which the improvement is
taxed. The first part briefly presents the consequences that land taxes are expected to
produce given our theoretical understanding of land markets. The consequences of
moving from a general property tax to a land value tax in the Toronto and Ottawa regions
are assessed by interviewing developers, planners and municipal finance officers.
Barrett, Jonathan and John Veal (2012). "Land Taxation: A New Zealand Perspective." eJournal
of Tax Research 10(3): 573-588.
This article discusses the history of land taxation in New Zealand and then applies
generally accepted tax criteria in this situation. It compares a land tax to a capital gains
tax and concludes that a national land tax has little to offer. However, it also argues that
as a radical alternative to an income tax, a national land tax deserves greater
consideration.
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Barua, Sepul (2012). Effects of taxes and climate policy instruments on harvesting of managed
forests and on tropical deforestation. Department of Forest Sciences. Hlsinki, Finland, University
of Helsinki. Ph.D.: 34.
This dissertation (part of which is included in an article in Forest Research) investigates
the effects of land value taxes on non-industrial private forests owners’ clear cutting and
thinning decisions. The key contribution of the dissertation is that land value taxes affect
only those forest-owners who value both timber production and forest amenity benefits.
Conversely, the tax does not affect the decisions of those forest owners who clearly
prefer either timber production or amenity benefits, which means that the tax is neutral.
The research uses a utility maximizing farmland model that incorporates land value taxes.
The numerical analysis shows that a voluntary tax regime with a lowered profit tax
combined with a land value tax may bring a Pareto improvement to a regime with a profit
tax and no land value tax. .
Barua, Sepul K., et al. (2010). "Effects of forest taxation and amenity preferences on
nonindustrial private forest owners." European Journal of Forest Research 129(2): 163-172.
This article analyzes the effects of both profit and land value taxes on the harvesting
decisions of private forest owners. Utilizing a model of utility maximization of the forest
owner who has amenity preferences for timber, it finds that with no amenity preference,
profit and land value taxes are neutral with respect to clear-cutting and thinning
decisions. It also finds that with small to medium amenity preferences, the total effect of
the profit tax on the short run timber supply is negative, which contrasts with the effects
of a land value tax. The analysis also finds that a combination of lowered profit tax rate
combined with a land value tax is a Pareto-improvement over a tax system that uses a
higher profit tax and no land value tax.
Basnet, Shanti (2012). Lease as an Alternative Approach for Access to Land for Infrastructure
Development. Geo-Information Science and Earth Observation. Enschded, the Netherlands,
University of Twente. MSc: 92.
This thesis considers leasing as a way for financing infrastructure. In particular, a land
readjustment technique is described. This is a technique in which land parcels are
assembled, projects are implemented and then land is given back to the previous owners,
but at a higher value. The paper describes part of this process as value capture. The
paper also describes indirect methods for land acquisition, some of which are indirect
value capture methods. Uses Nepal as a case study
Bassetto, Marco (2008). "Public Investment and Budget Rules for State vs. Local Governments."
Retrieved WP 2008-21, from http://ssrn.com/abstract=1311993.
The developed model features both endogenous and exogenous mobility across
jurisdictions so it is possible to evaluate whether the different degree of mobility at the
local vs. national level can justify different institutional restrictions. Preliminary results
13
show that pure land taxes have very beneficial incentive effects but can raise limited
amounts of revenues
Batt, H. William (2009). "Land Value Maps are Not New, But Their Utility Needs to be Re-
Discovered." International Journal of Transdisciplinary Research 4(1): 108-158.
Article argues that it is the increase in land values that are responsible for the rise in
property value. Notes that in Henry George’s time, land value maps were regarded as
sound practice and commonly used. Since that time, because land and improvements
have mostly been taxed at the same rate and because creating land value maps was
expensive, they have fallen into decline. But with GIS, these maps can be created easily,
cheaply and quickly. They could facilitate the wider implementation of land value
taxation and make feasible the implementation of the tax.
Batt, H. William (2012). "Development and Wealth: A Georgist Perspective." American Journal
of Economics and Sociology 71(4): 1004-1046.
This article analyzes the Georgist vision and economic development and notes that
implicit in this vision is that humanity owns the world in common and is entrusted with
its stewardship. The Georgist position is an expectation that those use the natural
resources the most should compensate others. This compensation is economic rent.
Since rents are socially rather than individually generated, they should be returned to
government and therefore the recovery of rent is the proper source of finance for
government services. Goes on to evaluate distributional effects and sprawl.
Behrens, Kristian, et al. (2010). The Henry George Theorem in A Second-Best World. CIRJE
Discussion paper: 30.
This article identifies conditions under which the “golden rule of local public finance”
holds in a second-best world: first, if and only if the excess burden from adding another
community (or changing community size) equals the fiscal surplus from doing so. The
article shows that the excess burden can be expressed by an extended Harberger formula.
Note that Discussion papers in this series are manuscripts in draft form and cannot be
reproduced or distributed without written consent of the author.
Behrens, Kristian and Yasusada Murata (2009). "City size and the Henry George Theorem under
monopolistic competition." Journal of Urban Economics 65(3): 228-235.
This article examines the equilibrium and optimal resource allocations in a monocentric
centrality that assumes monopolistic competition. The authors find that the Henry
George Theorem (HGT) does not hold in that model because aggregate fixed costs are
greater than aggregate land rents because of excess entry. Further, as the gap between
aggregate land rents and aggregate fixed costs increases when commuting costs fall, the
HGT is not likely to hold even approximately. Very technical.
14
Bell, David (2011). Council Tax Proposals in the Scottish Election 2011. Sterling Economics
Discussion Paper 2011-10. Sterling Scotland, University of Sterling: 17.
This is an analysis of the various property tax proposals of Scottish political parties prior
to the May 2011 election. It notes that the Green Party would replace both the Council
Tax and the Uniform Business Rates with a land value tax. It cites the Mirrlees Review
as endorsing this proposal, argues that a land value tax would not deter improvements to
properties, and that it would also be an opportunity to unify business and personal
property taxation. The paper also argues that a land value tax would deter individuals and
companies from hoarding land. Report concludes by saying that a land value tax should
be considered an option if the Scottish government revisits the issue of property taxation.
Bell, Michael E., et al. (2009). The Assessment Requirements for a Separate Tax on Land. Land
Value Taxation. R. F. Dye and R. W. England. Cambridge MA, Lincoln Institute of Land Policy:
171-194.
Accepting the premise that the appropriate value of land is the value of the site including
streets, sewers, lighting and the general state of the development of the area (although not
the structures on the specific site), and that land should be valued for tax purposes at its
highest and best use, the authors discuss some of the concerns that must be addressed for
accurate land valuation. In this chapter they examine how land values are actually
determined for tax purposes, whether the use of different methodologies matters, review
different approaches valuing land for tax purposes and then summarize several case
studies on how jurisdictions actually value land. They then do an in-depth case study of
Lucas County, Ohio.
Benedict, Robert (2009). The Reintroduction of Heritage Streetcars and the Related Effects of
Community Identity and Social Interaction with the Residents in Street car-Oriented
Developments. Environmental Design and Planning. Clemson, South Carolina, Clemson
University. Ph.D. in Environmental Design and Planning: 232.
This doctoral dissertation examines the effects of streetcar systems on a variety of
community oriented variables. In terms of financing, it notes that recently transit systems
are taking an active role with real estate development in joint ventures with the private
sector in order to capture the value created by the transit system. Argues that to capture
this value, planners need to achieve an appropriate mix of uses, densities and resolution
of tensions. Studies Little Rock and Memphis.
Bernstock, Penny (2013). "Tensions and contradictions in London’s inclusive housing legacy."
International Journal of Urban Sustainable Development 5(2): 154-171.
The success of London’s Olympic bid is often explained in terms of its uniqueness in
promising to deliver a lasting and inclusive legacy to a deprived part of East London.
This paper questions whether mega-events such as the Olympic Games are the best
vehicle for securing long-term housing benefits for deprived populations. The paper
15
argues that original plans overstated the potential housing legacy using this as a trump
card to displace existing populations and win support for the bid. Over time there has
been a weakening commitment to the provision of affordable housing legacy and social
transformation for existing communities. It is argues that the housing legacy plans were
essentially without foundation and based on the likelihood that private developers would
develop schemes and affordable housing would be extracted through planning gain. At
this point in the article, there is a discussion of value capture as a finance technique.
However, planning gain has become increasingly inadequate in this regard and this paper
raises more general questions about the inadequacy of existing tools in realizing value
from large-scale projects.
Berrisford, Stephen (2013). Getting Land Governance Right in Sub-Saharan Cities: More than
Land Administration. Trading Places: Accessing Land in African Cities. P. Harrison. South
Africa, African Minds for Urban LandMark: 73-90.
This chapter first discusses an idealized vision of how an urban land governance system
works. This is a vision that differs from the urban land governance reality, especially in
the cities of sub-Saharan Africa. Many of the proposed elements of urban legal reform
are premised on the assumptions that underpin this vision. This chapter proposes a
pragmatic approach to achieving fundamental urban legal reform over time. In this
chapter, urban land governance is a virtuous circle of land management to land value to
land based tax revenue (value capture) to investment in municipal capacity to land
management. This is where the circle breaks down.
Bhana, Kailash, et al. (2011). Land and Property Tax in Post-Apartheid South Africa. Innovative
Land and Property Taxation. R. Sietchiping: 128-146.
South Africa’s property taxation and land value capture programs to finance housing and
service land and infrastructure for the urban poor, are under-developed and insufficiently
mainstreamed. This chapter asserts that the limited reach of land management policy,
regulatory systems, and unregulated land and property markets contribute to inequality,
poverty, marginalization, and spatial segregation. Municipalities do not optimize land
value taxes and other land value capture mechanisms to finance pro-poor development.
The Development Action Group (DAG) found that South Africa has a tax system that
acts as a disincentive to the intensive use of land, encourages land speculation and
contributes to urban sprawl.
Big Look Task Force Consulting Team (2007). Part One Evaluation Report. The Big Look Task
Force on Oregon Land Use Planning. Eugene, Oregon, Oregon Department of Land
Conservation and Development: 89.
This report notes that many actions undertaken by government also have the effect of
increasing property values. Similar to the situation where there is a requirement for just
compensation for “taking” private property for a public facility, these examples involve
an increase in private property value as a result of a physical public improvement. In the
16
case of sewer and water services, the properties that benefit are generally the properties
that pay for the facilities, therefore it can be said that no windfall exists. Similarly, in the
case of the new interchange, if it is financed through a cost sharing arrangement with
benefiting property owners or through fees on new development, there may not be a
windfall. However, in the case of the regulatory action taken by the government, there is
no provision for allowing the public to capture some of the windfall increase in property
value. Remedies for these problems include value capture.
Binsted, Anne and Charlotte Brannigan (2008). Local Transport Funding Toolkit for Local
Authorities. Berkshire, UK, TRL Limited,.
This funding toolkit is aimed at transport planning professionals within local authorities
in the UK and attempts to .provide practitioners with an overview of funding barriers,
possible solutions and potential funding sources available to help finance and implement
a variety of local transport schemes. It is divided into four main sections, plus
appendices: an overview of the barriers to identifying and obtaining funding for transport
and land use schemes; answers key questions relating to overcoming these barriers;
identifies funding considerations by scheme type; discusses the role of partnerships as
mechanisms to obtain, and effectively utilize and manage funding.
Bird, Richard M. and Enid Slack (2010). Taxing Land and Property in Emerging Economies:
Raising Revenue...; and More? Toronto, Ontario, Canada, Munk Centre for International Studies,
University of Toronto: 46.
Examines the appropriate role played by taxes on land and real property. Notes that the
design and implementation of such taxes are likely to differ in different countries and to
change over time in any one country. Paper suggests that emerging countries should
focus primarily on developing a sound local property tax rather than attempting to
achieve broader land policy goals. The paper concludes by using the case of China to
stress the need to pay much more attention to the quite different rural and urban situations
in developing countries in designing and implementing land and property taxes.
Blanco, Andres G. (2012). "Discourses of land allocation and natural property rights: Land
entrepreneurialism and informal settlements in Bogotá, Colombia." Planning Theory 11(1): 20-
43.
Colombian law declares that the public through the municipal government can recapture
up to 50 percent of increases in land values created by regulations and public actions
using impact fees and land value capture taxes. In addition, the law states that developers
should provide the needed infrastructure or pay the equivalent as an exaction. However,
the implementation of this law has been very difficult. A survey conducted by the
Colombian Real Estate Association about the Law of Urban Development of 1997 shows
that 67 percent of developers think that it increased land values in Bogotá and 50 percent
believe that it increased housing prices even though academic research has shown that the
17
new regulations have decreased land values by 23.7 percent on average In addition, the
municipality has made an important progress updating the cadastral base.
Blatt, H. William (2011). Taxing land rents for urban livability and sustainability. Environmental
Taxation and Climate Change: Achieving Environmental Sustainability through Fiscal Policy. H.
Ashiabor, L. Kreiser, J. Sirisom and J. E. Milne. Northampton, MA, Edward Elgar Publishing,
2011. 10: 99-110.
This chapter discusses a tax on land rents as a form of environmental protection. It
argues that high land taxes encourage investment, development, and higher development
density which leads to walkability. Further argues that taxing land parcels according to
their market value fosters land use patterns that best suit the demands of the community
as a whole. Then descries economic rent as when a resource that has a market price not
created by human hands, and thus resource rent can be understood as socially created
wealth and be construed as capitalized transportation costs. Claims that all taxes come out
of rent.
Bloch, Jonathan Adam (2007). Interests Great and Petty: Japan’s Nonperforming Loans Debates,
1991-1998. Department of Government. Austin, Texas, University of Texas. Ph.D.: 314.
A section of this dissertation analyzes the Japanese land value tax and its effects on land
prices in Japan during the early 1990's.
Bochner, Brian S. and Beverly J. Storey (2011). Performance Measures: Technical
Memorandum. Designing Walkable Urban Thoroughfares: A Context Sensitive Approach –
Phase III Outreach Materials (Task 5), Texas Transportation Institute: 63.
This memorandum provides a summary of performance measurement to thoroughfare
design. It proposes a structure for evaluating urban thoroughfare planning and design
processes as well as the designs and outcomes. Examples of performance measures are
included. It concludes with a proposed scope of work to complete a guide for using
performance measures to assess the process and outcomes of urban thoroughfares
designed using context sensitive solutions. It includes several performance
measurements using value that is susceptible for value capture techniques.
Booth, Philip A. (2012). The Unearned Increment: Property and the Capture of Betterment
Value in Britain and France. Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong.
Cambridge MA, Lincoln Institute of Land Policy: 74-93.
Through an examination of the history of land value capture in the United Kingdom, this
chapter explores how the nature of land property as articulated by law has affected the
process of land value capture. The chapter also contrasts the British experience with the
French experience. The approach is historical.
18
Bourassa, Steven C. (2009). The Political Economy of Land Value Taxation. Land Value
Taxation. R. F. Dye and R. W. England. Cambridge MA, Lincoln Institute of Land Policy: 195-
209.
The author addresses the question of "if land value taxation is such a good idea, why
haven't more jurisdictions adopted it." He asserts that the answer involves several issues,
including the taxation of unrealized capital gains, land value assessments and rate
settings, too much development, winners and losers, and lack of understanding. The
author addresses these points and determines that while land value taxation is more
difficult to implement than the standard property tax, the additional effort required may
well worth it.
Bourassa, Steven C. (2009). The U.S. Experience. Land Value Taxation. R. F. Dye and R. W.
England. Cambridge MA, Lincoln Institute of Land Policy: 11-25.
This chapter reviews the adoption of land value taxation in U.S. jurisdictions, considers
why the tax has been discontinued in several of the jurisdictions, and discusses the
ongoing support for land value taxation in other locations, including efforts to adopt it in
Philadelphia.
Bourassa, Steven C. and Chien-Wen Peng (2011). "Why Is Taiwan’s Homeownership Rate So
High?" Urban Studies 48(13): 2887-2904.
This is a study on why homeownership rates are so high in Taiwan (approximately 88
percent). Concludes that the high rate of ownership primarily is the result of the low user
cost of owner-occupied housing. The article notes that the nominal land value tax rate for
owner occupied housing is one-fifth of that rate that is normally applied to other land
uses. The article also notes that homeowners when they sell their houses, pay a tax on the
appreciation of assessed land value. However, this tax is low. The article recommends
that increasing the portion of the property tax applied to land.
Bowman, John H. and Michael E. Bell (2008). "Distributional Consequences of Converting the
Property Tax to a Land Value Tax: Replication and Extension of England and Zhao." National
Tax Journal 61(4): 593-607.
England and Zhao (2005, NTJ) report that changing the Dover, New Hampshire, property
tax to one taxing land more heavily than improvements would increase the tax on single-
family residences and changes across residences would be regressive. We replicate their
analysis for Roanoke, Virginia, with results opposite those for Dover. We extend the
Roanoke analysis beyond England and Zhao by linking property tax changes to income
and poverty data for census tracts; the resulting tax change would benefit most those
areas with lowest incomes and highest poverty rates. Thus, both approaches for Roanoke
show initial tax burden changes to be progressive.
19
Brauer, Brian (2011). Introducing Access-Based Rate Variation to the Transportation Property
Tax in Metro Vancouver. School of Public Policy. Burnaby, BC, Canada, Simon Fraser
University. Master of Public Policy: 62.
This MPP thesis finds that access to public transit in Vancouver varies widely although
the system is financed by a uniform property tax. The author finds that transit benefits
are incorporated into property values under some conditions, but not under others. The
author suggests that there is a case for varying the property tax rate among municipalities
and proposes value capture financing policies such that those areas that accrue future
benefits from transit expansion commit to a greater proportion of costs required to fund
those expansions. He then examines land value taxes, area benefiting taxes and tax
increment financing. Concludes that the land value tax would be administratively
complex and harmful to vertical equity and ultimately rejects it in favor of the other two
alternatives.
Braun, Erin and Aryn Shounce (2011). Transportation Infrastructure. Policy Choices for
Indiana's Future. Bloomington, IN, Indiana University Public Policy Institute: 16.
This report takes a wide-ranging look at Indiana’s transportation infrastructure needs
through five sections. Section 1 provides an overview through a national lens. Section 2
explores some of the recommended actions states can take: adopting fix-it-first policies
and prioritizing investments through State Infrastructure Banks. This section includes
value capture as a mechanism for funding an infrastructure bank. Section 3 details the
status of Indiana’s infrastructure. Section 4 investigates the link between investing in
transportation and economic development, and Section 5 discusses various methods for
financing transportation, with a brief description of the commission Indiana recently
established to look into the issue.
Brennan, Travis Martay (2008). "Redefining the American Coastline: Can the Government
Withdraw Basic Services from the Coast and Avoid Takings Claims Comment." Ocean and
Coastal Law Journal 14(1): 101-142.
This article might be an example of a reverse value capture argument, applied to coastal
zones. Today, local governments benefit from coastal development because it expands
the local tax base and increases tourism and employment. Private landowners benefit
from development through increased property values. With high property values and tax
revenues at stake, coastal communities have strong incentives to protect property. This
Comment asserts that one approach governments may use to minimize coastal costs is to
withdraw basic services like utilities and road repair projects from coastal communities.
The question then is if the government refused to rebuild a coastal community's
infrastructure would property owners be entitled to compensation for a "taking" of their
property under either the Fifth or Fourteenth Amendments? This Comment concludes
that the government can change its coastal community public policy without
compensating landowners.
20
Brown-Luthango, Mercy (2007). Voices of the Poor: Literature Review. Cape Town, South
Africa, Development Action Group: 39.
This literature review attempts to capture some of the most important issues with regard
to the question of the poor’s access to urban land. There is a section on capturing
unearned value to assist markets to work for the poor. These unearned increases in land
value are brought about by government interventions such as changes in land use
regulations, provision of infrastructure to a parcel of land, and growth of the population
which creates a demand for land thereby increasing the price of land. It is thus only fair
that the community as a whole shares in the increase in land value. The utilization of
mechanisms to capture unearned land value can provide additional resources. These value
capture mechanisms can also assist in addressing unfair land market practices such as
speculation. The three value capture mechanisms examined in this review are the land
value tax, land banking and land pooling/land readjustment.
Brown-Luthango, Mercy (2010). "Access to Land for the Urban Poor--Policy Proposals for
South African Cities." Urban Forum 21: 123-138.
The issue of land is a critical one in post-Apartheid South Africa. The operation of the
urban land market has been identified as a significant obstacle preventing the urban poor
from accessing affordable land. A Brazilian case study provides an example of a more
progressive approach as it combines social policy and legal reform to regulate the use of
urban and to ensure that land fulfills its social function. This paper discusses the
Brazilian case and argues that the progressive taxation of vacant land in cities could be a
potentially valuable policy instrument in South African cities.
Brown-Luthango, Mercy (2011). "Capturing Land Value Increment to Finance Infrastructure--
Possibilities for South Africa." Urban Forum 22: 37-52.
This paper argues that in light of the South African government's current infrastructure
drive and the significant amount of public resources being spent on transport
infrastructure upgrades, it is an opportune time to consider the impact of transport
infrastructure investment in particular on land value and how this value can be captured
to finance the provision of infrastructure at local level.
Brugmann, Jeb (2012). "Financing the resilient city." Environment and Urbanization 24(1): 215-
232.
This paper presents a strategy for scaling climate change adaptation within urban areas.
The strategy specifically focuses on the requirements for mobilizing large amounts of
capital for adaptation (including value capture techniques) and other urban risk reduction
above and beyond the amounts that will likely be mobilized through new international
adaptation funds. The approach shifts the adaptation focus from risk reduction as a
primary end in itself to a broader development focus on financing the performance of
21
urban assets, areas and/or systems. This emphasis is elaborated through the concept of
resilience.
Buckman, Stephen Thomas (2013). Canal Oriented Development as an Urban Waterfront
Development Mechanism. School of Geographical Sciences and Urban Planning. Tempe, AZ,
Arizona State University. Ph.D.: 146.
This dissertation focuses on canal oriented development (COD), which is based on transit
oriented development guidelines. One of these guidelines is a value capture/financial
return. This means that the COD must create economic and financial value for all
parties—developers, households and the community. These values would vary.
Somewhat confusing on value gains and value capture.
Calavita, Nico, et al. Inclusionary Housing in Spain: 50.
This is an unpublished first draft of a detailed discussion of financing inclusionary
housing in Spain through the process of value recapture (plusvalias). It has a particular
emphasis on instruments utilized to recapture increments in land value. Detailed case
studies of policies in Catalonia, Barcelona, and Galicia regions are presented. Paper
argues that the Spanish Constitution mandates some sort of recapture of increments.
Inclusionary housing is one of the mechanisms for this recapture. Another implication is
that land can now be expropriated at existing use value.
Carlson, Benny (2011). "Gustav Cassel: In Defense of Private Property Rights." Cato Journal
31(2): 305-313.
This article discusses Gustav Cassel’s advocacy of an incremental land value tax in the
early 1900’s. It is also available as an SSRN paper http://ssrn.com/abstract=2253488
Cervero, Robert and Chang Deok Kang (2011). "Bus Rapid Transit Impacts on Land Uses and
Land Values in Seoul, Korea." Transport Policy 18(1): 102-116.
Bus rapid transit (BRT) has gained popularity as a cost-effective alternative to urban rail
investments; however, relatively little is known about its impacts on land-use changes
and land values. This paper examines the land-market effects of converting regular bus
operations to median-lane bus services in Seoul, Korea. Multilevel models reveal BRT
improvements prompted property owners to convert single-family residences to higher
density apartments and condominiums. Land price premiums of up to 10% were
estimated for residences within 300 meters of BRT stops and more than 25% for retail
and other non-residential uses over a smaller impact zone of 150 meters. The research
findings underscore the importance of introducing zoning and other land regulatory
changes prior to the initiation of BRT improvements as well as applying value-capture
tools to help finance investments and redress inequities.
22
Cervero, Robert and Jin Murakami (2009). "Rail and Property Development in Hong Kong:
Experiences and Extensions." Urban Studies 46(10): 2019-2043.
Hong Kong has aggressively pursued value capture to finance railway infrastructure
through its ‘Rail + Property’ development program (R+P), with now more than half of all
income to the railway operators coming from property development. Most R+P projects
focus on housing although all have some commercial development. With an increased
emphasis on pedestrian quality, this research shows increased ridership and housing
prices. An R+P station with a transit-oriented design averages 35,000 additional weekday
passengers and housing price premiums in the range of 5–30 per cent were found. The
article suggests that Hong Kong’s R+P model is well suited for financing rail
infrastructure and in the rapidly growing cities of mainland China.
Chae, Yumi (2012). The Impact of Light Rail Transit on Residential Value: Empirical Analysis
of DART Green Line in Dallas. Community and Regional Planning. Austin, Texas, University of
Texas. MSc: 43.
Huge capital costs remain an obstacle to the construction of a new light rail system. For
this reason, cities in the planning phases of LRT want to use value capture tools to
finance transit construction and operation. In theory, any improvement in a transportation
structure that increases accessibility and reduces transportation cost can be capitalized
into property values in an area. In turn, governments levy taxes on a portion of the
additional value of adjacent properties. This study, however, aims to empirically examine
whether value capture is possible in the recession when property and land values continue
to decrease. The study uses the case of the DART Green Line (in Austin, Texas), which
started to run in 2009 just after a financial crisis in the U.S. The 5745 residential parcels
are analyzed with using a hedonic price model in order to detect the Green Line’s
influence on residential values before and after the recession.
Chalermpong, Saksith (2008). "Rail Transit and Residential Land Use in Developing Countries:
Hedonic Study of Residential Property Prices in Bangkok, Thailand." Transportation Research
Record: Journal of the Transportation Research Board 2038: 111-119.
In this paper past studies on the effect of transit improvements on property prices in
developing countries are reviewed, and the hedonic models are developed to examine this
relationship in Bangkok, Thailand. Spatial regression models are estimated with data on
multifamily residential properties near the Bangkok transit system's stations. Estimation
results show that the premium of transit accessibility is approximately $10 for every
meter closer to a station, and the price elasticity with respect to the distance to the nearest
station is roughly -0.09. The substantial premium of transit accessibility implies that there
is potential for the use of value capture policies for investments in Bangkok's transit
system.
Chang, Yun-chien (2012). "Self-Assessment of Takings Compensation: An Empirical Study."
Journal of Law, Economics, & Organization 28(2): 265-285.
23
This is an empirical study examining ex-ante self-assessment of property value of land in
Taiwan from 1954-1977. Study finds that most landowners reported self-assessments at
below market value mainly because the condemnation probabilities were much lower
than the property tax rates. A land value increment tax (a variety of value capture) is also
discussed. Article provides details of the tax, including implementation and enforcement.
Chapman, Jeffrey I. (2008). "The Fiscalization of Land Use: The Increasing Role of Innovative
Revenue Raising Instruments to Finance Public Infrastructure." Public Works Management and
Policy 12(4): 551-567.
This article examines different ways of funding public infrastructure. The land value tax
is one of the 17 ways discussed.
Chapman, Jeffrey I. and Evgenia Gorina (2012). "Municipal Fiscal Stress and the Use of Tax
Increment Financing." Town Planning Review 83(2): 195-212.
This paper closely examines the use of tax increment financing (TIF) as a type of land
value capture. After describing the steps in implementing a TIF district, the article
examines the effects of its use, including its impact on redevelopment, new economic
development, and on other jurisdictions.
Chapman, Jeffrey I., et al. (2009). "Implications of a Land Value Tax with Error in Assessed
Values." Land Economics 85(4): 576-586.
Using the Mills’ model, this article demonstrates that even if there are errors in the
assessment of land, a land value tax, in the worst case, will have no more distortion
effects of a single rate property tax. The article also demonstrates that levying taxes
based on land values assessed with error is equivalent to using one tax rate on the true
value of land and a different tax rate on capital.
Charlton, Sarah (2008). The State of Land Use Management in South Africa. Inequality and
Economic Marginalization. Pretoria, South Africa, Trade and Industrial Policy Strategies (TIPS):
40.
In this paper, the background section briefly locates land use management (LUM) within
broader land and planning activities. The paper then describes the rationality and nature
of the current LUM approach in South Africa. The third section discusses a number of
key issues and elaborates on the consequences of these issues. Among its findings is that
the City of Johannesburg (CoJ) has made some efforts to positively influence the
property market, by highlighting development opportunities in strategic areas and
offering financial incentives. This has occurred through land identification, packaging
and planning at Gautrain stations, strategic projects managed by the Johannesburg
Development Agency, as well as through the tax incentives offered in the Urban
Development Zones. Property development in these areas, however, has largely targeted
24
its attention on higher-income residents rather than the poor. Generally, the CoJ has been
slow to consider innovative ways of obtaining value from developments for the higher
end of the market.
Chen, Xueming (2012). "Managing Transportation Financing in an Innovative Way."
Management Research and Practice 4(3): 5-17.
Because traditional transportation financing is no longer able to meet new transportation
financing requirements, an innovative transportation financing program is called for.
Value capture is one of these techniques. Innovative funding sources will contribute more
to delivering transportation projects, but traditional funding sources will remain dominant
in the years to come due to their stable revenue sources.
Cheshire, Paul, et al. (2012). Links Between Planning and Economic Performance: Evidence
Note for LSE Growth Commission. London, England, London School of Economics and
Political Science, Spatial Economics Research Centre: 18.
The English Government has been seeking to reform its planning rules. The current
system involves: A hierarchy of planning policies Section 106 (S106) as the main means
of local value capture, complemented in 2010 by the Community Infrastructure Levy.
The report also discusses the main elements of the National Planning Policy Framework
(NPPF), published in March 2012. In parallel with the NPPF, the Government has also
introduced: a reformed Community Infrastructure Levy as the main means of value
capture, while limiting use of S106; financial incentives for new housing and for
commercial development; and a Localism Bill and wider proposals for reforming local
government finance.
Childress, Malcolm D., et al. (2009). Agricultural Land Tax, Land-Use Intensification, Local
Development, and Land Market Reform. Agricultural Land Redistribution: Toward Greater
Consensus. H. P. Binswanger-Mkhize, C. Bourguignon, R. Johannes and E. v. d. Brink.
Washington D.C., The World Bank: 311-333.
Describes the case for taxing the unimproved value of agricultural land and concludes
that it is strong as long as it is not the only tax used. Argues that it takes away one of the
disadvantages that small farmers have vis a vis large farmers, but will not remove all of
them. Also discusses administrative problems and concludes that they are solvable.
Compares South Africa (which has a combined property tax) and Namibia which taxes
only the value of unimproved rural land and concludes that Namibia has done remarkable
well.
Cho, Seong-Hoon, et al. (2013). "Impact of a Two-Rate Property Tax on Residential Densities."
American Journal of Agricultural Economics 95(3): 685-704.
This article simulates the impact of the effects of a move to a two-rate property tax on
residential density in Nashville-Davidson County, Tennessee. It finds that when land
25
taxes are proportionately higher than taxes on structures, there are marked density
increases.
Cho, Seong-Hoon, et al. (2011). "Measuring the Effects of a Land Value Tax on Land
Development." Applied Spatial Analysis and Policy 4(1): 45-64.
This article evaluates using a land tax as a policy tool to moderate urban sprawl. It
develops a development model to evaluate a hypothesis that a land value tax encourages
more development closer to areas of existing development that an observed property tax
system model suggests that land value taxation can be used to design compact
development strategies. Model is applied to Nashville Tennessee.
Cho, Seong-Hoon, et al. (2010). "Forecasting Open Space with a Two-Rate Property Tax." Land
Economics 86(2): 263-280.
This article examines the potential use of a two rate property ax, with different tax rates
on land and structures as a vehicle to promote open space conservation. Uses a general
equilibrium model with Tennessee parameters. With a revenue neutral tax change the
authors found that this change might be useful for mitigating the potential negative
effects of sprawl by encouraging open space preservation. Uses a spatial autoregressive
model.
Clark, Greg and Debra Mountford (2007). Investment Strategies and Financial Tools for Local
Development. Paris France, OECD.
This book provides a comprehensive overview of financial instruments and investment
strategies being implemented throughout OECD Member and non-Member countries. It
highlights effective tools, explores the roles and responsibilities of governments, public
agencies and inter-governmental organizations. The lessons from this book are essential
reading for policy makers, practitioners and all actors involved in delivering local
development. Chapter 2 is an extensive review of value added literature with
international examples.
Cleveland, Mary M. (2012). "The Economics of Henry George: A Review Essay." American
Journal of Economics and Sociology 71(2): 498-511.
This is an in-depth review of Phillip J. Bryson"s book: The Economics of Henry George:
History's Rehabilitation of America's Greatest Early Economist (2011).
Cnossen, Subren (2011). "A Proposal to Improve the VAT Treatment of Housing in the
European Union." Fiscal Studies 32(4): 455-481.
This article proposes to improve the VAT treatment of housing in the EU. It proposes the
taxation of the difference between the selling and purchase process, net of subsequent
renovations—which are assumed to be capitalized into the property value. Notes that the
26
VATs in various EU member states can be improved by limiting the exemption for all
used immobile property to housing and then by taxing land and applying the standard rate
more widely. The article goes into excruciating detail how this should be administered.
Cocconcelli, Luca and Francesca Romana Medda (2013). "Boom and bust in the Estonian real
estate market and the role of land tax as a buffer." Land Use Policy 30(1): 392-400.
This article examines the Estonian economy which has been characterized by increases in
real estate prices, which were possibly speculative. In 1993, a land value tax was
implemented, but estimated only in 2001. This article attempts to discover if a more
rigorous implementation of the land tax would have lessened speculative behavior. The
authors conclude that it would have.
Cocconcelli, Luca and Francesca Romana Medda (n.d.). The Estonian Speculative Real Estate
Market: The boom and bust cycle. London., UK, Center for Transport Studies, UCL: 22.
Analyzing the Estonian economy, this paper finds that it was highly leveraged and
characterized by increases in real estate prices, having the pattern of a speculative bubble.
The authors note that a land value tax was implemented in Estonia in 1993 and after 1996
it was an entirely local tax. They find that if land is evaluated each year, the tax is
capitalized with a higher rate than in the case of the single evaluation model. They
conclude that if the land tax had been correctly implemented, it would have been a
valuable mechanism against the real estate speculation bubble.
Cochrane, Allan, et al. (2013). "Developing a sub-regional growth strategy: Reflections on
recent English experience." Local Economy 28(7-8): 786-800.
Case studies for new towns planning in the United Kingdom. In at least one of the towns,
the governance committee was to use the surplus tax revenues generated from the
increased value of land to help provide the infrastructure necessary for further
development. At the heart of the policy was that community sustainability would occur
because of rising land values. Receipts would come in that would fund physical
infrastructure and social facilities. The article finds that developers don't like affordable
housing because it reduces land value. Yet the developers resisted providing the
infrastructure that increased land values would have financed.
Coe, Richard D. (2009). The Legal Framework in the United States. Land Value Taxation. R. F.
Dye and R. W. England. Cambridge MA, Lincoln Institute of Land Policy: 129-170.
This chapter address the legal issues the implementation of a land tax in the United States
would face. It notes that property taxes are governed primarily by state law, which varies
from state to state. The chapter focuses on state constitutional provisions with
accompanying case laws. It concludes that a land tax as well as differential valuation of
land, would run into serious legal challenges in a large number of jurisdictions, typically
in the categories of uniformity, equality, and proportionality provisions. May very well
27
need state constitutional amendments. Includes a table of cases as well as a table listing
state restrictions.
Cohen, Jeffrey P., et al. (2013). Estimation of Airport Infrastructure Capitalization for Land
Value Capture Purposes: An Analysis of Denver and Atlanta. Cambridge, MA, Lincoln Institute
of Land Policy. WP13JC2: 36.
Airports likely affect the value of many resources, including land. We explore the
relationship between airport infrastructure and residential land prices in Denver and
Atlanta. We use an innovative approach—Local Polynomial Regressions—to separate the
value of land from the value of structures at each locally sold property address, and then
estimate the impacts of changes in airport infrastructure improvements on land values. In
Denver, we find investments in airfields, parking, and intermodal transportation lead to
higher land values in the short-run and long-run, while investments in terminals generally
have no significant impact or a negative impact (due to congestion) on land values. Due
in part to less instability in land prices over the period 2003–2010, these results suggest
Denver appears to be the stronger candidate for land value capture than Atlanta.
Cohen, Jeffrey P., et al. (2009). "Auctions as a Vehicle to Reduce Airport Delay and Achieve
Value Capture." Federal Reserve Bank of St. Louis, Review 91(6): 569-587.
Congestion at airports imposes large costs on airlines and their passengers. This paper
explores how a specific market-based proposal by the Federal Aviation Administration
(FAA), which includes the use of auctions to determine the right to arrive or depart in a
specific time interval at airports in the New York City area, might be used as part of a
strategy to mitigate delays and congestion. The basics of the proposed auction process,
known as a combinatorial auction, and value capture are explained.
Coleman, Andrew and Arthur Grimes (2010). "Betterment taxes, capital gains and benefit cost
ratios." Economics Letters 109(1): 54-56.
Provided that independent land valuations are performed on all properties, a betterment
tax can be levied to fund public infrastructure and amenity investments under certain
circumstances. A flat rate land tax is one possibility, however, that option taxes pre-
investment land values unrelated to the specific investment. An alternative is an
incremental land tax that taxes only the uplift in values due to the new infrastructure or
amenity. Article shows that under certain conditions, a project can be fully financed from
the incremental betterment tax while leaving some value uplift available for local
landowners. The, use of a land tax has favorable efficiency properties relative to other
taxation or funding options. A capital gains tax is another option and the authors
demonstrate the equivalence of the two taxes in terms of raising revenues
Coleman, Andrew and Arthur Grimes (2010). "Fiscal, Distributional and Efficiency Impacts of
Land and Property Taxes." New Zealand Economic Papers 44(2): 179-199.
28
There is little international (or New Zealand) evidence regarding the distributional
impacts of land and property taxes. Nor is there much New Zealand evidence on their
potential fiscal implications or about the taxes' impacts on asset values and debt
positions. Using both partial and general equilibrium models, the authors explore impacts
that may arise from the imposition of land and property taxes in New Zealand.
Collins, Michael L and Adam Larragy (2011). Implementing a Site Value Tax for Ireland.
Dublin Economic Workshop. Kenmare. E. R. Unit: 31.
This paper analyzes the feasibility of a Site Value Tax (which is a Land Value tax) in
Ireland. It notes the practical difficulties associated with site value taxes and then
submits proposals for implementation and administration which are designed to
overcome the difficulties and introduce a credible, fair and reliable site value tax. Some
empirical work using the land registry data base of Ireland.
Condon, Patrick M. and Kent Mullinix (2009). Agriculture on the Edge. Vancouver, BC,
University of British Colombia: 12.
Currently, Agricultural Land Reserve designated lands in southwest British Columbia are
under threat from urban expansion and other non-agricultural uses. The paper identifies
here are five factors for this. It then proposes solutions some of which are based on value
added concept, with value added coming from rezoning of some of the land.
Condon, Patrick M., et al. (2010). "Agriculture on the edge: strategies to abate urban
encroachment onto agricultural lands by promoting viable human-scale agriculture as an integral
element of urbanization." International Journal of Agricultural Sustainability 8(1-2): 104-115.
In the Greater Vancouver region (Canada) tensions exist where urbanization encroaches
onto agricultural land. A recently issued white paper proffered ideas to stimulate
discussion on land-use plans and public policies to encourage and enhance agriculture
while accommodating a doubling of the region's population. It evoked a visceral
response from local and regional politicians and planners. One tool suggested to
ameliorate some of the problems is the use of value capture to generate endowment for
Community Trust Farming.
Cook, Chris (2011). Equity Partnerships: A Better, Fairer Approach to Developing Land.
Fleeing Vesuvius: Overcoming the Risks of Economic and Environmental Collapse. G. Fallon
and R. Douthwaite, New Society Publishers: 86-104.
Relates equity partnerships to LLPs and then to value capture financing. Gives numerical
example of how this works.
Costa, Fernando, et al. (2008). Smart Growth. A Guide to Urban Planning in Texas
Communities. Austin, TX, Texas Educational foundation: 253-279.
29
This chapter argues that holding costs of vacant land are low under a single-rate property
tax system and that the land portion of a split rate tax helps to discourage speculation
because the higher land tax increases these holding costs. The split rate system
encourages landowners to develop property to take advantage of existing public
infrastructure. Once land speculation is reduced, then land values are largely determined
by the proximity of public infrastructure. (note: assumes existing public infrastructure so
this is not a value capture argument.)
Coulson, N. Edward and Herman Li (2010). "The effect of risk on the effect of a land tax: A
simulation." Regional Science and Urban Economics 40: 530-537.
This article investigates, through simulation, the argument that taxation reduces risk and
this can increase the demand for the taxed commodity. If this is true, than a land tax may
not be completely neutral. Simulating the risk impacts of a land tax, they find that land
has a much higher return but much more risk than housing; many households receive
positive utility from the extra risk associated with housing, and thus, the aggregate effect
of the risk adjustments are minimal.
Crook, Tony (A.D.H.) and Sarah Monk (2011). "Planning Gains, Providing Homes." Housing
Studies 26(7-8): 997-1018.
Planning gain is a way for Local Planning Authorities (LPAs) to extract development
value from landowners via developers and of using the proceeds for local needs. It is thus
synonymous with taxing betterment. This paper examines the theoretical and policy
underpinnings of planning gain. It describes the growth in the number of new affordable,
including intermediate, homes delivered through planning gain, the variations between
planning authorities in the incidence of planning gain and the value of the contributions
developers make.
Culp, Susan and Dan Hunting (2012). Experimenting with Land Value Capture on Western State
Trust Land. Value Capture and Land Policy. G. K. Ingram and Y.-H. Hong. Cambridge MA,
Lincoln Institute of Land Policy: 405-432.
After describing state land trusts in the west and explaining the process and limitations to
gaining how value, the authors note that value capture on state trust land has the potential
to generate two benefits: increased revenue for the public beneficiaries of the trust and
the value of orderly development to local jurisdictions. The chapter explores both the
opportunities and limitations of value capture on state trust land, describes recent
experiments to capture higher value from trust land and suggests reforms that would
enable greater returns to trust beneficiaries. It also describes some innovative approaches
through a discussion of case studies.
Dachary-Bernard, Jeanne, et al. (2011). "L'impact de la littoralisation sur les marches fonciers:
Une approache comparative des cotes basque et charentaise." Economie et Statistique 444-445:
127-154.
30
This is entirely in French. Google Scholar indicates that it has a section on using a value
capture tax for financing beach nourishment projects.
Dai, Danielle Yu-chen (2011). Analyzing Private Investment in the Chicago Transit Authority:
The Potential for Joint Development. Transport Chicago Conference. Chicago: 24.
This paper reviews the challenges facing mass transit today and the strategies that can
address these challenges. Then, from an extensive literature review and interviews with
transit officials, the paper identifies the benefits and challenges to joint development to
illustrate the opportunities and obstacles of implementing these type of projects. The
centerpiece of the research is a case study of a recent joint development project in
Chicago. The paper identifies funding as the biggest challenge facing mass transit
systems and identifies value capture as a funding tool than can be used. Value capture
questions are in interview guide for transit officials
Damron, Aubrie Dianne (2013). Surface Parking Lots: Killers of Vibrancy and Local Culture in
Downtowns. Architecture. Knoxville, Tennessee, University of Tennessee. Master of
Architecture: 63.
This Master’s thesis address the problem of parking lot density in many downtowns. It
proposes a re-engineering of the current property tax structure into a land value tax. It
hypothesizes that a land value tax will free the land and allow additional building
construction and increase density, as well as generating revenue. It then simulates a land
value tax in downtown Knoxville, TN.
Danson, Mike, et al. (2013). Investing in the Good Society: Five Questions on Tax and the
Common Weal. R. Murphy. Scotland, The Jimmy Reid Foundation: 34.
In this report, discussing Scotland, one of the questions addressed is whether there is a
realistic possibility of generating new tax income from wealth, land and property taxes.
The report argues that a land value tax is fair and efficient, and can be used to redistribute
socially created wealth (which results from increase in land values) away from landlords
who “unfairly” appropriate wealth created by others. The report states that base land
values come from the community through infrastructure, utilities and other external
public and private developments. Thus, a land value tax is more accurately described as
the recovery of economic rent. The report claims that land value taxes are not popular
because landowners are powerful political voices that lobby against a new tax that
imposes a windfall loss on them. Concludes that there is also a strong case, in the longer
term, for a shift from property taxes to land value taxes and where possible from taxes on
income to taxes on wealth.
Davey, Brian (2013). De-Growth in Slovenia, festa: The Foundation for the Economics of
Sustainability.
31
This PowerPoint presentation argues that taxing away the capital gains on rising land
values removes the incentive for speculative property bubbles, that site values depend on
closeness to a variety of infrastructure that enables landowners to charges for advantages
to a site that are created by others, and, a land value tax will prevent community
economic development from landowner parasitism. Also argues that it would stabilize
the political system by removing the incentive for corrupt political involvement in land
speculation.
Davis, Charles H. and Nicholas Mills (2012). Innovation and Toronto's Cognitive-Cultural
Economy. R. University. Toronto, Canada: 30.
This paper (which will be a chapter in a forthcoming book) discusses how value is
created through the concept of a “cognitive-cultural economy (CCE)”. CCE examines
the economic as well as social significance if a group of industries, work tasks,
occupations and functions exist in the core metropolitan areas. This creates value
through innovation, and in the cultural sector through “soft innovation.” Although only
mentioned once, it does note that value capture is dimension of this concept. Some
application to the Toronto film Festival.
Davy, Benjamin (2007). Mandatory Happiness? Land Readjustment and Property in Germany.
Analyzing Land Readjustment: Economics, Law and Collective Action. Y.-H. Hong and B.
Needham. Cambridge, Massachusetts, Lincoln Institute of Land Policy: 37-55.
This chapter analyzes how the potential gains that come from readjusting land can be
made available to municipal governments in Germany. The chapter discusses the steps in
land readjustment (which is consolidation in this context). Also examines the German
law, especially in relation to eminent domain.
Denaldi, Rosana (2013). "Trapped by the land? Change and continuity in the provision of social
housing in Brazil." International Journal of Urban Sustainable Development 5(1): 40-53.
Despite economic growth, institutional strengthening, improved regulatory frameworks
for urban land markets and availability of subsidized financial resources for social
housing, Brazilian urban development policy has continued to face challenges in
providing access to housing for low-income groups. The authors argue that state spatial
policies have been severely weakened by the lack of leverage over urban land markets By
and large, most cities do not apply instruments of land value capture. The application of
the statute is cumbersome, since it evolves as a function of the political construction of
the local scale and urban space.
Dethier, Jean-Jacques (2012). The Great Recession and the Future of Cities. C. Morrill.
Washington D.C., The World Bank: 28.
This paper describes the serious fiscal crisis faced by cities around the world following
the Great Recession of 2008.. Section 3 discusses longer term strategies to ensure the
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financial, social and environmental sustainability of cities. As part of this section, value
capture is analyzed as a finance technique that allows governments to finance urban
renewal projects by internalizing the (future) positive externalities generated by these
investments. This practice has had success in London, Barcelona, Istanbul, Berlin,
Hamburg, and Copenhagen for projects ranging from sports stadiums to row houses to
metro development
Dethier, Jean-Jacques (2013). Coping with Urban Fiscal Stress around the World. Public
Research Working Paper. Washington D.C., The World Bank: 28.
This working paper argues that value capture finance is similar to TIFs since it allows
governments to finance urban renewal projects by internalizing the future positive
externalities that are generated by the projects. Notes several cities have had successes
doing this.
Dewey, Onesimo Flores (2011). The Value of a Promise: Housing Price Impacts of Plans to
Build Mass Transit in Ecatepec, Mexico. Lincoln Institute of Land Policy Working Paper.
Cambridge, MA, Lincoln Institute of Land Policy: 42.
This research explores whether announcement of plans to build mass transit infrastructure
had an effect on housing prices in Ecatepec, a fully urbanized municipality in the
northeastern fringe of the Mexico City metropolitan area. The analysis compares prices
of properties located within one kilometer of the future bus rapid transit (BRT) corridor
with those of properties sold within the same distance of a similar corridor where no mass
transit was slated to run. The results contradict the hypothesis that transit project plans
trigger an immediate windfall for property owners who capitalize on the expected
benefits of enhanced accessibility before the start of operations. Instead, the mass transit
plan appears to have had no impact on prices of lower-quality properties and in fact
reduce rather than increase the prices of higher-quality properties. Thus, the issue of
value-capture alternatives to finance infrastructure needs further exploration.
Dharmavaram, Soumya (2013). Land Value Capture in Urban DRM Programs. Washington
D.C., World Bank. 26: 20.
Risk-sensitive land use planning is vital for sustainable economic development and
effective disaster risk management (DRM). Many East Asia and the Pacific countries
have national land use policy and local plans which incorporate risk assessments;
however, they typically lack the means for their implementation. Facing these constraints,
local governments are attracted to economic instruments, such as land value capture
(LVC), to leverage finances. Paper identifies challenges and potential benefits of LVC
tools. Among a wide array of LVC tools, land readjustment and transfer of development
rights are particularly relevant as they can spatially direct urban development away from
disaster risks. This note introduces their potential for DRM as seen in their application in
Brazil, India, Japan, and the US.
33
Diao, Mi (2010). Sustainable Metropolitan Growth Strategies: Exploring the Role of the Built
Environment. Urban and Regional Planning. Cambridge, MA, Massachusetts Institute of
Technology. Ph.D. in Urban and Regional Planning: 148.
The focus in this study is to understand the role that the built environment can play in
sustainable metropolitan growth. It utilizes spatially detailed administrative data to
calibrate urban models and support metropolitan planning. In this dissertation’s third
essay, the role that selectivity and spatial autocorrelation could play in valuing the built
environment is analyzed. This information can help estimate the property-value effects of
land use change, and quantify the impacts of smart-growth policies on a neighborhood.
The empirical results suggest that the built environment can influence both the
probability of sale and transaction price of properties. Failing to correct for sample
selection and spatial autocorrelation leads to significant bias in valuing the built
environment. The bias might misguide policy recommendations for intervening urban
development patterns and distort estimations of the value-added effect of infrastructure
investment for land-value-capture programs.
Dixon, Timothy, et al. (2011). "Critical success factors in urban brownfield regeneration: an
analysis of ‘hardcore’ sites in Manchester and Osaka during the economic recession (2009 –
10)." Environment and Planning A 43(4): 961-980.
This article examines approaches for reclaiming difficult brownfield sites using an
agency based framework. Ten cases studies, set in Manchester UK and Osaka Japan are
used as examples. The authors conclude that these hardcore brownfields can be
regenerated if there are strong potential markets, long term vision, strong branding,
strong partnerships, integrated development and adequate infrastructure in place.
Dolphin, Tony (2013). New Priorities for British Economic Policy. London, UK, Institute for
Public Policy Research: 42.
This report argues that a new form of British capitalism, based on greater collaboration
between the state and the private sector, is needed to address British economic problems.
The section addressing additional tax revenues discusses land value taxation. The report
addresses how it would work, how it would stabilize future fluctuations in housing prices
and how it would help to rebalance the economy by encouraging moves away from
receiving income through owning property to earning income. It also notes several
reasons why it would be difficult to implement, but believes that these problems are
solvable. Concludes that it must be given serious consideration.
Donelson, Cathy (2013). Fairhope in the Roaring Twenties. Charleston, South Carolina, Arcadia
Publishing.
This book discusses the history of Fairhope, Alabama, which was founded in 1894 as an
experiment in communal living. The town's was financed by a single land tax. The book
34
claims that the town became the world's oldest and most successful single-tax colony.
Reached its peak in the 1920's.
Dorantes, Lucia Mejia and Jose Manuel Vassallo Magro (2010). Financing urban transport
through value capture. Highway and Urban Environment: Proceedings of the 9th Highway and
Urban Environment Symposium 2008. Madrid, Spain, Springer Netherlands. 17: 15-21.
The Green Paper on Urban Transport highlights the importance of promoting public
transport as a means of achieving better sustainable mobility. Unfortunately, budget
resources are often constrained. On the other hand, literature points out that transport
infrastructure induce economic impacts in the areas where they are placed. This effect is
caused by the fact that people realize the positive effects of accessibility and want to live
or work close to transport stations. Regarding this fact a question arises: Is it possible to
capture the value induced by the construction of a new infrastructure facility as an
additional financial source. The aim of this paper is to analyze different direct and
indirect mechanisms of value capture to fund transport infrastructure.
Dorling, Danny (2011). Underclass, overclass, ruling class, supernova class. Fighting Poverty,
Inequality and Injustice. A. Walker, A. Sinfield and C. Walker. Bristol, UK, The Policy Press,
University of Bristol: 153-174.
This is a chapter in a book concerned about poverty, inequality and injustice. One of the
author’s recommendations is a land value tax. The author claims at a land value tax of 7p
per square meter would eliminate the UK national debt. This tax is so small that the vast
majority of people would not notice it. If it were raised to 10p a square meter the Council
tax could be abolished. Those that can't pay, could sell a small portion of the land to pay
the tax. it also notes that land is very hard to hide.
Du, Hongbo and Corinne Mulley (2007). Transport Accessibility and Land Value: A Case Study
of Tyne and Wear. RICS Research Paper Series. Newcastle University, London SW1P 3AD,
UK, RICS Research. 7: 52.
This study is concerned with the relationship between transport accessibility and
increases in land value. Focusing on residential land, land value is examined through the
form of house prices, using the Tyne and Wear Region of the UK as a case study. The
study uses a relatively new technique, Geographically Weighted Regression (GWR),
which addresses the issue of spatial effects. By embodying spatial coordinates into the
traditional global regression model, GWR provides a set of local estimates using a
weighted least squares process. This study identifies that the relationship between
transport accessibility and land value varies over space. This suggests that a land value
capture policy must take into account this lack of homogeneity and that the application of
a uniform ‘tax’ would be inappropriate.
35
Du, Hongbo and Corinne Mulley (2012). "Understanding spatial variations in the impact of
accessibility on land value using geographically weighted regression." Journal of Transport and
Land Use 5(2): 46-59.
This study focuses on the impact of the Tyne and Wear Metro, a light rail system, using a
Geographically Weighted Regression (GWR) model with property prices as the
dependent variable which is then explained by independent variables designed to
standardize for household features as well as some spatially defined factors including the
transport accessibility of the house location. The results from the global regression model
(equivalent to a hedonic model) show that the internal factors of the property and socio-
economic classification of its location are the dominant determinants of property prices
while transport accessibility variables, as key components of property location reflecting
land value, are also significant in determining property prices.
Dube, Jean, et al. (2013). "Commuter rail accessibility and house values: The case of the
Montreal South Shore, Canada, 1992–2009." Transportation Research Part A: Policy and
Practice 54: 49-66.
The impact of public transportation on location rent remain poorly known. However,
there is a strong connection between public transportation infrastructure and real estate
markets. This paper aims at estimating the actual effect of implementing a commuter
train service between a major city (Montreal, Canada) and its southern periphery
occurring in 2000–2003. Using a difference-in-differences (DID) estimator in the hedonic
price model, the paper estimates the direct marginal price impact of a new commuter
train service following changes in access to stations. Results suggest that the opening of a
new commuter train service on the Montreal South Shore generates a location premium
for houses located in the stations’ vicinity as opposed to houses that do not experience
any improvement in accessibility to the commuter train service. In addition, the new
service raises property tax income for involved municipalities by eleven million dollars a
year through enhanced property values.
Duc, Nguyen Cao (2009). Tax System Reforms in Japan: Lessons for Vietnam. Tokyo, Japan,
Japan Center for Economic Research (JCER); Nikkei (Nihon Keizai Shimbun), Inc.: 113.
This report has some data on land taxes in Japan in the context of a quantitative
methodology that investigates the relationship among tax revenue, government
expenditure, and GDP. Applies unit root and stationary tests. makes policy
recommendations for Vietnam.
Dunbar, R.J., et al. (2009). Organizing integrated urban development projects. Auckland, New
Zealand, CityScope Consultants Ltd.: 87.
This report examines barriers to integrating land use and transport projects in New
Zealand. It identifies several necessary components for urban development planning,
including commercial feasibility analysis. In this area, the outcomes for joint public-
36
private partnerships should include increased land values. It identifies a difficulty, with
respect to land ownership, as to whether privately owned land around stations should be
sold to private interests to realize the value gains associated with a TOD. Another issue
identified is that of cash-flow impacts when the value is not immediately realized. There
are two case studies of value capture (Portland and Chicago). Notes that New Zealand
does not currently have value-uplift schemes
Duncan, Michael D. (2007). The Conditional Nature of Rail Transit Capitalization in San Diego,
California. City and Regional Planning. Berkeley, California, University of California. Ph.D.:
159.
This dissertation provides a detailed quantitative analysis of the effect that rail transit
stations have on housing property values in San Diego, CA. The findings illustrates that
the capitalization benefits vary depending on a property’s attributes and location within a
region. Monetized capitalization benefits indicate the potential for value capture to tax
properties around stations to recoup some of the value provided to a parcel by station
proximity. Large capitalization benefits would indicate the potential to tap into large
source of extra revenue.
Dye, Richard F. and Richard W. England, Eds. (2009). Land Value Taxation. Cambridge MA,
Lincoln Institute of Land Policy.
This book contains nine chapters and a forward that address issues of land taxation. The
individual chapters are included in this bibliography
Dye, Richard F. and Richard W. England (2009). The Principles and Promises of Land Value
Taxation. Land Value Taxation. R. F. Dye and R. W. England. Cambridge MA, Lincoln Institute
of Land Policy: 3-10.
This introductory chapter describes the analysis of the other chapter authors. It concludes
that a land value tax is potentially feasible, that proposals to implement a land value tax
will be controversial and will generate opposition, and that there are constitutional,
statutory or administrative problems that must be confronted before a land value tax can
be successfully implemented.
Dye, Richard F. and Richard W. England (2010). Assessing the Theory and Practice of Land
Value Taxation. Cambridge, MA, Lincoln Institute of Land Policy.
This Lincoln Policy Focus Report describes land value taxation, including a discussion of
efficiency, distributional, and land use effects. It argues that there is strong theoretical
support for this type of taxation and in particular, reducing the tax on real estate
improvement. It does note that the empirical evidence for some of the theoretical
propositions is inconclusive. The report recommends several features to be considered
when introducing a land value tax.
37
Dziauddin, Mohd Faris (2009). Measuring the effects of the light rail transit (LRT) system on
house prices in the Klang Valley, Malaysia - See more at:
http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.506662#sthash.CtofLzTW.dpuf. School of
Architecture, Planning and Landscape. EthOS; Electronic thesis OnLine Service, Newcastle
University, UK. Ph.D.: 517.
This research attempts to estimate the increased value of land in the form of house prices
as a result of improved accessibility owing to the construction of Light Rail Transit
(LRT) systems. The Kelana Jaya Line LRT system is chosen as the case study. Hedonic
house price modelling and Geographically Weighted Regression (GWR) are employed to
measure the effects of the LRT system on house prices in the Klang Valley, Malaysia.
Results show a positive relationship between the existence of the LRT system and house
prices. The research findings provide justification for potential implementation of a Land
Value Capture (LVC) policy. Strategies in a LVC policy that may be implemented
include property and sales taxes, real estate lease and sales revenues, fare-box revenues,
fees on everything from parking to business licenses, join development, tax increment
financing, special assessment districts, equity participation and public-private
partnership.
Dziauddin, Mohd Faris, et al. (2013). "Estimating the Effects of Light Rail Transit (LRT) System
on the Property Values in the Klang Valley, Malaysia: A Hedonic House Price Approach."
Jurnal Teknologi 61(1): 35-47.
This study investigates the increased value of land in the form of house prices as a result
of improved accessibility to a Light Rail Transit (LRT) systems. Kelana Jaya Line LRT
system is chosen as the case study in this research. The results show a positive
relationship between the existence of the LRT system and house prices. The introduction
of new transport infrastructures such as an LRT system to improve the accessibility of
city centers for those living in residential areas could also bring indirect benefits to the
local area because it can uplift land value for those areas that have been served by the
system. Additionally, the research findings provide justification for the potential
implementation of a Land Value Capture (LVC) policy. But, a LVC policy need to be
carefully implemented and the premium associated with the rail transit systems on land
values/house prices should be well estimated beforehand.
England, Richard W. (2010). "Ricardo, Gold, and Rails: Discovering the Origins of Progress and
Poverty." American Journal of Economics and Sociology 69(4): 1279-1293.
This describes the historical period in which George lived and how it influenced his
writings.
Erba, Diego Alfonso (2012). "Application of 3D Cadastres as a Land Policy Tool." Land Lines:
8-14.
38
Demonstrates how 3D visualization can be used to better estimate land and property
values, thereby helping to more precisely estimate value capture charges.
European Conference of Transport Research Institutes (2007). European Research Forum for
Urban Mobility. L. Franckx. Brussels, Belgium, Union Internationale des Transports Publics: 79.
Taxes levied on the value of land—land value taxation—would lead to an internalization
of external costs imposed by the development of land, and would discourage urban
sprawl. Moreover, earmarking the tax receipts for the funding of the transport
infrastructure that leads to an increase in the land value in a given area (“land value
capture”) can contribute to solving the problem of funding infrastructure. However,
empirical European research on this topic is rather scarce and the implementation of land
value taxation could meet of political resistance. Open research questions remain
concerning methodological aspects and questions regarding the instrument’s
implementation. Additional research should be undertaken on how land value capture
and PPPs could be optimally combined, as the use of land value capture could
significantly decrease the revenue risk in the case of a PPP project.
Evans, Chris (2012). "Comparing the Reviews: A Comparison of Recent Tax Reviews in
Australia, The United Kingdom and New Zealand or "A Funny Thing Happened on the Way to
the Forum." Journal of Australian Taxation 14: 146-183.
This review article examines three national level tax reform commissions and their
recommendations: the Henry Commission for Australia, the Mirrlees Review for the
United Kingdom, and the TWG Review for New Zealand. All three of the reviews
advocate a land tax as part of the system. It also makes observations concerning the
political process.
Fainstein, Susan S. (2012). Land Value Capture and Justice. Value Capture and Land Policies. G.
K. Ingram and Y.-H. Hong. Cambridge, MA, Lincoln Institute of Land Policies: 21-40.
This chapter examines both the purposes of land value taxation and the benefits to the
general public that occur by its capturing increases in land value. It examines two
approaches: public or communal ownership of land with structures available only
through leaseholds and imposing requirements on developers and owners within specific
project areas in return for government assistance. It concludes that only through public
ownership and only under certain conditions, can Henry George's equity desires be
recognized.
Falco, Enzo (2012). Dealing with Betterment Value: Different Trends between Italy and
England. Scuola di Dottorato in Ingegneria Civile e Architettura. Rome, Italy, University of
Rome. Ph.D.: 152.
The focus of the present work is on the planning practices used in Italy and England to
deal with the question of betterment value in trying to capture a portion of betterment
39
created by development of land. The relevant literature refers to various attempts to tax
the increase in the value of land to the currently used negotiation-based mechanisms,
based on the transfer of development rights. Betterment value can be described as the
increase in the value of land determined by changes in planning decisions which
determine the rise in the value of land. Other forms of betterment deriving for example
from infrastructure improvements, or provision of new services are not taken into
consideration for the major part of this work.
Fang, Kai-Hung (2007). Breaking out of the Trap: Local Fiscal Stress in Taiwan and Proposing
for Change. International Conference on Government Performance Management. Perth,
Australia: 33.
Data on the role of the land tax are included in this paper.
Fanga, Wang and Xiong Jin-wub (2012). "Sun Yat-sen's Proposition of Land Value Tax and its
Modern Significance." Journal of Guizhou University of Finance and Economics 2012(013).
(from abstract only; article only in Chinese) China’s land taxation system comes from
Sun Yat-Sen’s proposition that the land value increment should go to the public. This led
to a comprehensive land value taxation system that serves as a reference for the reform of
land system and land taxation in today’s China
Faria, Katherine (2011). Bolder and Brighter: Recommendations for Strengthening Toronto's
Official Plan. Toronto, Canada, Office of Councilor Peter Milczyn: 44.
A general discussion of Toronto's land use planning. Has a section on value capture to
finance transit oriented development. Recommends a new policy to investigate the
feasibility of a City-led land-value capture investment strategy to fund transportation
infrastructure expansions.
Federation of Indian Chambers of Commerce and Industry, Urban Infrastructure Committee
(2011). Urban Infrastructure in India. New Delhi, India: 40.
The transfer of Development Rights as land value capture tools are potential approaches
for finance. There are mainly two approaches: 1. Additional Development Rights (ADR)
and 2. Transfer of Development Rights (TDR). In case of land acquisition for creation of
public infrastructure the owner of the land can be issued development rights in form
which can be used in the predefined destination zone which may or may not be at the
same location as the original plot. This has been tried in Mumbai.
Ferrari, Ed and Alasdair Rae (2011). Local Housing Market Volatility. York, UK, Joseph
Rowntree Foundation: 59.
This report examines local housing market volatility in the UK. There is a discussion of
planning gains, and the report argues that the value created through the granting of
40
planning permission should be captured for the benefit of communities in which housing
market pressures arise. The impact of ‘spreading’ value capture across a wider area
should be carefully considered in local contexts to ensure that it brings maximal benefits
in terms of tackling local market volatility. The report finds that the issue of local housing
market volatility remains a serious one.
Field, M., et al. (2012). ESRC Tensions and Prospects for Sustainable Housing Growth--A case
study of Northampton and Milton Keynes. Northhampton, UK. The University of Northampton:
27.
Describes the mechanisms to help planned development in two UK towns. One of these
is a “roof tax” designed to collect funds for infrastructure. Different levels of charges
would be applied to land with different values. As values rose because of the impacts of
public and private sector investments, there would be additional contributions.
Affordable housing was not included in this. Developers describe these contributions as
being paid out of land values. One conclusion of paper is that more transparency as to
this process needs to be made
Flint, Anthony (n.d.). Two Strategies to Confront the Crisis: Value Capture in Inclusionary
Zoning and Converting Foreclosed Properties to community Land Trusts. Forging a New
Housing Policy: Opportunity in the Wake of Crises. C. Niedt and M. Silver. Hempstead, N.Y.,
Hofstra University, National Center for Suburban Studies: 56-58.
Brief review of inclusionary zoning as a type of value capture strategy.
Flomenhoft, Gary (2009). A Green Tax Shift for Vermont. Vermont Green Tax and Common
Assets Project. Burlington, VT, Gund Institute.
This report includes proposing a land tax as part of a bundle of “green” tax shifts. In one
of its options, it concludes that increases in green taxes to mitigate environmental
problems along with a land tax of 9.6 percent on land only would simplify taxes with a
single tax on nature and none on income, sales or any other productive activity. It would
also generate about $500 million of additional tax revenue.
Flood, Joe and Emma Louise Baker (2010). Housing implications of economic, social and spatial
change. J. Davidson. Melbourne, Australia, Flinders University: 159.
Developed economies have generally ignored the warnings provided by overheating
housing markets—in most cases to their considerable cost—or have attempted to control
them by raising general interest rates. It might instead be better to tax away the artificial
gains that have been created, as a form of value capture similar to that already applied to
new lots at the periphery. Extending the capital gains tax to cover owner-occupied
housing, as a form of value capture due to gains that have been created by government
actions, and restoring real net capital gains to full parity with other income would give
the market very considerable pause—although taxation of gains has not stopped investors
41
from jumping into the established market in a big way. These capital gains taxes could be
used to improve affordable housing supply in a variety of ways.
Fonstad, Hannah Marie (2013). Becoming Sustainable: Creating Urban Affordable Housing in
Phoenix, AZ. Architecture. Austin, Texas. The University of Texas. MSc.: 101.
This sustainable design Master’s thesis describes how a two-rate tax, with land being
taxed more heavily, could work to influence the provision of affordable housing in
Phoenix. Some interviews with developers are included.
Francis, James Venant (2013). Land value capture: Assessment for public-land leasing and
property taxation in financing roads infrastructure. The case of Mbeya city, Tanzania.
Programme in Urban Management and Development. Rotterdam, The Netherlands, Erasmus
University. MSc: 98.
The main objective of this thesis is to assess the performance of two financial
instruments: public land leasing and property taxation on how they can capture land
values to finance roads infrastructure. The assessment is geared to find out (a) whether
the instruments capture the value of land (b) how far revenue generated by these
instruments can contribute to the roads infrastructure investments and (c) the impact of
roads infrastructure to land value increments. The area of study was Mbeya city in
Tanzania.
Franzsen, Riel C.D. (2009). International Experience. Land Value Taxation. R. F. Dye and R. W.
England. Cambridge MA, Lincoln Institute of Land Policy: 27-47.
This chapter examines the international use of land value taxation through case studies of
five counties: Australia, New Zealand, Jamaica, South Africa and Estonia. It also
carefully distinguishes between unimproved land value and land value (site value).
Freire, Maria Emilia and Hernando Garzon (2014). Managing Local Revenues. Municipal
Finances: A Handbook for Local governments. C. Farvacque-Vitkovic and M. Kopanyi.
Washington D.c., IBRD/ The World Bank: 147-214.
General discussion of local government revenues, with an international focus. Some
discussion of value capture to finance local investment; gives a five step approach.
Gaffney, Mason (2009). "The hidden taxable capacity of land: enough and to spare."
International Journal of Social Economics 36(4): 328-411.
This (long) paper presents a more comprehensive and accurate measures of land rents and
values and explains how sixteen elements of land's taxable capacity that have not been
accurately disused in the literature. Included are corrections for downward bias in
standard land measurements, broadening of the concepts of land and land rents, the
42
estimating of rents gained with the abatement of other taxes, and how land taxes can be
uncapped without excess burden.
Gannon, Mark and John Ball (2011). The Hypothecation Discourse: Viability and Issues for
Funding Urban Transport Investment. Association for European Transport and Contributors: 15.
In the United Kingdom, the use of hypothecation of local taxes and charges to fund urban
transit, a proven method in the United States, Canada and Europe, has progressed
extremely slowly. Given the proven linkage between transport infrastructure investment
and increase in land values, there is an economic justification for all beneficiaries to
contribute towards funding a scheme through a form of a land value capture mechanism.
In the UK however this has traditionally been a difficult principle to effect in practice.
The aim of the paper is to examine the debate around the use of Hypothecation to fund
urban transit schemes. The paper will specifically consider the proposals to fund the
southern extension of London Underground's Northern line to Nine Elms and Battersea,
which has been proposed as a pilot project for Tax Incremental Financing (TIF).
Gao, Lu (2011). Housing Policy in China. Urban Studies and Planning. Cambridge, MA,
Massachusetts Institute of Technology. MSc.: 64.
This Master's thesis has some data on the land tax in China
Gdesz, Miroslaw (2008). "Betterment deduction as a form of compensation." Nordic Journal of
Surveying and Real Estate Research, Special Series 3: 38-49.
The paper focuses on the concept of betterment off-set for the amount of compensation
with the analysis from the Polish point of view. In the first part of the paper a definition
of the term “betterment off-setting” is presented and evaluated. The Polish approach to
betterment in the context of compensation provisions is discussed. On the basis of such
examination the paper presents the fairest method of recapturing the enhanced value of
land. In this optimal method recapturing provisions should be separated from the
expropriation provisions. The development agreement supported by development
contribution seems to serve as the main tool of recapturing. The method discussed
resolves also the problem of a public project (ex. subway) increasing the value of not
only the land adjacent to the acquired land but also of the further parcels.
Gdesz, Miroslaw (2011). Regulatory Frameworks for Land Value Taxation in Poland. Innovative
Land and Property Taxation. Nairobi, Kenya, United Nations: 30-.
This chapter discusses adjacency levies in Poland, which are based on ad valorem
formulas. Explains how adjacency levies are an appropriate tool for private participation
in the costs of providing local public infrastructure. It also distinguishes between
adjacency levies and planning fees and also notes that alternative financing options
should be explored.
43
German, Laura (2012). Multi-Level Governance of large-scale land acquisitions: Mapping and
evaluating the terrain. International Academic Conference on Global land Grabbing II. Cornell
University: 39.
This review suggests that governments have been far more effective in attracting
investment than in channeling it to enhance domestic value capture or mitigating negative
social and environmental impacts. The governance mechanisms reviewed in this paper
have surprisingly little to offer in terms of effort to leverage greater value capture for
local communities, domestic industries and state coffers. With the exception of a number
of emerging economies, host country governments have done very little to capitalize on
their strategic positioning to enhance revenue generation.
Gielen, Demetrio Munoz (2008). Public Value Capturing and the financing of Public
Infrastructure in England, Valencia and the Netherlands. International Academic Forum
‘Planning, law and property rights’, AESOP. Warsaw, Poland: 19.
This paper summarizes the legal framework that affects the role of private contributions
to public infrastructure and value capture. It compares the two polar points of view of
value capture—increased property values belong to the private owner of the property, no
matter what caused them to increase versus development rights that do not belong to the
landowner but to the public because the land use plan that assigns development
possibilities to the land is a public document. This discussion also relates to social justice
principles, which have been crystallized differently in different countries. The paper
summarizes the results of on-going research into the planning systems of England, Spain,
the Netherlands, and the region of Valencia.
Gielen, Demetrio Munoz (2010). Capturing value increase in urban redevelopment. Leiden, The
Netherlands, Sidestone Press.
This research project is motivated by the experience nowadays with the regeneration of
urban areas in many Dutch cities. On the one hand, regeneration can and often does
create a significant value increase on some of the plots of land. On the other hand, there
are other plots of land on which money has to be spent and which either give no returns
or which give a return less than the expenditure. When land is in public ownership, the
public owner can choose to use the net value increase to cover (some of) the net costs of
public infrastructure and facilities. When the land is not in public hands, public bodies
can nevertheless sometimes require developers who own the land and benefit from the
value increase to pay for the public infrastructure and facilities. A major problem comes
when some developers, the ‘free riders’, are not willing to contribute at all. The concept
‘capturing value increase’ includes several similar but not identical concepts. The three
concepts that are relevant for this research are: ‘cost recovery’, ‘value capturing’ and
‘creaming off plus value’. Case studies of England, Spain and the Netherlands are
included.
44
Gihring, Thomas A. (2009). The Value Capture Approach to Stimulating Transit Oriented
Development and Financing Transit Station Area Improvements. Seattle Washington, Victoria
Transit Policy Institute: 14.
The paper examines the proposition that a land value tax is an effective method to
promote transit oriented development and raise revenue to finance public improvements
within urban rail transit station areas. A case study of a proposed TOD special
assessment district in Seattle demonstrates how changing the general property tax to a
LVT would provide incentives to utilize sites more intensively.
Gill, Indermit (2008). World Development Report 2009: Reshaping Economic Geography--Part
III: Reframing the Policy Debates: 143.
By using spatially blind institutions, spatially connective infrastructure and spatially
targeted incentives, and calibrating the response to severity of the challenge, people can
be pulled out of poverty in developing countries. Land valuation, value capture, and land
taxation are specifically discussed. The idea is that the profit from property development
pays the operational and capital costs of the rail (or bus rapid transit) system. Value
capture is an extension of land tax mechanisms. Value capture techniques include (a) ad
valorem taxation (b) public private partnerships or transit joint development as used in
the USA and (c) leasing property. Land taxation asserts that urbanization rents tend to be
capitalized in real estate assets, especial urban land. Public intervention to capture part of
these rents through land taxes is justified on equity and efficiency grounds.
Glykou, Ioanna and Cristos N. Pitelis (2011). "On the political economy of the state, the public-
private nexus and industrial policy." Policy Studies 32(4): 19.
This article attempts to apply the theory of the firm analysis to industrial policy. Part of
the article recognizes that the existing theory suffers from severe limitations. First, the
creation of nation-wide value, though a national strategy, need not engender value and
wealth appropriation. Second, nationwide value creation and appropriation need not
benefit all economic agents. Third, the ensuing ‘agency’ and potential conflict may
undermine the sustainability of the value creation process. Fourth, if successful,
nationwide value appropriation strategies, may undermine the overall (global) sustainable
value creation process.
Gochenour, Zachary and Bryan Caplan (2013). "An entrepreneurial critique of Georgism."
Review of Austrian Economics 26(4): 483-491.
This is a critique of the single-tax theory. It develops a search theoretic model for natural
resource discovery and demonstrates that in this case, the tax is distortionary. It also
considers time inconsistency and regime uncertainty that comes about because of
Georgist policy. There is also some historical discussion.
45
Government Accountability Office (2010). Federal Role in Value Capture Strategies for Transit
is Limited, but Additional Guidance Could Help Clarify Policies. P. Transportation. Washington
D.C., GAO. GAO-10-781: 55.
Revenue generated by three value capture strategies has varied but in some cases has
been critical to financial feasibility of transit project. Report identifies several factors
that can facilitate or hinder agencies use of value capture strategies. Several agencies
report that Federal Transit Agency guidance is confusing. GAO makes clarification
recommendations.
Government of Ontario Metrolinx (2008). Preliminary Directions and Concepts towards
Sustainable Transportation. Ontario, Canada: 85.
In the context of mobility hubs: these are potentials for tax increment financing and
community improvement plan areas to allow for fiscal (and other) incentives for
development. These incentives include value capture strategies, as well as development
charges, public-private partnerships and expropriation powers. One of their directions for
sustainable financing is to develop and apply mechanisms to capture increases in land
values that come from new transportation infrastructure as a revenue source to finance
transport investment
Government of Ontario Metrolinx (2008). Transit Development of a Regional Transportation
Plan for the Greater Toronto and Hamilton Area. Ontario, Canada, Government of Ontario: 62.
This paper suggests the key attributes and features of an envisioned and integrated transit
system for the Greater Toronto and Hamilton Area. Additionally, this Green Paper also
identifies the need to consider a range of transit funding options, including potential
public-private partnerships, user fees, dedicated tax revenues and value capture through
the development of an investment strategy. Funding arrangements must provide sufficient
long-term funding for anticipated growth in the region’s economy and transportation
demand. One reform is the creation of a comprehensive, integrated system with new
approaches to funding, and building, transit and related modes. Potential revenue-
generating tools that grow with the economy include sales taxes, carbon taxes, land value
capture, road pricing and parking charges.
Grimes, Arthur (2011). Building Bridges: Treating a New Transport Link as a Real Option.
Wellington, New Zealand, Motu Economic and Public Policy Research: 23.
A transportation investment that materially improves links between centers opens up
previously unavailable options for new activities. Traditional cost-benefit analysis does
not adequately take account of the value of this option; real options theory must be added
to the analysis to evaluate the full benefits. This paper highlights how inclusion of real
options factors may either increase or decrease the attractiveness of a proposed
46
investment. The paper notes that a range of land value capture mechanisms can then be
used to extract some or all of the proven benefits of the project.
Grimley, GVA (2010). Viability Advice on CIL/Tariff for Broadband, Norwich and South
Norfolk, Final Report. London, UK, Greater Norwich Development Partnership: 192.
This consultant report considers betterment levies (called here Community Infrastructure
Levy (CIL)). The report analyzed what should be the level of the levy, should it be a
single levy or have differential rates, what is the implication for development trajectories
in three towns, and how should the level be organized and administered. They conclude
that the CIL would work for residential development (under normal market conditions)
but some uncertainty for commercial development. Make recommendations.
Gurdgiev, Constantin (2012, March 27). "Land Value Taxation and Other Measures for Raising
Public Investment Revenue: A Comparative Study." from
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2029515.
One of the most progressive and innovative approaches to public investment financing is
known as value capture. The author has shown that Land Value Tax (LVT) represents an
optimal tax instrument when compared to property tax and the existent structure of
property taxation. This paper introduces and discusses all internationally available
policies used for raising revenue to finance public investment, and draws on international
experience to highlight their main shortcomings and benefits. The paper considers a
dynamic model of value creation consistent with the economic framework of multiplier
effects of public and private spending and investment. In our view, Land Value (site
value) Tax represents the optimal policy instrument for raising revenue for public
investment when compared to all other alternatives.
Gurdgiev, Constantin (2012). Macroeconomic Case for a Land Value Tax Reform in Ireland,
SSRN: 55.
This ssrn report shows that a land value tax, in Ireland, improves macroeconomic
stability, supports economic growth, and helps provide infrastructure consistent with high
quality employment. It also increases resource allocation efficiency and reduces
economic and social inequality. Further argues for gradual implementation to encourage
coordination with other tax policies.
Gurdgiev, Constantin (2012). Raising Public Investment funding: Comparative Analysis of
Land Value Taxation. Land Value Tax in Ireland. E. O'Siochru: 23.
The value capture approach to public investment financing envisions creation of the
policy tools to adequately capture the privately accruing changes in the value of sites
and/or consumption that arise from public infrastructure investments. This paper provides
a comprehensive discussion of the concept of value creation arising from public
investment. It considers a dynamic model of value creation consistent with the economic
47
framework of multiplier effects of public and private spending and investment. It
distinguishes two unique stages of demand for funding: Early stage capital allocation
linked to the full capital cost of the project; and later stage O&M financing support.
Hailie, Ayichew Eshetie (2013). Challenges to Finance Urban Roads in Ethiopia. International
course on Housing and Urban Development. Rotterdam, The Netherlands, International Institute
of Urban Management, Erasmus University, Rotterdam, The Netherlands: 24.
The major objectives of the study were to assess the challenges to finance urban roads in
Ethiopia and to provide possible recommendations. The major barriers for constructing
full-fledged urban roads in Ethiopia are lack of government governance, lack of political
stability, corruption at large, government interference on price setting and low level of
PPPs. Therefore, it is inevitable that private sector investments will be mobilized to fill
funding gaps.. The study recommends adopting innovative financial instruments such as
public private partnerships (PPPs); tax increment financing; development charges (impact
fees), value capture; loans, bonds and carbon finance.
Harris, Chris (2007). Roads, Railways and Regimes: Why some societies are able to organise
suburban public transport – and why others can’t. Urban Research Program. Brisbane, Australia,
Griffith University: 62.
Henry-Georgists often appear to argue that their preferred single tax on land will cure
urban sprawl, without planning. This appears implausible, if only because of the
difficulty of organizing effective public transport networks. The real error of the single-
tax movement does not lie in its economic analysis but rather the treatment of the single
tax as a substitute for, rather than a complement to a broader agenda of regional planning.
The same goes for planners who ignore land value capture. A theorem suggests that the
most fundamental way to regulate urban traffic conditions is to use value capture to build
high-fixed-cost public transport infrastructure.
Hayashi, Yoshitsugu, et al. (2011). The Role of Rail Transport for Sustainable Urban Transport.
Transport Moving to Climate Intelligence. W. Rothengatter, Y. Hayashi and W. Schade. New
York, Springer: 161-174.
The necessity to establish efficient rail transit systems is often overlooked in developing
mega-cities. It is hard for domestic governments and private cooperation to invest in rail
construction spontaneously. The financing system for rail transit infrastructure
construction should be reformed. The value capture mechanism can be introduced into
domestic financing to reclaim the windfall benefits brought by constructing rail transit
infrastructures.
Hazan, Anna and Eran Razin (2012). The Changing Role of Municipal-Private Partnerships in
Local Development at a Period of Economic Crisis: Israeli Lessons. 22nd World Congress of
Political Science. Madrid, Spain: 12.
48
Paper discusses the changing nature of PPP in the case of municipal-private partnerships
in Israel, focusing on the impact of economic downturns on the role of PPP in local
development. Value capture mechanisms already serve as a tool in PPP, either to finance
subsidies to the private partner or to secure private sector participation in the public
investment. While the use of PPP needs to be more selective, municipal-private
partnerships are expected to retain an essential role in local development.
Heidel, Andrew, et al. (2008). Ranking CTA Infill Stations by Fiscal Efficiency Using
Alternative Local Financing Methods. Chicago, Transport Chicago: 14.
Multiple studies have shown a strong connection between proximity to transit and an
increase in land value. An important distinction to make, however, is that when taken as a
whole, land value effects of transit are more prevalent in areas with an established and
mature rail system, as newer, smaller systems do not have the coverage and range of
destinations necessary to allow property owners to command a price premium. By
implementing a value capture scheme, transit providers can decrease the general public
subsidy by gaining a return on at least a portion of the benefits provided by their service.
Others have noted that value capture has been present in other countries, notably
England, since the 1400's and even in the United States (or precursor colonies) since the
1600's.
Helm, Timothy Walter (2012). Essays on the Economics of Price Transmission. Department of
Economics. Melbourne, Australia, University of Melbourne. Ph.D.: 238.
The third section of this doctoral dissertation address taxes on land values. It examines
incidence, efficiency, development timing under both certainty and uncertainty
assumptions, asset price effects, and risk pooling. The last section of this third part
examines land taxation in an historical context. Included in this last part is a discussion
of implementation in New Zealand, Australia, the United States and the United Kingdom.
Hersey, John (2007). Making the Case for Transit-oriented Development in Downtown Holyoke,
Massachusetts. Department of Landscape Architectural and Regional Planning. Amherst,
Massachusetts, University of Massachusetts, Amherst, MA. Master's degree: 63.
TOD is unfamiliar in New England and developers here are unaware of its benefits and
challenges. However, there are models throughout the United States which exhibit
compelling financial considerations, including value capture from complementary
investments, special loan and public funding programs such as tax increment financing.
Opportunities discussed in this report speak to financing options typical to transit-
oriented development projects. Note that this report defines value capture as benefits
incurred from complementary investments from other parties.
Hess, Daniel Baldwin and Tangerine Maria Almeida (2007). "Impact of Proximity to Light Rail
Rapid Transit on Station-area Property Values in Buffalo, New York." Urban Studies 44(5-6):
1041-1068.
49
This study assesses the impact of proximity to light rail transit stations on residential
property values in Buffalo, New York, where light rail has been in service for 20 years,
but population is declining and ridership is decreasing. Hedonic models are constructed
of assessed value for residential properties within half a mile of 14 light rail stations. The
model suggests that, for homes located in the study area, every foot closer to a light rail
station increases average property values by $2.31 (using geographical straight-line
distance) and $0.99 (using network distance). Individual regression models for each of
the light rail system's 14 stations suggest that effects are not felt evenly throughout the
system.
Hickman, Robin, et al. (2013). "Planning more for sustainable mobility." Journal of Transport
Geography 33: 210-219.
This paper examines a transition to sustainable mobility viewed largely in terms of
reduced carbon dioxide (CO2) usage in transport. It concludes that this transition is
possible but difficult to implement. Part of this difficultly is in financing and the capture
of value uplift is proposed as a potential solution to the problem. It notes that if
government can buy the land prior to development, it then can sell the land after
development and make a profit. This profit can be used to pay for the infrastructure.
Uses British examples.
Holian, Matthew J. and Matthew E. Kahn (2013). California Voting and Suburbanization
Patterns: Implications for Transit Policy: 124.
Study examines whether suburbanization decreases support for transit infrastructure and
other pro-environment policies. Engages in statistical analysis of voter behavior with
respect to ballot propositions for transit as well as three case studies. Finds that support of
high speed rail is reduced by suburbanization. Finds that homeowners near high speed
rail stations vote yes (called the investment effect), because they believe their land values
will increase. Conclude report by advocating use of creative financing methods,
including value capture, to increase funding for transit as well as ensuring that scarce
transit investment funds are used for highest value projects.
Hong, Yu-Hung (2008). Taxing Land Without Market Value in Ancient China. Making the
Property Tax Work. R. Bahl, J. Martinez-Vazquez and J. Youngman. Cambridge MA, Lincoln
Institute of Land Policy: 315-333.
This chapter focuses on land taxation in ancient China. From this analysis in provides
three lessons: information on the market value of land was not a prerequisite for land
taxation; the simplest method worked best; and, the development of a property tax system
is a dynamic process.
50
Huang, Teng (2011). Financial Impacts of and Financing Methods for High-Speed Rail in
Portugal. Department of Civil and Environmental Engineering. Cambridge, MA, Massachusetts
Institute of Technology. MSc.: 193.
HSR is expected to shrink the temporal distance between cities, reshape travel patterns,
create an image effect for the country building it, and promote regional economics. HSR
is more capital intensive than other transportation projects in both unit cost (the cost per
lane km) and total cost. Due to its high costs and public or private budget constraints,
HSR may have significant financial impacts on other transportation investments. This
research aims to understand the financial impacts of HSR investments. It finds that HSR
investments crowd out other transportation investments. In the end, we propose the use of
monoline wrapped bonds and the establishment of Portuguese infrastructure bank to
lower the financial costs of Portuguese HSR investments. Further, we recommend the use
of value capture mechanisms to capture the mega-region economic benefits.
Huang, Teng and Joseph M. Sussman (2011, August 2011). "Financing Methods for High-Speed
Rail with Application to Portugal." from http://esd.mit.edu/WPS/2011/esd-wp-2011-09.pdf.
This paper discusses the cost characteristics of High Speed Rail (HSR), analyzes HSR’s
potential economic influence on megaregions, and identifies megaregion-related revenues
that can make HSR more financially viable: specifically, it discusses the use of value
capture mechanisms to capture the megaregion economic benefits of HSR in order to
finance such systems. Extensive discussion of value capture.
Hui, Eddie Chi-man, et al. (2010). "The Impact of an Announcement of Land Acquisition in
auctions on Real Estate Firm's Stock Return in Hong Kong." Property management 28(1): 18-32.
The purpose of this paper is to examine the abnormal stock return of Hong Kong real
estate firms following news of land acquisition and identify determinants to the abnormal
stock return. The paper indicates that on land acquisition announcement there is a
significant positive price reaction. Also the market capitalization and debt-to-equity ratio
of a firm is associated negatively with the level of abnormal price reaction. Put in
context of value capture.
Hull, Andy and Graeme Cooke (2012). Together at Home: A New Strategy for Housing.
London, UK, Institute for Public Policy Research: 126.
This report addresses housing problems in England and argues that too many people do
not have a home that is decent, affordable and secure. One of the solutions they suggest
is to levy a nationwide land value tax on all undeveloped (but developable) land above £2
million in value with the proceeds to be used for housing investment. The authors argue
that this would incentivize development and generate revenue for the building of new
housing. They deal with the political difficulty of implementation by taxing only the
wealthy (and note that two-thirds of the UK’s land is owned by 0.36 percent of the
population).
51
Hull, Andy, et al. (2011). Build Now or Pay Later? Funding New Housing Supply. Housing
policy: A fundamental Review. London, UK, Institute for Public Policy Research: 47.
This paper focuses on ideas for financing new housing supply in the UK. The analysis
emphasizes the prospective investor’s perspective. The authors argue that local
authorities should release public land to developers in return for an equity stake in
development; hold auctions to secure private land for new homes; and adopt a ‘use it or
lose it’ approach to privately held land fit for housing. The authors argue that, land
auctions are a land value capture mechanism, offering a form of rolled-up, upfront, local
land value tax that specifically targets undeveloped land. The authors list several
expected results
Iacono, Michael, et al. (2009). Value Capture for Transportation Finance: Report to Minnesota
Legislature. Minneapolis, MN, University of Minnesota Center for Transportation Studies. CTS-
09-18S: 56.
Conventional sources of revenue for transportation finance such as taxes on motor fuels
have been put under increasing pressure. One potential alternative as a source of revenue
is a set of policies collectively referred to as value capture policies. In contrast to fuel
taxes and other instruments that impose charges on users of transportation networks,
value capture policies seek to generate revenue by extracting a portion of the gains in the
value of land that result from improvements to transportation networks. In this report we
identify a set of eight policies that contain elements of the value capture approach. These
policies include land value taxes, tax increment financing, special assessments,
transportation utility fees, development impact fees, negotiated exactions, joint
development, and air rights. We evaluate each of the policies according to four criteria: 1)
efficiency, 2) equity 3) sustainability, and 4) feasibility. We conclude by examining some
legal and administrative issues related to the implementation of each policy with special
reference to Minnesota.
Ingram, Gregory K. and Yu-Hung Hong (eds.) (2012). Value Capture and land Policies.
Cambridge, Mass, Lincoln Institute of Land Policy.
This proceedings of the 2011 Land Policy Conference contains 15 chapters on various
aspects of value capture. Relevant chapters will be separately identified in this
bibliography.
Ingram, Gregory K. and Yu-Hung Hong (2012). Land Value Capture: Types and Outcomes.
Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln
Institute of Land Policy: 3-18.
This introductory chapter develops the conceptual framework of value capture, describes
the use of some common value capture techniques and instruments, discusses several
52
historical experiences with value capture, and examines some project based applications
of value capture. It also presents an outline of many of the chapters in the volume.
Jacobsen, Ingrid (n.d.). Value capture – a sound government intervention to regulate urban land
markets. HSREdition01. P. J. V. V. Coetzee. Pretoria, South Africa, Department of Human
Settlements, in collaboration with the business Enterprises at the University of Pretoria. 1: 65-89.
Attempts to recapture an unearned land value increment resulting from the rise in land
values and using it for public purposes have a long history. The diversity of spatial
patterns in urban agglomerations across the world requires the application of a range of
fiscal and regulatory instruments to capture land value increments. Application of these
instruments varies according to the degree to which government is able to intervene in
land markets, as well as in the amount of unearned increment they recapture. Value
capture mechanisms applied in South Africa are analyzed relating to their usefulness to
improve the financial situation of municipalities. Also looks at Brazil and Hong Kong
examples
Janssen-Jansen, Leonie, et al. (2008). New instruments in spatial planning: An international
perspective on non-financial compensation. Amsterdam, The Netherlands, IOS Press BV.
This book discusses why governments use non-financial compensation as a planning tool,
why governments have to compensate for the loss of a property right and why
governments have the right to recapture increased market value. The term non-financial
compensation has its roots in agency theory, which accepts that in a principal-agent
relation, non-financial compensation schemes will sometimes result in a greater
commitment by the agent than financial incentives. The perspective we take in the cases
in this book differs from agency theory, most notably because in these cases the value of
the non-financial compensation can be unclear. In many countries the idea of recouping
surplus value of planning decisions is growing in importance. The underlying concept in
many countries is that zoning is not a personal property right; it is a community property
right. The book has examples for many countries.
Jansssen-Jansen, Leonie B. (2013). "Delivering Urban Intensification Outcomes in a Context of
Discontinuous Growth: Experiences from the Netherlands." Built Environment 39(4): 422-437.
This paper reconceptualizes the delivery of urban intensification programs using the
Netherlands as an example. The paper notes that one of the most visible problems now is
the currently high and increasingly growing office vacancy rates in the Netherlands,
particularly in Amsterdam. This, along with falling house prices have put options for
value capture under pressure. Additionally, as local authorities compete with their
neighbors for economic development, they may increasingly forego value capture
mechanisms. However, because Dutch municipalities are able to buy land, they can
secure a direct financial gain from a change in zoning. Local governments use this value
increment of rezoning for offices to cross-subsidize other developments such as parks,
play grounds, affordable housing, etc.
53
Jetzek, Thorhildur (2013). "The Value Generating Mechanisms of Open Government Data."
Geoforum Perspektiv 12(23): 10.
There has been a move from a polarized world in which companies and governments
operate in different sectors to an interconnected, networked world of shared resources
and co-creation. One of the trends driving this change is open government data. This
article presents a framework of four value generating mechanisms from the use of open
government data. This framework will make it easier to compare different pathways to
value generation and highlights tensions between the private/public and economic/social
domains.
Jetzek, Thorhildur, et al. (2013). The Generative Mechanisms of Open Government Data.
Proceedings of the 21st European Conference on Information Systems. Utrecht University,
Utrecht, the Netherlands: 12.
The conceptual difference between value generation and value appropriation (capture)
has been growing in importance. Value appropriation materializes when an actor is able
to capture a portion of the value created by an activity. Because of the unique features of
Open Government Data (OGD), the value that is generated from the use of data is not
necessarily exclusively available for appropriation by the owner of the resource, nor even
by the value creator. Finds three barriers to value appropriation.
Johns, Robert (2009). Harnessing Value for Transportation Investment: Summary of the Study:
Value Capture for Transportation Finance. Minneapolis, MN, Center for Transportation Studies
University of Minnesota: 16.
Large public investments in transportation infrastructure can increase the value of
adjacent private land, sometimes substantially. Capturing the value of this benefit through
various tools is gaining interest as a finance mechanism for infrastructure investments.
This document summarizes the findings from a study funded by the State of Minnesota.
It finds that eight value capture strategies could potentially be applied by jurisdictions in
Minnesota. These strategies yield different outcomes, which can be assessed relative to
four criteria: economic efficiency, equity, sustainability, and feasibility. There are also
important legal considerations for units of government wishing to apply some or all of
these strategies.
Johnson, Sadhu Aufochs, et al. (2013). Getting Down to Business. The Guide to Greening Cities.
S. A. Johnson, S. S. Nicholas and J. Parzen. Washington, Island Press/Center for Resource
Economics: 151-187.
Green city leaders are moving from a green lens to a broader focus on the triple bottom
line of balancing environmental, economic and social goals. This chapter explores the
expanding roles of green city leaders in public finance and budgeting, private finance,
and business and economic development. it identifies tools used for value capture,
54
including tax increment financing, special assessments, impact fees, and property that
bases fees on the gross area of a land parcel.
Jou, Jyh-Bang and Tan Lee (2008). "Neutral Property Taxation Under Uncertainty." The Journal
of Real Estate Finance and Economics 37(3): 211-231.
The authors examine neutral taxation policy where demand for developed properties is
stochastic over time. In this model, a landlord irrevocably chooses both capital intensity
and timing. The government uses three types of property taxation: taxation of capital,
taxation on pre-development land value, and taxation on post-development property
value. The goal of the government is to expropriate a certain ratio of pre-tax site value as
well as neutrality. Various exogenous forces are allowed to vary. Very technical model.
Jou, Jyh-Bang and Tan Lee (2008). "Taxation on Land Value and Development When There Are
Negative Externalities from Development." Journal of Real Estate Finance and Economics 36(1):
103-120.
This technical article examines tax design on land value and development in a
competitive market. Assuming that development properties reduce open space and that
this negative externality is ignored, the authors find that properties will be developed
sooner than the social optimal. One way of correcting this is by imposing a negative tax
on land value—the opposite of a land value tax.
Junge, Jason R. and David Levinson (2012). "Financing Transportation with Land Value Taxes:
Effects on Development Intensity." Journal of Transport and Land Use 5(1): 49-63.
A significant portion of local transportation funding comes from the property tax. The tax
is conventionally assessed on both land and buildings, but transportation increases only
the value of the land. A more direct, efficient way to fund transportation projects is to tax
land at a higher rate than buildings. The lower tax on buildings would allow owners to
retain more of the profits of their investment in construction, and have the expected side
effect of increased development intensity. A partial equilibrium simulation is created for
Minneapolis, Richfield and Bloomington, Minnesota to determine the intensity effects of
various levels of split-rate property taxes for both residential and nonresidential
development. The results indicate that split-rate taxes would lead to higher density for
both types of development in all three cities.
Junge, Jason R. and David Levinson (2013). "Property Tax on Privatized Roads." Research in
Transportation Business & Management 7: 35-42.
Roads cover a significant fraction of the land area in many municipalities. The public
provision of roads means this land is exempt from the local property tax. Transferring
roads from public to private ownership would not only remove maintenance costs from
city budgets, but increase potential property tax revenue as well. This paper calculates the
value of the land occupied by roads in sample cities and determines the potential revenue
55
increase if they were subject to property tax. Further calculation computes the extent to
which the property tax rate could be reduced if the land values of roads were added to the
tax base
Kaganove, Olga (2012). Central and Local Governments as Land Regulators, Owners and
Managers: who is Doing What? Annual World Bank Conference on Land and Poverty, 2012.
Urban Institute, Washington, D.C.: 32.
Addresses land use challenges in countries where government decentralization,
devolution of government owned land to local governments, and revisions of land
governance are active processes. No direct discussion of value capture. Some
government policies sacrifice land value, with examples of Egypt, Serbia, Macedonia
discussed. Recommendations on inventorying, reporting, auditing, property rights
definitions, types and rules of acquisition, disposition, contribution of public property to
joint ventures, and use of land for borrowing
Kahane, Paul (2010). Clarifications and Relevance of Henry George. Google eBook, Xlibris
Corporation.
This book, by an avowed Georgist, examines principles of economics often using a
Georgist perspective. Goes into detail about the way a land tax would work. There is
some critical analysis of the land tax that is also included.
Kahn, Matthew E. and David M. Levinson (2011). Fix It First, Expand It Second, Reward It
Third: A New Strategy for America’s Highways. Washington D.C., The Hamilton Project: 36.
The roads and bridges that make up our nation’s highway infrastructure are in disrepair as
a result of insufficient maintenance. This deficit is in part due to a prioritization of new
projects over care for existing infrastructure. This paper proposes a reorganization of our
national highway infrastructure priorities. First, all revenues from the existing federal
gasoline tax would be devoted to repair, maintain, rehabilitate, reconstruct, and enhance
existing roads and bridges on the National Highway System. Second, funding for states to
build new and expand existing roads would come from a newly created Federal Highway
Bank. Third, new and expanded transportation infrastructure that meets or exceeds
projected benefits would receive an interest rate subsidy from a Highway Performance
Fund to be financed by net revenues from the Federal Highway Bank. Projects financed
by borrowing would be repaid with a dedicated revenue stream from user charges, and
with land value capture on benefiting properties if user charges are insufficient.
Kamal-Chaoui, Lamia and Alexis Roberts, Eds. (2009). Competitive Cities and Climate Change.
OECD Regional Development Working Papers Number 2. Paris, France, OECD.
This report offers a comprehensive analysis of how cities and metropolitan regions can
change the way we think about responding to climate change. In some metropolitan
regions, transportation-related taxes are used to fund metropolitan transit. A local tax that
56
is frequently used to finance public transportation is the value capture tax. Value capture
taxes can be imposed or can take the form of a negotiated agreement; they may be levied
as an ongoing annual charge or as a one-time tax. Value capture taxes have been used to
finance transport infrastructure in cities as different as Hong Kong, Miami, Milan and
Bogotá. A value capture tax can only be applied when the property value increase can be
unambiguously attributed to infrastructure investment. Value capture taxes are less useful
when property taxes are assessed on a yearly or regular basis, since the annual assessment
captures any increases in the property value that might result from public infrastructure
investment.
Kaszynska, Patricia, et al. (2012). Re-thinking Neighbourhood Planning: From consultation to
collaboration. Models and Partnerships for Social Prosperity. London, UK, ResPublica Green
Paper: 9.
This paper examines the support currently available for meaningful community-led
planning and makes the case for a more sustainable means of providing the resources
required to make the process work. The capture of social value should be incentive
enough to invest appropriately in neighborhood planning. This paper promotes a radical
re-think of how community-led development is understood by policy-makers, arguing for
a more holistic approach to planning, which reflects the true social and economic value of
building a better built environment and strong communities.
Kato, Andrew, et al. (2011). "Using the Property Tax to Appropriate Gains from Tourism."
Journal of Travel Research 50(2): 144-153.
This article examines a proposal of a two rate tax system by Kauai County, Hawaii.
Developed in order to capture rents from tourism and additionally provide property tax
relief to local homeowners, it finds that tourist accommodations are more capital
intensive than other real estate. Because of this, and because the proposed higher rate on
improvements, there is a heavier tax burden on the tourist industry relative to other
sectors of the economy. Concludes that this may not work well for communities that
wish to encourage tourism.
Kawaguchi, Yu Ichiro (2008). Real Estate Markets in Japan. International Real Estate: An
institutionalist approach. W. Seabrooke, P. Kent and H. H. H. How. Malden, MA, Blackwell
Publishing, Ltd.: 326-342.
A brief description of Japan's land value tax, which is intended to reduce the profitability
of holding land without using it. This tax is imposed on domestic, underveloped land
held by an individual of a corporation. The tax is based on the assessed value of land less
an exemption and is currently suspended.
Kemp, A., et al. (2013). Value capture mechanisms to fund transport infrastructure. NZ
Transport Agency. Wellington, NZ. NZ Transport Research Report 511: 107.
57
Transport infrastructure is increasingly being funded by charges that more closely target
the direct beneficiaries of the infrastructure. One form these charges can take is a levy on
land owners or developers – i.e. value capture mechanisms. In New Zealand there are a
number of mechanisms that can be defined as value capture mechanisms: development
contributions, financial contributions, targeted rates, and other negotiated mechanisms
that sit outside of legislation (i.e. do not refer to policies contained in a council’s long-
term plan). This report outlines the experience to date in using these mechanisms and
highlights a number of limitations with, and barriers to, the current use of them in New
Zealand.
Kiggundu, Amin T. (2009). "Financing public transport systems in Kuala Lumpur, Malaysia:
challenges and prospects." Transportation 36(3): 275-294.
Kuala Lumpur, Malaysia has poor public transit services, partially because of the lack of
funding. Article argues that prospects for future funding appear to be good. Article
draws lessons from Tokyo and Hong Kong. Concludes that it is crucial that more viable
funding strategies and policies such as value capture and public–private sector
partnerships be implemented. The strategies for funding public transport in Kuala
Lumpur need to be supplemented with key measures in form of transport demand
management such as high fuel taxes, high auto taxes, park and ride facilities and high car
parking charges.
Kiggundu, Amin T. and Stephen Mukiibi (2012). "Land Use and Transport Planning in the
Greater Kampala, Uganda." Indonesian Journal of Geography 44(1): 1-11.
This paper examines the impact of land use on transport planning in Kampala in view of
the city’s recent experience. To address key transportation challenges such as rapid
motorization and traffic jams, it is critical that land use-based strategies such as transit
malls, land value capture, constructing high density buildings (both commercial and
residential) along the transit lines as well as establishing park and ride facilities are
adopted by the urban managers and city policy makers. Mentions Tokyo and Hong Kong
as value capture examples.
Kim, Jin (2007). "Discriminant Impact of Transit Station Location on Office Rent and Land
Value in Seoul." Journal of Transport Economics and Policy 41(2): 219-245.
This study examines 731 office properties in Seoul, Korea to determine the impact on
office rentals and land values by a transit station's location in the city. Value premiums
from better accessibility to stations seem to exist; but they decay with increasing distance
from centers and correlate with the development densities of station areas. This study
expands its estimation model to contain errors as well as dependent variables, reducing
the spatial autocorrelation and thereby producing a more efficient estimate for transit's
impact. Discusses value capture approach.
58
Kim, Seung Gyu (2011). Essays in Spatial Analysis of Land Development and Recreation
Demand. Natural Resources. Knoxville, TN, University of Tennessee. Ph.D.: 125.
The land tax is analyzed in one of the three essays in this doctoral dissertation. He finds
that a property tax on land value promotes more compact and less leapfrogging
development during boom times and uses this result to confirm that a tax on land value
can be an effective land use policy tool. He explains why the land tax is effective during
expansions but not contractions by examining the potential income coming from land
development.
Kim, Seung Gyu, et al. (2012). Exploring Spatially Heterogeneous Effect of a Property Tax
Scheme on Land Development. Agricultural & Applied Economics Association’s 2012 AAEA
Annual Meeting. Seattle, WA: 22.
This paper examines whether a land value tax can lead to land (parcel) fragmentation.
The overall impact of a land value tax on land fragmentation may be as important as the
effect on development of new parcels. Study uses a maximum likelihood probit model
with sample selection to measure the effect of a land value tax on parcel level fragmented
development. Applies model to Knoxville, TN. Finds that a higher property tax rate on
land value could promote parcel fragmentation and that this relationship would be
stronger in the area between the city's and town's boundaries.
Kim, Yoonhee, et al. (2012). Infrastructure Finance. Colombia Urbanization Review:
Amplifying the Gains from the Urban Transition. T. Samad, N. Lozano-Gracia and A. Panman.
Washington, D.C., The World Bank: 157-217.
The objective of this chapter is to contribute to policy dialog on infrastructure financing
in Colombian cities. In analyzing the current structure of municipal financing for urban
infrastructure, it aims to shed light on both the strengths and weaknesses of the current
system. The recommendations and policy options explored to improve financing
mechanisms are differentiated by municipality and city size. The chapter is divided into
four sections. The first reviews public infrastructure finance in Colombian cities. The
second analyzes national government-supported programs in urban transport and the
water and sanitation sector. The third explores differentiated policy options drawing on
lessons and challenges from the application of urban infrastructure finance instruments,
particularly with Colombia’s experience with land-based finance instruments, such as
betterment levies and valorization (a type of value capture). It finds that value capture is
declining in use because of implementation delays and lack of transparency.
Kim, Yoonhee, et al. (2012). Infrastructure Finance. Colombia Urbanization Review:
Amplifying the Gains from the Urban Transition. T. Samad, N. Lozano-Gracia and A. Panman.
Washington D.C., The World Bank: 157-217.
An overview of four land-based financing instruments is provided. The first two have
been used in several Colombian cities and have been considered good practices
59
worldwide: betterment fees (valorización) and land-value capture (plusvalía).
Strengthening these tools in large cities, as well as extending their use to midsize cities, is
a first step toward further exploiting the use of land-based financing in Colombia. This
section highlights the main characteristics of these tools as well as their key limitations.
Successful implementation of plusvalía has been undermined by methodological
limitations and complex regulatory norms. As is the case with betterment levies, plusvalía
suffers from the lack of a precise methodology for measuring changes in property prices.
King, Kerry A. and Todd M. Nesbit (2007). The Potential Impacts of a split-Rate Property Tax in
the City of Erie. Erie, Pennsylvania, Economic Research Institute of Erie: 37.
This is a report analyzing the effects of a movement to a split-rate property tax for the
city of Erie Pennsylvania. After a discussion of the differences of a land value only tax
and a split-rate tax, the report analyzes several different tax ratios. The report focuses
only on the tax burden across property owners. It generally finds that under a split rate
system, residential property owners pay very slightly more than before the split.
Apartment, commercial and industrial property owners pay less, the property owners
most affected by the switch are those furthest away from the city average building to land
ratio. The report advises the city to transition slowly, perhaps taking as long as five
years, preceded by a one year announcement
Kirk, Robert S. and William J. Mallett (2013). Funding and Financing Highways and Public
Transportation. C. R. Service. Washington, D.C., Congressional Research Service: 33.
Value capture represents an attempt to cover part or all of the cost of transportation
improvements from landowners or developers who benefit from the resulting increase in
the value of real property. The federal role in value capture strategies may be limited, but
they are worth describing. GAO found that the most widely used mechanism is joint
development, in which a real estate project at or near a transit station is pursed
cooperatively between the public and private sectors. An example might involve a transit
agency leasing air rights over a station to a developer in exchange for a regular payment.
Joint development has generated relatively small amounts of money for transit agencies.
There has been less use of value capture in highway projects but this appears to be
changing. Examples are in Texas, Florida and Virginia.
Kitchen, Harry (2010). Discussion Paper: Principles and Best Practices for Funding, Financing,
and Cost SharingMetro Vancouver’s Municipal Services. Peterborough, Ontario, Department of
Economics, Trent University: 195.
This paper concentrates on a best practices approach to funding public services provided
by metropolitan and local governments, and more specifically, Metro Vancouver. A value
capture levy recovers the increase in land value arising from a public investment. City
spending on public infrastructure and subsequent zoning decisions can increase the
commercial value of holdings of private landowners. Value capture levies are justified if
the public investment creates windfall gains for the private developer. The levy permits
60
the municipality to capture (some of) the economic rents accruing to the private sector
that have been created by this local infrastructure spending. The paper describes a
variety of ways to capture value. Use of value capture levies is most suitable for mega-
projects such as rapid transit expansion
Kitchen, Harry (2013). Property Tax: A Situation Analysis and Overview. A Primer on Property
Tax: Administration and Policy. W. J. McCluskey, C. C. Cornia and L. C. Walters. Oxford, UK,
Blackwell Publishing Ltd.: 1-40.
This book chapter lays out the role that property taxes should play in financing municipal
services. It provides data on the relative importance of property taxes as a generator of
local revenue in a range of countries. It covers a number of important and controversial
issues in assessment. It then provides an overview of issues concerning property tax rates
and other property tax issues, including a discussion of incidence and property tax relief
schemes. Included is a discussion of value capture uses and concerns.
Kivleniece, Ilze and Bertrand V. Quelin (2012). "Creating and Capturing Value in Public-Private
Ties: A Private Actor's Perspective." Academy of Management Review 37(2): 272-299.
This article analyzes value capture from the private perspective in terms of public-private
partnerships. It argues that PPPs intersect the boundaries of public and private economic
activity and carry important organizational strategy, management and policy
implications. It identifies value creation and capture mechanisms embedded in these
implications through a theoretical framework of two conceptual public-private structural
alternatives. Two important restraints on private value capture--public partner
opportunism and external stakeholder activism arise asymmetrically under each form.
Note that public value capture is an extension of this analysis.
Knowles, Richard D. (2012). "Transit Oriented Development in Copenhagen, Denmark: from the
Finger Plan to Ørestad." Journal of Transport Geography 22: 251-261.
Ørestad is Copenhagen’s linear new town being built over a 30 year period around
stations on an elevated, driverless mini-metro line. A unique feature of Ørestad in
contemporary Europe is that the cost of constructing Phases 1 and 2 Copenhagen’s
Metro, including the underground section, was intended to be financed by capturing
increased land value by selling building sites along its route in Ørestad and earmarking
future revenues from Metro ticket sales to pay back the cost of the 30 year Government
construction loan. However this funding model proved to be insufficient as Metro’s
overall construction problems increased costs which more than doubled while the
forecast of passengers was too high. This financial shortfall is being paid for by Danish
taxpayers. However, the cost of constructing the Ørestad section of Metro has been partly
covered by land value capture. Ørestad’s land development costs were also much higher
than expected
61
Ko, Kate (2013). A Benefit Transfer Approach to Evaluate Livability Benefits of Transit Projects
in Benefit-Cost Analysis. TRB Annual Conference: 15.
One of the heated topics regarding benefit-cost analysis methods is the estimation of
livability benefits. Economic practice has favored the estimation of these benefits through
analyzing changes in property values, as this provides value capture evidence for policy
makers to justify the investment. In particular this approach suggests the value of all the
amenities generated by a transit project may be capitalized in the increased value of
nearby properties, which after the improvement are located in place that is more ‘livable.’
This research connects consumer demand and value of livability through benefit transfer
of existing hedonic studies of transit investment. In particular it lays out the steps to
which livability benefits can be assessed.
Ko, Kate and Xinyu (Jason) Cao (2013). "The Impact of Hiawatha Light Rail on Commercial
and Industrial Property Values in Minneapolis." Journal of Public Transportation 16(1): 47-66.
The impact of proximity to transit on property values has become a key question in the
debate on the relationships between public infrastructure investment and economic
development. The focus has been on value captured by residential properties, with far
fewer studies examining non-residential properties. Based on the economic theory of firm
location choice, this study develops hedonic pricing models to assess the value-added of
the Hiawatha LRT on commercial and industrial properties, using data on properties sold
before and after its completion. The results show that the LRT has induced a significant
price premium for properties nearby and that the impact extends to almost 0.9 miles away
from LRT stations. The size of the effect boundary has implications on value-capture
and, ultimately, project financing.
Koethenbuerger, Marko and Panu Poutvaara (2007). "Rent Taxation and Its Intertemporal
Welfare Effects in a Small Open Economy." International Tax and Public Finance 16(5): 697-
709.
Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its
rents benefits future generations. However, the effects of such steady-state gains on the
transitional generations have been left open. In this paper, we show that taxation of rents
may also increase utility of the current generation provided tax revenues are earmarked to
reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational
Pareto-improvement when the initially prevailing tax mix is sufficiently skewed towards
wage taxation.
Konstantinos, Triantafillakis (2007). Investigation of the Requirements for Private Participation
in Public Works. Civil Engineering. Kingston upon Thames, England, Kingston University.
Master Degree in Structural Design and Construction Management: 88.
ThisMaster’s thesis notes that a private sector’s project risks are not only assumed by the
private firm but also are allocated to the rest of the involved parties, including the public
62
sector. It then attempts to model these inter-relationships. Part of this model involves
value capture, which is defined as the transferring of part of the profit that the private
company realizes because it is adjacent to a public utility. This is not done voluntarily,
and the author recommends a lump sum or special tax. Notes that this is not been widely
put into practice in Greece.
Krabben, Erwin van der, et al. (2008). "How to Define the Optimal Level of Public-sector
Infrastructure Development? A Conceptual Model for Decision-making in Infrastructure
Projects." Planning Practice & Research 23(3): 363-381.
Discussion of financial problems of public-sector infrastructure development increasingly
focuses on ways to improve value capturing. Two issues are crucial: how much value can
be captured and how can we maximize the value to be captured? In this paper a
conceptual model is presented that enables defining the optimal level of public sector
infrastructure development—combining a social and financial perspective. Using the
model, it is possible, in principle, to define the maximum level of value capturing.
Additionally, the paper provides empirical evidence of the potentials of value capturing
in three Dutch case studies.
Krambeck, Holly and Don Emerson (2008). Using Value Capture to Finance the Fort Lauderdale
Downtown Transit Circulator. 2008 American Public transportation Association Rail
Conference. San Francisco, CA, American Public Transportation Association: 5.
One of the features of the proposed Fort Lauderdale streetcar is that it is being promoted
and developed by a consortium of local business and property owners, under the umbrella
of the Downtown Development Authority (DDA). Believing that a streetcar – with its
permanent infrastructure and positive image -- would further attract investment to the
downtown area, the DDA spent nearly three years on a streetcar proposal. The DDA
board members, many of whom are real estate developers and property owners, believed
that the streetcar’s permanent infrastructure and positive image would lend confidence to
investors. Additionally, board members also knew that the project is eligible for a
considerable amount of local, Federal and State funding and can be built relatively
quickly.
Kravitz, Alicia (2009). Transit Oriented Design: A Reinterpretation. School of Architecture and
Interior Design. Cincinnati, Ohio, University of Cincinnati. Masters of Architecture: 95.
Argues that land value close to a rail station far exceeds that of the same land use in close
proximity of a highway. It is possible that the initial costs of building transportation
infrastructure can be covered by the increase in property values and therefore increased
taxes collected by the government. One of the goals of a successful TOD is value
capturing. Value will be captured only when certain key requirements are met: frequent,
high quality transit service, and good connections between the station and the
surrounding community. Opportunities to capture the value of the investment come from
63
the future residents. For local government, this could mean a higher tax base as property
is worth more with the introduction of public transit
Kristiansen, Benjamin, et al. (2009). Value Capture: Improving Urban Planning in a Danish
Context. International Basic Studies in Social Sciences. Roskilde, Denmark, Roskilde
University. Master's: House 21.21, Group 1580.
After examining the current weaknesses of current urban planning regulations in
Denmark, this thesis shows how value capture tools can be used to improve Danish
society. It defines value capture, examines its mechanisms, and its use in the past (with a
particular focus on Curitiba, Brazil). It then examines the 5000 x 5000 plan (a plan to
build in Copenhagen 5000 cheap flats that would rent for 5000 DKR a month. However,
after five years only 192 of the apartments were built.) It then determines how value
capture can be applied to this plan in a very practitioner oriented manner. Land-Value
taxation is included as a value capture tool.
Kroeger, Timm and Anna McMurray (2008). Economic Benefits of Conserving Natural Lands:
Case Study: Mt. Agamenticus Area, Maine. Defenders of Wildlife Series. Washington D.C.,
Defenders of Wildlife: 45.
The ongoing loss of ecologically important natural lands in many parts of the U.S. is well
documented. Assessing the economic value of natural lands can yield information that
can inform better land use decisions and conservation policy making. Institutional
mechanisms must be in place that allow the owner of the land to capture the value of the
off-site services the land provides. Such mechanisms can take several possible forms,
including government payment programs, ecosystem service markets based on regulation
or voluntary action (e.g., carbon sequestration payments), or fiscal incentives (e.g., tax
deductions). In addition to the need for a value capture mechanism, the sum of the
landowner’s private (on-site) benefits and the compensation received for the off-site
benefits must exceed the benefits obtained from land development.
Kuminoff, Nicolai V. and Jaren C. Pope (2013). "The Value of Residential Land and Structures
during the Great Housing Boom and Bust." Land Economics 89(1): 1-29.
This article uses a hedonic estimator to separate the market value of land and structures at
the census tract level. It finds substantial heterogeneity in the market value of land and
structures within a metropolitan area. Implications for land value taxation are derived. In
particular, the authors find that a replacement cost approach may overstate the value of
land during a boom-bust cycle, the bias would be greatest in high amenity
neighborhoods, and that moving from a property tax to a land tax may help to stabilize
revenue streams for some municipalities.
Kunce, Mitch and Jason F. Shogren (2008). "Efficient decentralized fiscal and environmental
policy: A dual purpose Henry George tax." Ecological Economics 65(2): 569-573.
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This article suggests that because of decentralized tax policy responsibility, local
governments might try to attract industry and jobs by underproviding local public goods
with lower taxes (or lax environmental standards). However, the authors find that using
land taxation to fund local public goods, and tackle within-jurisdiction pollution
externalities, efficient public good provision and local environmental quality can be
obtained. However, the authors find that local governments must be able to tax a fixed
factor only, tax revenues are returned to immobile residents, and firms respond to a fixed
property tax.
Kwak, Sally (2009). Biases in Analysis of Split-Rate Property Tax Reforms: Hawaii's
Experience 1963-1979. Lincoln Institute of Land Policy Working Paper. Cambridge MA,
Lincoln Institute of Land Policy: 21.
This working paper notes that there are differences in beliefs as to the effects of a split
rate tax system on levels of sprawl, with some suggesting that it reduces sprawl and
others suggesting that it increases sprawl. This paper conducts a case study of Hawaii’s
experiment with split-rate taxation between 1963 and 1979. Additionally, the paper
outlines the political narrative underlying the passage and repeal of the split-rate tax. The
paper also identifies the potential biases in econometric work on split-rate taxation and
sprawl. However, no empirical work performed.
Kwak, Sally and James Mak (2011). "Political Economy of Property Tax Reform: Hawaii's
Experiment with Split-Rate Property Taxation." American Journal of Economics and Sociology
70(1): 4-29.
This article examines the political economy of Hawaii’s experience with split-rate
property taxation. The article traces the history of split rate in Hawaii and culminates
with the 2006 adoption of an inverted split rate tax on Kauai. (An inverted split-rate tax
taxes improvements on a higher rate than land.) Differentiates this history from the
Pittsburgh history, in that split rates in Hawaii was an idea that originated with the state,
not local governments.
LaGreca, Paolo, et al. (2011). "The density dilemma. A proposal for introducing smart growth
principles in a sprawling settlement within Catania Metropolitan Area." Cities 28(6): 527-535.
New development based on the TOD approach around the transit stations would need to
be a key priority in municipal planning, requiring a high level of detail. The accessibility
of land is generally not properly priced, because the cost of building and maintaining
transport infrastructures used to access land are sustained by the community and not by
the landowner. A proper taxation levied on the value of land and not on property, would
lead to an internalization of external costs imposed by the development of land, and
would discourage urban sprawl.
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Lall, Somik V., et al. (2012). Amplifying the Gains from Urbanization. Colombia Urbanization
Review: Amplifying the Gains from the Urban Transition. T. Samad, N. Lozano-Gracia and A.
Panman. Washington D.C., The World Bank: 21-56.
To finance public projects without placing undue stress on municipal finances, cities may
explore the possibility of adapting and applying value-capture instruments and other
innovative financing tools. Colombia’s National Development Plan for 2010–14
identified development of context-appropriate financing mechanisms as a policy priority.
In particular, there is considerable scope to capitalize on the fact that infrastructure
investment is often associated with property value gains. “Land-value-capture”
instruments have been utilized to leverage these gains to help extensively finance
infrastructure investments for brown-field development and urban redevelopment, with
mixed results.
Langley, Joe (2013). New Funding Options for Urban Renewal. 49th ISOCARP Congress.
Brisbane, Australia: 15.
This paper examines the potential use of value capture to contribute to Australia’s urban
renewal and public transport funding shortfall. Obstacles and opportunities to this
funding method are examined based upon recent pilot studies, government and private
sector reports, and urban renewal and public transport projects proposed or under
construction throughout the country. Successful value capture programs in North
America are presented to illustrate how such programs could be implemented given
Australian governance and legislative frameworks. Recommendations are made
concerning how value capture methods should be considered and implemented.
Lari, Adeel (2009, June). Value Capture for Transportation Finance: Technical Research Report.
Final Report. D. M. Levinson. Minneapolis MN, Center for Transportation Studies:
Conventional sources of revenue for transportation finance have been put under
increasing pressure. One potential alternative is a set of policies collectively referred to as
value capture policies which seek to generate revenue by extracting a portion of the gains
in the value of land that result from improvements to transportation networks. In this
report the authors identify a set of eight policies that contain elements of the value
capture approach: land value taxes, tax increment financing, special assessments,
transportation utility fees, development impact fees, negotiated exactions, joint
development, and air rights. Each of the policies is evaluated according to four criteria: 1)
efficiency, 2) equity, 3) sustainability, and 4) feasibility. Since these policies are targeted
toward use at the state and local level in Minnesota, the authors conclude by examining
legal and administrative issues related to the implementation of each policy with special
reference to Minnesota.
Latham, Peter (2011). "Land Value Taxation, debt and human rights: A Gramscian perspective."
Accountancy Business and the Public Interest 10: 94-123.
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This article, based on Latham's book, shows why Marxists reject Georgist arguments,
argues that many British taxes should be abolished and replaced by annual land value tax
plus progressive taxation of income and wealth, and asserts the relevance of Gramsci's
theory of the historic bloc in devising strategies to contest the convergence of Britain's
political parties around the surrender of local democracy to big business control.
Concludes that with an annual land value tax, Britain's deficit would be closed within five
years without cutting government services.
Law, Stephen, et al. (2013). Measuring the Influence of Spatial Configuration on the Housing
Market in Metropolitan London. Ninth International Space Syntax Symposium. Y. O. Kim, H. T.
Park and K. W. Seo. Seoul, Korea, Sejog University: 20.
In real estate economics, there is a lack of research in studying the relationship between
the built form and economic value. One perspective in understanding the built
environment morphology is through its spatial configuration. This research makes use of
the hedonic approach in estimating the influence of spatial configuration on observed
housing sold price. The results from this study suggest that spatial configuration measure
of accessibility such as space syntax integration and space syntax choice are significant
variables influencing transaction house price both positively and negatively in London
between 1995 - 2011. The results suggests space syntax integration is an appropriate
variable in hedonic models to capture accessibility effects.
Levinson, David M. and Emilia Istrate (2011). Financing Transportation through Land Value
Capture. Metropolitan Infrastructure Initiative Series. Washington D.C., Brookings Institution:
21.
This study examines accessibility and its importance in assessing transportation
performance and in creating a sustainable transportation funding source. It first delineates
the concept of accessibility through a comparison with the common transportation
performance metric of mobility. The paper then explains how accessibility can help fund
transportation through a virtuous circle. Local, state, and federal governments must better
understand the structure and characteristics of value-capture policies if they are to
develop their full potential as a sustainable funding source.
Li, Guicai, et al. (2013). "Value capture beyond municipalities: transit-oriented development and
inter-city passenger rail investment in China’s Pearl River Delta." Journal of Transport
Geography 33: 268-277.
The authors argue that fiscal regulations have shaped how China’s municipal
governments plan for and invest in passenger rail services and land development around
stations, and that policy reforms are necessary to bring successful transit-oriented
development and transit operation for China’s next round of urbanization. Using Pearl
River Delta (PRD) as the study case, we review the planning and funding processes for
an inter-city passenger rail services, and reveal how a new funding and planning
framework has been developed out of pre-existing organizational and legal constraints.
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The central piece of this innovation is a value capture framework beyond municipal
boundaries.
Lin, Tzu-Chin and Kwo-Hwa Chen (2008). Can Land Value be Extracted from the Total
Property Price-Some Empirical Evidence? 15th Annual European Real Estate Society
Conference. Krakow, Poland.
This paper attempts to extract land value from total property value using date from 1994
to 2003 in Taipei City, Taiwan. It employs a trend surface approach to establish a spatial
variable in order to capture the effects if spatially associated variables on property value.
It then derives the percentage of land value in the total property price using both linear
and non-linear regression models. Finally, it compares these to rule-of-thumb estimates.
No final results reported.
Lin, Tzu-Chin and Min-Hua Jhen (2009). "Inequity of land valuation in the highly developed
city of Taipei, Taiwan." Land Use Policy 26(3): 662-668.
This article examines assessment issues in Taipei, Taiwan, a site which has a history of a
split-rate property tax. It examines the implementation of this tax for accuracy and equity
issues. Using linear regression, it finds that the ratio of land value to total property tax
varies across types and ages of property, leading to both assessment and tax inequities.
Lindau, Luis Antoni, et al. (2007). Developing Bus Rapid Transit Systems In Brazil Through
Public Private Partnerships. International Conference Series on Competition and Ownership in
Land Passenger Transport – 2007 –. Hamilton Island, Queensland, Australia – Thredbo 10.
Tredbo 10: 23.
The BRT project of Porto Alegre consists of a route crossing the city center and linking
trunk and feeding interchange terminals. The BRT project for the East-Northeast zone of
São Paulo proposes to use value capture mechanisms made legal by the Statute of the
Cities, enacted in 2001. These include the concept of an urban operation – a legally
defined set of interventions and projects to be carried out within a specific area – and the
issue of tradable certificates of additional building rights in the area. In combination,
these mechanisms allow the anticipation of the financial resources required to execute the
proposed projects needed to raise property values in the region.
Litman, Todd (2012). Regional Transit Local Funding Options: Draft Technical Analysis.
Vancouver, Canada, Victoria Transport Policy Institute: 60.
This report describes the results of a study commissioned by the Victoria Regional
Transit Commission (VRTC) and the Capital Regional District (CRD) to identify and
evaluate potential local funding options to help finance major public transit
improvements in the Capital Regional District. It evaluated seventeen potential local
funding options according to nine criteria. This research included literature reviews,
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public surveys and focus groups, and analysis. Value capture is one of the options
analyzed.
Litman, Todd (2013). Local Funding Options for Public Transportation. Victoria British
Columbia, Canada, Victoria Transit Policy Institute: 39.
This report evaluates eighteen potential local funding options suitable to help finance
public transit or other transportation projects and services. They are evaluated according
to eight criteria, including potential revenue, predictability and sustainability, horizontal
and vertical equity, travel impacts, strategic development objectives, public acceptance
and ease of implementation. The overall conclusion of this study is that a variety of
funding options should be used to help finance the local share of transportation
improvements to insure stability and distribute costs broadly. Value capture is one of the
discussed tools.
Little, David D. and Margaret Picard (2009). The Impact of APMs on Property Value. 12th
International Conference of Automated People Movers, Atlanta, Georgia, American Society of
Civil Engineers.
Landside airport automatic people movers (APMs) that go "off" airport property typically
require multiple landowners and government agencies to agree on a multitude of
elements. One of the most important of these elements is project finance and one of the
most important components of project finance is the real estate value enhancement that a
landside APM provides. A strong correlation between property value and proximity to
fixed guideway transit (rail or APM) has been found for properties that are within
walking distance of a transit station. This paper helps define and quantify the positive
impact that landside airport APMs can have on real estate property value and how that
value enhancement can be "captured", to help improve a project's financial picture.
Lloyd, Eron (2009). The Social Shareholder Model. USBIG Conference Paper (Basic Income
Guarantee). New York City: 18.
This paper synthesizes two public policies: land value taxation and citizen dividends. It
develops an integrated framework that increases the attractiveness of both and which
increases the likelihood of implementation. It argues that a land value tax is the ideal
public finance mechanism to fund a citizen dividend which may be an essential
component need to advance a land value tax. Concludes that a land value tax can be a
funding source for basic income support programs.
Loehr, Dirk (2010). "External Costs as Driving Forces of Land Use Changes." Sustainability
2(4): 1035-1054.
Land conversion is often not carried out in a sustainable way. This paper compares
Germany, China and Cambodia. The article points out that, despite huge differences in
institutions and governance, unsustainable land use changes have some patterns in
69
common: The beneficiaries of land conversion are often well-organized actors, whereas
the costs of land conversion are often shifted to poorly organized groups and to society as
a whole. In order to achieve a sustainable land use policy, the article suggests completing
the planning law with an economic framework. Concludes that infrastructure is basically
a public good which should be financed out of taxes. Developers act as an agent of the
state. They should get fair compensation. However, they should be paid by tax revenues
and not participate in the incremental value caused by land conversion
Loehr, Dirk (2012). "Land Reforms and the Tragedy of the Anticommons—A Case Study from
Cambodia." Sustainability 4: 773-793.
Within the privatization agenda, benefits of unimproved land (such as land rents and
value capture) are reaped privately by well-organized actors, whereas the costs of
valorization (e.g., infrastructure) or opportunity costs of land use changes are shifted onto
poorly organized groups. Article then gives a formal definition of value capture in terms
of present value. A reframing of development policy is necessary. Examples and
evidence are provided from Cambodia, which has many features in common with other
countries in Asia and Sub-Saharan Africa.
Longhofer, Stanley D. (2011). Less than Nothing: Land Value Taxation when Land Values are
Negative. W. S. University. Wichita, KS: 17.
Land values can be negative if the holding costs of land ownership exceeds the land rents
that accrue to the property owner. This paper concludes that negative land values would
not fundamentally change the efficiency characteristics of a land tax. It also provides a
framework for determining when external factors that affect property values are
attributable to land or building values.
Lopez-Morales, Ernesto Jose (2009). Gentrification by ground rent dispossession in Santiago de
Chile. ISA International Housing Conference. University of Glasgow, Scotland: 32.
This paper claims the existence in Chile of a particular form of gentrification by ground
rent dispossession. The result is owner-occupiers struggle to add further exchange value
to their properties, while the largest portion of potential ground rent produced is realized
and accumulated exclusively by large-scale developers. Consequently, dilapidation
spreads in the inner city, and, in the event of large-scale renewal, residents have to sell
out at lowered price.. In this context, land taxation has limited effects for several reasons.
Lord, Kenneth R. (2012). "Two Views of Social Justice: A Catholic/Georgist Dialogue."
American Journal of Economics and Sociology 71(4): 697-713.
This is a summary of a social justice dialog between Catholics and Georgist’s which was
held under the auspices of a Jesuit university. While eight topics are discussed, land
taxes are mentioned only in the neighborhood revitalization section. There is some
skepticism concerning the efficacy of a land tax’s impact on revitalization, which might
70
reflect the differences between a social orientation and an economic orientation toward
neighborhood revitalization.
Lowe, Marcy and Monica La (2012). U.S. Bus Rapid Transit: 10 high-quality features and the
value chain of firms that provide them. Durham NC, Duke University: 77.
Bus rapid transit (BRT) is increasingly being considered in cities across the United States
public transit mode. A large part of the appeal of BRT is its flexibility, offering a choice
of system features that can be adapted to each community’s needs and constraints.
Among reports key findings is that the finance segment is less developed for BRT
compared with rail or highway projects, with value capture and innovative finance not
being considered BRT. These innovative finance mechanisms—such as special
assessment districts or public/private joint development projects—attempt to capture the
increased value of property surrounding a BRT line or corridor, using it to leverage
public funding resources and help pay for capital costs.
Luger, Michael I. and Justyna Dabrowska (2012). Science Parks and Land Value Capture. Value
Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln Institute of
Land Policy: 235-258.
This chapter focuses on research parks as real estate investments while recognizing that
there is also a value for non-real estate benefits. Its central question is that if public and
university investments add value to a science park, does that increase in value get
captured by those stakeholders. The chapter investigates town-gown fiscal relations,
reviews the literature on the success of research parks, and outlines a methodological
approach that might be used in case studies.
Mabe, Joshua Biliwi (2013). Financing Urban Infrastructure/Services through Property Tax and
Land Leasing: A Case Study of Sekondi-Takoradi Metropolis, Ghana. International Institute of
Urban Management. Rotterdam, The Netherlands, Erasmus University Rotterdam. MSc. Urban
Management and Development: 112.
The Vancouver Declaration in 1976 sparked discussion of land value capture and
consideration as revenue generation source for governments worldwide. Several LVC
instruments exist but property tax and land leasing have been considered in this study.
The property tax in Ghana is based on improvements only and depreciated replacement
cost which in principle alone does not capture land values. In order to solve this problem,
a primary research question “To what extent does property tax and land leasing capture
land values to finance urban infrastructure/services?” was posed. The approach to the
research was a case study.
Maciel, Vladimir Fernandes and Ciro Biderman (2013). "Assessing the effects of the São Paulo's
metropolitan beltway on residential land prices." Journal of Transport Literature 7(2): 373-402.
71
This paper estimates the effect of highways on land prices using the implementation of
the west branch of a large beltway around Sao Paulo Metropolitan Area. This is a unique
opportunity because the beltway is being implemented by branches, so, it is possible to
use the zones surrounding the branches where construction has actually started as a
treatment group to be compared with zones surrounding branches for which construction
has not started yet. This makes it possible to estimate the impact by difference-in-
difference estimation. The evidence is that there are significant and asymmetrical effects
caused by the highway construction. The results have consequences for transportation
finance; betterment levies and value capture taxes; and welfare.
MacKinnon, Danny (2013). "Strategic Coupling and Regional Development in Resource
Economies: The Case of the Pilbara." Australian Geographer 44(3): 18.
As part of a discussion of regional development, this article briefly discusses an
Australian program of returning “some of the value captured by the State back” to the
areas in which the value was generated. This reflects the “institutional fault line of
Australian politics: federal-state relations.”
Magalhaes, L., et al. (2010). Improving Pedestrian Mobility in Cities of Unfavorable Orography.
Lisbon, Portugal, Institute Superior Technico, Universidade Tecnica de Lisboa: 10.
The aim of this work is to study the feasibility of escalators in three areas of Lisbon that
would allow access to Campo dos Martires da Patria which is located on a hill. An area
with good accessibility is quite popular and the cost of real estate is high. The
installation of escalators generates substantial improvements in accessibility which
causes an enhancement of properties in the surrounding area and the dwellings in the
vicinity of this system will be closer to much more parts of the city. This value should be
captured in at least in two thirds of his total for the local administration responsible for
the installation and management of this mechanism.
Mahendra, Anjali, et al. (2013). Financing Needs for Sustainable Transport Systems for the 21st
Century. 7th Regional Environmentally Sustainable Transport Forum in Asia. Bali, Indonesia,
EMBARQ, World Resources Institute (WRI) Center for Sustainable Transport: 52.
In addition to private sector financing of urban transit, another way for national
governments to leverage their own finances and the funding received from international
sources is to tap into local funding sources. The funding sources available to national
governments in this category include land value capture and betterment levies. For
example, in Hong Kong, the Mass Transit Railway (MTR), one of the region's major
property developers, is using profits from new housing, commercial, and retail schemes
to pay for part of the construction cost of new subway lines, allowing them to operate
without any subsidy from the government. This instrument is used in Delhi as well as a
revenue source to finance the operations of the Delhi Metro rail public transit service.
Also in India, the Pune Municipal Corporation has proposed the creation of an urban
transport fund to raise about USD 480 million for financing a new metro rail project.
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Mangioni, Vince (2013). Recurrent Property Taxation: Revenue re-alignment for State and local
government in Australia. Pacific Rim Real Estte Society. Melbourne, Australia: 17.
This paper defines recurrent property taxation as a tax on capital and is divisible into state
land taxes and local government rates. This is applied to Australia. Land taxes were 5
percent of the total taxes collected in Australia in 2008/2009. It notes that in Australia,
exempts residents (which makes it a land tax). The paper also gives the history of the
Australian land tax, as well as distinguishing the state land tax from the local land tax.
Markarian, Molly E. (2007). Flushing Sprawl Down the Drain: Is TIF an Option for Vermont
Growth Center Wastewater Projects? Urban Studies and Planning. Cambridge, MA,
Massachusetts Institute of Technology. Master in City Planning: 104.
This Master’s thesis examines TIF financing in small towns in Vermont. It identifies
value capture as another name for TIF. It applies analysis to wastewater treatment
projects. Concludes that although TIF is plausible for these projects, employing TIF
seems to be neither practical nor suitable for wastewater projects in unsewered towns.
Thesis also suggests sways that the State can assist municipalities in financing
wastewater projects.
Martinez, L. Miguel and Jose Manuel Viegas (2007). Metropolitan Transportation Systems
Financing Using the Value Capture Concept. 11th World Conference on Transportation: 26.
This paper evaluates the legal framework and the economic-financial impact of the use of
value capture solutions in relation to public transport infrastructure in several countries.
It makes a systematic characterization of the public transport infrastructure types that
have used this financing mechanism in the past, and presents a comparative analysis of
results. After this assessment, the possibility of implementing this concept in the Portugal
is assessed, considering its legal framework, identifying the main obstacles for its
adoption in financing urban subway systems, and suggesting solutions to overcome these
obstacles based on the international experience.
Martinez, Luis Miguel Garrido and Jose Manuel Vlegas (2012). "The Value Capture Potential of
the Lisbon Subway." The Journal of Transport and Land Use 5(1): 65-82.
This paper evaluates the legal framework and the economic-financial impact of the use of
value capture solutions in relation to public transport infrastructure in several countries.
It makes a systematic characterization of the public transport infrastructure types that
have used this financing mechanism in the past, and presents a comparative analysis of
results. After this assessment, the possibility of implementing this concept in the Portugal
is assessed, considering its legal framework and identifying the main obstacles for its
adoption in financing urban subway systems. This research uses spatial hedonic pricing
models of the real estate of the region, calibrated on previous stages of the study, to
assess the extent that transportation infrastructure is currently capitalized into the real
73
estate market. The paper uses a Monte Carlo simulation procedure. This potential value
capture estimate is then used to estimate an annual tax that could be charged under
different value capture measures configurations (i.e. land value tax, special assessment).
The results suggest that there is a significant potential of the use of this instrument to
finance the subway infrastructure
Mason-Jones, Kyle and Brett Cohen (2012). Delhi Public Transport. WWF-SA from the Green
House. Cape Town, South Africa, WWF-World Wide fund for Nature: 12.
The Delhi Metro Rail Corporation (DMRC) was established to build and operate the
system, with equal shareholding by the Government of India and the Government of NCT
Delhi. Financing was obtained primarily through international loans with a small
percentage raised through the development and leasing of government properties
provided to DMRC on long-term leases at nominal rents. The financial contribution of
property development is noteworthy and possibly represents an example of value-capture,
in which infrastructure developments capture some of the increased property values. This
appears to have been extremely successful at generating revenue for DMRC, although it
is unclear what proportion of this value was generated by the metro as opposed to
representing a subsidy through property transfer.
Mathur, Shishir (2008). "Impact of Transportation and Other Jurisdictional-Level Infrastructure
and Services on Housing Prices." Journal of Urban Planning and Development 134(1): 32-41.
This paper systematically estimates the impact of selected jurisdictional-level public
infrastructure and services—transportation accessibility, crime, school quality, and
overall quality of municipal-level infrastructure and services on various single-family
housing submarkets. The findings, for transportation infrastructure, suggest that the
decrease in travel time to the central business district is likely to primarily benefit high-
quality housing.
Mathur, Shishir and Adam Smith (2012). A Decision-Support Framework for Using Value
Capture to Fund Public Transit: Lessons from Project-Specific Analysis. M. T. Institute. College
of Business, San Jose State University, San Jose, CA, Mineta Transportation Institute: 200.
With all levels of governments under significant fiscal stress, any new transit funding
mechanism is welcome. Value capture (VC) is one such mechanism. Based on the
“benefits received” principle, VC involves the identification and capture of public
infrastructure-led increases in land value. While the literature has extensively
demonstrated the property-value impacts of transit investments, very little research has
examined the suitability of VC mechanisms for specific transit projects. This report aims
to fill this research gap by examining five VC mechanisms in depth: tax increment
financing (TIF), special assessment districts (SADs), transit impact fees, joint
developments, and air rights. The report is intended to assist practitioners in gauging the
legal, financial, and administrative suitability of VC mechanisms for meeting project-
specific funding requirements.
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Mathur, Shishir and Adam Smith (2013). "Land value capture to fund public transportation
infrastructure: Examination of joint development projects' revenue yield and stability." Transport
Policy 30: 327-335.
This paper examines joint development projects' ability to generate revenue for transit
agencies, including tools of land value capture. Using interviews, and primary and
secondary text, the paper studies five joint development projects and finds that revenue
yield and stability from joint development projects vary widely. The paper argues that
joint development projects benefit from supportive land use and zoning, and clear policy
objectives and political direction. Finally, inflation-adjusted minimum guaranteed
revenues and gross revenue sharing help enhance revenue yield and stability.
Mattauch, Linus (2013, June). "Financing Public Capital through Land Rent Taxation: A
Macroeconomic Henry George Theorem." CESifo Working paper 4280, from www.SSRN.com;
www.CESifo-group.org/wp.
Financing productive public capital through distortionary taxes typically creates a trade-
off: the optimal investment is determined as a compromise between efficiency-enhancing
public investment and market efficiency, but is never socially optimal. In contrast, such a
trade-off can often be avoided if public capital is financed by taxing rents of a fixed
production factor, such as land. Here, we provide a macroeconomic version of the Henry
George Theorem. Specifically, we prove that the socially optimal level of the public
capital stock can be reached by a land rent tax, provided land is a more important
production factor than public capital.
Mattauch, Linus, et al. (2013). Financing Public Capital through Land Rent Taxation: A
Macroeconomic Henry George Theorem. CESifo Working Paper. Munich, Germany: 20.
This technical working paper proves that if land is a more important factor of production
than public capital, then a socially optimal level of public capital can be reached by a
land rent tax.
McAllister, Patrick, et al. (2013). Inside the black box: unraveling the development viability
appraisal process. Reading, UK, Henley Business School, University of Reading: 35.
Various policies (in the UK) have been introduced to capture some of the uplift in land
value that accrues to the landowner when planning permission is granted. The current
incarnation of land value capture is a policy mix that allows local authorities to secure
planning obligations and infrastructure levies. Policy now dictates that targets for
affordable housing, community services and infrastructure payments must be set at levels
that do not compromise the financial viability of proposed developments. In practice this
has proved problematic. The practice of development viability appraisal centers on the
calculation of land value using one of a number of standardized industry-developed
models. There are problems with these models and their use.
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McAllister, Patrick, et al. (2013). "Fit for policy? Some evidence on the application of
development viability models in the United Kingdom planning system." Town Planning Review
84(4): 517-543.
This paper investigates the application and use of development viability models in the
formation of planning policies in the United Kingdom (UK). Particular attention is paid
to three key areas: the assumed development scheme in development viability models,
the use of forecasts, and the debate concerning Threshold Land Value. The empirical
section reports on the results of an interview survey involving the main producers of
development viability models and appraisals. It is concluded that, although development
viability models have intrinsic limitations associated with model composition and input
uncertainties, the most significant limitation is related to the ways in which they have
been adapted for use in the planning system. The article includes discussion of the
Community Infrastructure Levy (CIL) and Threshold Land Value. Value capture might
be included as part of the CIL discussion.
McCluskey, William, et al. (2007). Land Value Taxation: An International Overview. Ulster, N.
Ireland, University of Ulster, School of the built Environment: 29.
This is an international survey land value taxation as of 2007. It found that while land
value as a basis of taxation is conceptually sound but it is of limited use. Further, in
countries where it has been in use, there is a trend to move away from its use. The report
notes some difficulties when historic property or farm land is included in the base and
that the planning/land use zoning system, as currently implemented, falls considerably
short of being able to achieve this. After examining the distinct disadvantages of land
value taxation, the article, overall, is pessimistic about introducing a system of land value
taxation
McCluskey, William J. and Michael E. Bell (2008). Rental Value versus Capital Value:
Alternative Bases for the Property Tax. International Studies Program. Atlanta, Georgia, Andrew
Young School of Policy Studies, Georgia State University: 39.
The focus of this paper is on alternative approaches to determining value based
assessments that include both improved and unimproved capital value and annual rental
value. The term unimproved capital value tends to have been supplemented by either
land value or site value which has a subtly different meaning to that of unimproved value.
Within the valuation context, this requires that land should be valued ignoring any
improvements that may have been made to the land. It argues that the logical base of a
land value tax is not the value of land in some natural state but rather the current value of
land. after these definitions, the paper includes information on how the property tax is
administered in 121 countries. It finds that capital value is the most popular form of
property taxation.
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McCluskey, William J., et al. (2010). Rental Value versus Capital Value. Challenging the
Conventional Wisdom on the Property Tax. R. Bahl, J. Martinez-Vazquez and J. Youngman.
Cambridge MA, Lincoln Institute of Land Policy: 119-157.
This chapter focuses on alternative means of determining value based assessments,
including improved and unimproved capital value and annual rental value. Included in
the unimproved capital value discussion is the discussion of the nuanced meaning of the
term unimproved land value
McCluskey, William J., et al. (2013). A Primer on Property Tax: Administration and Policy.
Ames, Iowa, USA, Wiley-Blackwell.
Book contains 15 chapters by various authors on the property tax with some chapters
containing some discussion of value capture and land taxes.
McCluskey, William J. and Hong-Loan Trinh (2013). "Property tax reform in Vietnam: Options,
direction and evaluation." Land Use Policy 30(1): 276-285.
In analyzing the city finance infrastructure in Vietnam, authors find that current revenue
sources are unsustainable, lack buoyancy and will demonstrate a declining revenue base.
Article advocates a property tax based on land values. Its empirical analysis
demonstrates that the government’s proposal for a land base tax has several structural
problems, but it is a positive step in developing a sustainable revenue source.
McGaffin, Robert (2011). Value Creation? Value Capture? An Assessment of Three Different
Types of Transport Interchanges. 30th Southern African Transport Conference. Pretoria, South
Africa, Document Transformation Technologies cc: 109-120.
This paper examines how to measure the extent of value created as a result of the
provision of transport infrastructure and then outlines the applicability of the use of
global value capture mechanisms in the South African context. Three South African case
studies used. The paper outlines an alternative method to measure the extent of value
creation that is based on a forward looking feasibility approach rather than the historic,
hedonic approach that is conventionally used. Paper identifies three important conditions
of success: clear policy objectives; have market conditions conducive to the creation of
surplus value over and above that needed to make the development viable; and the
institutional and legal frameworks to ring-fence around specific developments.
McGaffin, Robert, et al. (2013 (forthcoming)). "Value Capture in South Africa--Conditions for
their Successful Use in the Current Legal Context." Urban Forum forthcoming.
The value capture process comprises four key elements, the creation of value, the
calculation of the additional value created, the capturing of this value, and the use of
funds resulting from the captured value. This paper concludes that legally, value capture
is possible in South Africa, but that the legislation is vague and inconsistent.
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Furthermore, the article finds that value capture is most successful when the policy
objectives are clear, the mechanisms are correctly defined, favorable market conditions
prevail and solid administrative systems are in place.
McIntosh, James, et al. (2012). Initial Assessment of the Accessibility & New Funding
Opportunities for the Doncaster Rail Project. Australia, Curtin University Sustainability Policy
Institute: 120.
This is an examination of alternative transportation scenarios for the Doncaster corridor
(in Victoria) in Australia. Part of the analysis is an examination of non-traditional
funding opportunities. It identifies a variety of mechanisms to capture increases in land
value and generate a revenue stream. Concepts include active, passive and avoided costs.
Quite sophisticated value analysis study.
Mclaren, John (2012). "Petroleum and Mineral Resource Rent Taxes: Could These Taxation
Principles have a Wider Application?" Macquarie Law Journal, 10: 43.
This law review article argues that a land tax is a form of rent tax imposed on the
unimproved value of land. It then extends the argument by examining a rent tax be
imposed on businesses that have a monopoly and the possibility of an economic rent tax
being imposed on finite resources such as geothermal electricity generation as well as
businesses that have a strong market presence in Australia. The paper concludes by
commenting on the potential for governments to raise additional revenue through a rent
tax and then passing on the benefits to society by possibly reducing personal and
company rates of income tax.
McLaren, John (2013). "The Australian Capital Territory has adopted measures to abolish stamp
duty and impose a land tax on all real property: Will this approach be adopted by other States in
Australia?" Journal of the Australasian Tax Teachers Association 8(1): 101-116.
On July 1, 2012, the Australian Capital Territory imposed a land tax on all commercial
and residential property on a progressive basis, with marginal tax rates applied to
increased land values. As a result of this, there was an increase in government revenue
which allowed the Territory to reduce the stamp tax on real property conveyances. The
article concludes that this approach to the abolition of the stamp tax and the abolition of
the land tax on all property should be eventually adopted throughout Australia.
McMullen, Jeffery S. (2011). "Delineating the Domain of Development Entrepreneurship: A
Market-Based Approach to Facilitating Inclusive Economic Growth." Entrepreneurship Theory
and Practice 35(1): 31.
This is a private sector examination of value capture that might be important to a
theoretical analysis for the public sector. Private profit-seeking always occurs within an
institutional context. This forces the theorist to recognize that value created and value
captured are distinct concepts. Moreover, value captured does not necessarily have to be
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created by the party capturing it, as unproductive and destructive forms of
entrepreneurship demonstrate. Similarly, the creation of value often does not accrue to its
creator. Social entrepreneurship is proposed to be the creation of an organization that
results in a sustained social equilibrium. As such, the concept focuses exclusively on
value creation, neglecting value capture at the organizational level, and is divorced
entirely from any requirements of financial sustainability. This conception is
unsatisfactory.
McNab, Jane and Jacqueline Tuck (n.d.). How the reputation of Georgists turned minds against
the idea of a land rent tax. Australia, University of Ballarat: 22.
This paper discusses the reputation of Georgists generally and compares it with the
behavior and activities of one specific Georgist organization, the Melbourne-based
Prosper Australia. The paper notes that while Georgist organizations have been
promoting land taxes for over 120 years, they have been largely been seen as marginal to
any serious economic debate. The paper concludes that members of the Georgist
movement see a simple, logical ‘big picture’ system, while economists seem to be saying
that things cannot be that simple. Because Georgists generally appear to have not
understood how to relate across the divide, they have largely been discarded from
mainstream academic and policy debate.
Medda, Francesca (2012). "Land Value Capture Finance for Transport Accessibility: A
Review." Journal of Transport Geography 25: 154-161.
Investments in transport thus need to seek new paradigms to obtain financial resources.
Accessibility is a pivotal element in this context because it may induce increases in land
value whereby some or all of these increments in land value resultant from the increase in
accessibility can be captured to recover the capital costs of a transport investment. This
paper reviews the main land value capture finance (LVC) mechanisms (betterment tax,
accessibility increment contribution, and joint development) in relation to increased
transport accessibility. We conclude that, for the successful implementation of a land
value capture finance program to take place, we must always consider the context in
addition to the economic relationship between the life cycle of the transport system, its
profitability and the property market.
Medda, Francesca Romana (2011). Land Value Finance: Resources for Public Transport.
Innovative Land and Property Taxation. R. Sietchiping: 42-52.
Cities have been experiencing escalating growth, especially in developing countries, with
often consequential negative impacts related to transport and, in particular, of car
mobility. Urban mass transit systems are capable of providing capacity and competitive
levels of service for a large proportion of urban travelers. Their impacts of increased
accessibility, i.e. the increase in land value, can be captured, and returned to the society
from which the investment has been sourced. This chapter reviews how different
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mechanisms of land value capture (betterment tax, tax increment finance and joint
development) can be integrated in order to finance urban mass transit systems.
Medda, Francesca Romana (2012). Financial Mechanisms for Historic City Core Regeneration
and Brownfield Redevelopment. The Economics of Uniqueness. G. Licciardi and R.
Amirtahmasebi. Washington, D.C., The World Bank: 213-243.
This chapter analyzes four models of financing urban heritage brownfields: public-
private partnerships, land value capture, urban development funds, and impact investment
funds. In discussing land value capture, the author argues that it can be used to finance a
broad range of urban development and regeneration project types, including in historic
districts. Further argues that land value capture is equitable and can be progressive. It
can facilitate the development of abandoned or underutilized urban properties along with
discouraging urban sprawl. However, an annual levy on land value may instigate price
spirals and distort land supply, which could be a significant problem in developing
countries with high inflation and low economic growth rates. Gives case study of row
houses in Istanbul, Turkey.
Medda, Francesca Romana and Marta Modelewska (2011). Land value capture as a funding
source for urban investment: The Warsaw metro system. Warsaw, Poland, Sprawne Panstwo
Program, Ernst & Young: 68.
Infrastructure demand in Central and Eastern Europe has been growing rapidly, notably
in the urban transport sector.. One innovative and increasingly accepted way to fund
public transport is through Land Value Capture finance (LVC). In this report the authors
show how the fiscal reform and urban infrastructure investment concepts are significantly
connected. Urban infrastructure investment induces increases in land value, thus it is
possible to recover the capital costs of urban investment by capturing some or all of the
increments in land value resultant from the investment. This may be accomplished
through a fiscal mechanism such as land value finance. Fiscal decentralization reform,
based on the subsidiarity principle, may be the pivotal point in the implementation of
land value capture in Poland because the revenue generated by land value capture can be
earmarked by local authorities to fund urban expenditure. In our case study, we estimate
the capitalized evaluation of the extension line 2 in Warsaw by calculating the effect of
metro access on property price in two selected districts in Warsaw: The capitalization
benefit of the metro access is analyzed through hedonic price modelling. In both districts,
the presence of transport infrastructure has a positive impact on house prices.
Mei, Todd S. (2009). "Economy of the Gift: Rethinking the Role of Land Enclosure in Political
Economy." Modern Theology 25(3): 441-468.
This analysis extends the role of land as a factor of production by examining land as a
gift that bestows and offers determinations of our “being.” Uses the enclosure
movement in England as an example. Article address theological and economic
dimensions and demonstrates that land understood as gift is consistent with certain
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theological positions. Land is considered a divine gift which the author correlates with
George’s understanding that land is given and economic practice cannot assume
unilateral human ownership of it. If land ownership has profit as the validation of its
speculative practice in seeking gain in land value, then its alternative lies in redirecting
the increment of this value. Concludes by showing how George’s political economy of
land taxation fits within a theological understanding of gift.
Mei, Todd S. (2011). "An Economic Turn: A Hermeneutical Reinterpretation of Political
Economy with Respect to the Question of Land." Research in Phenomenology 41(3): 297-326.
This article, analyzing Ricardo and George, examines land as a factor of production and
concludes that land as an entity classifiable as property and capital is misunderstood in
the history of political economy. Rather, land’s ontological role in its bound with nature
(derived from Heidegger) argues that economics needs to account for it in a new way.
Then a land value tax is analyzed in this new way, concluding that if economic rent arises
because of use, the use of rent as a form of public revenue falls into the category of
counter-gift, which can be used in such a way that takes the being of land into account.
This also forces a redefinition of the concept of land ownership.
Merk, Olaf, et al. (2012). Financing Green Urban Infrastructure. OECD Regional Development
Working Papers 2012/10, Organization for Economic Co-Operation and Development: 65.
This paper presents an overview of practices and challenges related to financing green
sustainable cities. Cities are key investors in infrastructure with green potential, such as
buildings, transport, water and waste. Their main revenue sources, such as property taxes,
transport fees and other charges, are based on these same sectors. At the same time,
increased public constraints call for a mobilization of new sources of finance and
partnerships with the private sector. This working paper analyses several of these
sources: public-private partnerships, tax-increment financing, development charges,
value-capture taxes, loans, bonds and carbon finance. The challenge in mobilizing these
instruments is to design them in a green way, while building capacity to engage in real
co-operative and flexible arrangements with the private sector.
Mertz, Kaycee Elizabeth (2008). Equitable Development Tools to Mitigate Residential
Displacement Due to Gentrification: Case Studies of Three Atlanta Neighborhoods. Urban and
Regional Planning. Gainesville, Florida, University of Florida. MA in Urban and Regional
Planning: 118.
Value capture programs allow government to fund transit construction and operation,
finance transit-oriented development, or initiate infrastructure efforts that make private
development possible. Methods of value-capture include land acquisition and joint
development projects in which public and private resources are used for a development
that benefits both sectors. Some transit agencies acquire parcels near future station sites
that they later lease to private businesses. Case studies of Washington D.C. and Atlanta.
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Metropolitan Studies Program (2011). Financing Smart Growth. The Brookings Institution.
Washington, D.C.
This PowerPoint presentation discusses the requirements for Smart Growth financing,
identifies the increased costs and risks of smart growth, discusses three time tranches of
financing, and demonstrates how value capture techniques and options can be
incorporated in smart growth financing.
Mikesell, John L. and C. Kurt Zorn (2008). Data Challenges in Implementing Market Value
Property Tax: Market and Market-Informed Valuation in Russia, Ukraine, and the Baltic States.
Making the Property Tax Work. R. Bahl, J. Martinez-Vazquez and J. Youngman. Cambridge
MA, Lincoln Institute of land Policy: 183-206.
This chapter identifies some of the characteristics of an effective and efficient property
tax system: long-term tenancy; unique identification of property parcels and those who
hold the rights to the property; a scheme for the evaluation of the parcels; a method of
collecting the tax; and enforcement mechanisms. It notes that the meeting of these
characteristics pose various degrees of challenges for transitional and developing
countries. The authors then briefly examine Estonia, Latvia, Lithuania, Russia, and
Ukraine with respect to these characteristics. There are specific comments on land value
evaluation.
Miller, Matthew and Chris Hale (2011). Innovative Finance for New Rail Infrastructure. 34th
Australasian Transport Research Forum 2011. Adelaide, Australia.
This paper takes an initial look at the potential role of value capture and other innovative
measures in underpinning transit infrastructure expansion. This paper reviews some of
the basic prospects for value capture and financial innovation for future transit
infrastructure provision within Australia - set against a benchmarking of the level of
funding that innovative financial mechanisms have provided to selected transit
infrastructure projects internationally in recent times.
Millmow, Alex and John Pullen (2012). "The forgotten man: J.M. 'Pete' Garland." History of
Economics Review 55(Winter): 47-61.
This is a biographic article on an Australian economist who was a follower of Henry
George and applied George’s work to Australia. It contains a detailed description of a
land-value tax and its implementation.
Milotti, Alberto and Noemi Patumi (n.d.). La “cattura del valore” come metodo di finanziamento
per le infrastrutture di trasporto: tre casi a confronto. Milano, Italy, Universita Bocconi: 21.
This paper, written in Italian, investigates land value capture as a technique to finance
transportation infrastructure. Assumes that the externalities of increased property value
can be monetized through their impacts on the value of land. Three case studies (TIFs,
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Copenhagen, and Umbria, Italy) are analyzed to discover the strengths and weaknesses of
this technique. Note: only part that is in English is the abstract. The rest is in Italian
Mirrlees, James, et al. (2012). "The Mirrlees review: A Proposal for Systematic Tax Reform."
National Tax Journal 65(3): 655-684.
The land value tax is discussed as part of a comprehensive tax reform package for the
UK. The study makes a strong case for a land value tax (which is identified as a tax on
pure rent). Suggests that for businesses, a land value tax for business and agricultural
land should be implemented (noting that there are currently no land value taxes on
business in the UK). The land value tax on business would replace the corporate income
tax and taxes on the value of business property. The study does note the importance of
administrative feasibility.
Misczynski, Dean J. (2012). Special Assessments in California: 35 Years of Expansion and
Restriction. Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA,
Lincoln Institute of Land Policy: 97-115.
This chapter explains the development of land secured financing (sometimes called land-
based financing or dirt bonds) following California’s Proposition 13 in 1978. It defines
land-secured financing, as understood in California, as a means of raising money for
public capital improvements and sometimes services by requiring a set of property
owners, usually within a specific geographic district, to pay an annual (or sometimes
more frequent) amount of money as their share of the project’s cost. This chapter
reviews the creativity, politics and reactions to this tool in California.
Monk, Sarah, et al. (2013). International Review of Land Supply and Planning Systems, Joseph
Roundtree foundation: 111.
This research explores whether policies and mechanisms that work well in other countries
might be introduced or adapted to help unlock land supply and therefore new housing
delivery in the UK. It partially concludes that given that permission gives a large increase
in land value in many circumstances, the case for some form of capture, particularly to
pay for other sources of uplift such as infrastructure provision, is strong. Even so, land
value capture works best in periods of economic growth, and is difficult or impossible
when land values are falling. However, it is not related to ability to pay and has proved
extremely difficult to implement over the economic cycle. A particular problem is that in
old age many homeowners are income poor and property rich which is a disadvantage. A
further drawback is the difficulty of estimating the unimproved value of land that is
already developed.
Moore, Andy (2012). Progress: Sharing the Earth So All May Prosper. Progress. Melbourne,
Australia, Prosper Australia, Inc.: 52.
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Series of articles (in one journal--Progress), all supportive of land taxes and value
capture. Mostly focused on Australia. Range from infrastructure finance to
environmentalism to Australian history of land taxes.
Morgan, O. Ashton and Stuart E. Hamilton (2010). "Estimating a Payment Vehicle for Financing
Nourishment of Residential Beaches using a Spatial-Lag Hedonic Property Price Model."
Coastal Management 38(1): 65-75.
Beach nourishment projects are common methods for coastal states to protect beaches
and property from the natural erosive process. However, while the beneficiaries of beach
nourishment tend to be local property owners and recreators, projects are typically funded
at the state level. Based on the benefit principle, as local residents receive more of the
erosion protection benefits of the nourishment projects, we estimate a value capture tax,
designed to levy the financing burden in a manner that approximates the distribution of
benefits. The benefits of nourishment projects to coastal property owners are estimated
using the results from a spatial-lag hedonic model that controls for viewshed effects.
Morichi, Shigeru and Surya Raj Acharya (2013). Conclusion: New Perspective and Policy
Recommendations. Transport Development in Asian Megacities. S. Morichi and S. R. Acharya.
Berlin, Springer-Verlag: 255-265.
There is a good stock of theoretical and empirical knowledge to address various urban
transport problems, leading to important policy insights and practical policy measures.
These are useful and potentially effective to address the transport problems in Asian
megacities. However, the urban transport condition in these megacities is continuously
degrading. Concludes that value capture schemes should be adopted to finance transit
projects where possible.
Moss, Laurene S. (2010). "The Henry George Theorem and the Entrepreneurial Process:
Turning Henry George on His Head." American Journal of Economics and Sociology 69(1):
563-585.
Offers a realistic appraisal of “duplicitous” behavior of real estate developers (who are
called entrepreneurs) in the context of the modern regulatory state, Argues that successful
real estate developers must become “political entrepreneurs” if there are to complete their
projects in a timely way and capture business profits. Also argues that for George, the
moral question of monopoly profits was as important as economic mechanisms.
Describes the Henry George Theorem as an equilibrium in which the region’s total utility
is maximized within an optimal population has moved to the neighborhood of a CBD. A
scientifically engineered land value tax is levied to finance the infrastructure
improvements that provide those same taxed individuals with the financial means to pay
the tax.
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Moss, Laurence S. (2010). "The Henry George Theorem and the Entrepreneurial Process:
Turning Henry George on his Head." American Journal of Economics and Sociology 69(1): 563-
585.
The article reinterprets the Henry George Theorem in terms of entrepreneurship. It
claims to offer a realistic appraisal of the duplicitous behavior of entrepreneurs in the
context of the regulatory state. The author argues that the Henry George Theorem makes
the political entrepreneurship of real estate developers intelligible. Concludes by arguing
that not all gains in real estate come from the "brainless speculator" holding on to land--
but rather that speculation is an important part of the entrepreneurial process.
Mueller, Elizabeth J. and Sarah Dooling (2011). "Sustainability and vulnerability: integrating
equity into plans for central city redevelopment." Journal of Urbanism: International Research on
Placemaking and Urban Sustainability 4(3): 201-222.
Cities around the US are promoting redevelopment efforts in central city neighborhoods
in order to foster more-sustainable development patterns. This paper argues that such
plans must be grounded in an assessment of the current conditions and existing
populations in these neighborhoods. Taking the existing community into account would
change the calculation of public costs and benefits. Benefits would incorporate the value
of retaining and building on existing strengths of the community. While the increased
intensity of development would produce the same type of fiscal benefits, the amount of
these benefits would likely be less, since redevelopment would be more likely to
minimize demolition of existing structures and would require some value capture in order
to subsidize housing affordable to current residents. A case study of the planning process
for a transit-oriented redevelopment plan for a central neighborhood in Austin, Texas,
illustrates the difference between current approaches and an alternative approach.
Mulley, Corinne (2014). "Accessibility and Residential Land Value Uplift: Identifying Spatial
Variations in the Accessibility Impacts of a Bus Transitway." Urban Studies 51(8): 1707-1724.
New public transport investment can improve accessibility for existing and new users of
the urban transport network and this can lead to land value uplift with uplift benefits
being distributed in relation to the proximity of the location of the property to the
infrastructure. This paper quantifies land value uplift and its spatial distribution for
accessibility to different destinations for residential properties around a new-build
Liverpool Parramatta transitway for buses in a suburban area of south-west Sydney,
Australia. Geographically weighted regression (GWR) is used to take account of spatial
dependency in the estimation process with the results being presented in map form. The
analysis has demonstrated significant spatial variation in accessibility benefits suggesting
that a uniform land value capture tax would give rise to significant winners and losers,
relative to the land value uplift experienced. The distributional effect of a uniform tax
would need to be carefully investigated as it could be highly regressive, highly
progressive or neutral depending on the socioeconomic characteristics of the areas
benefiting from uplift.
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Mulligan, Kate, et al. (2013). Revenue Tools for Transit Expansion: A Screening Level, Equity-
Based Health Impact Assessment. Toronto, Canadian: 29.
This report presents the results of a rapid, screening-level, equity-based health impact
assessment of funding tools being considered to support transportation expansion in the
Greater Toronto and Hamilton Area (GTHA). The screening exercise involved reviewing
each proposed revenue tool according to health evidence related to the following criteria:
1. Promote health of the whole population 2. Promote health equity. The report finds
value capture as being positive or neutral in promoting the health of the whole population
and negative and neutral in promoting health equity.
Murakami, Jin (2012). Transit Value Capture: New Town Development Models and Land
Market Updates in Tokyo and Hong Kong. Value Capture and Land Policies. G. K. Ingram and
Y.-H. Hong. Cambridge MA, Lincoln Institute of Land Policy: 285-320.
After noting that private rail companies in Hong Kong, Tokyo and Singapore have made
substantial profits without assistance from government, the chapter analyzes the value
capture techniques that were implemented, highlights the characteristics of the new town
codevelopment cases selected, examines the market location shifts and land value
changes that occurred along the case corridors and draws lessons for other global city
regions to help them finance megatransit projects.
Murakami, Jin and Robert Cervero (2010). California High-Speed Rail and Economic
Development: Station-Area Market Profiles and Public Policy Responses. Berkeley, CA,
University of California, Berkeley: 33.
Discusses value capture as a tool to help finance California's High Speed Rail Project.
Murakami, Jin and Robert Cervero (2010). Environmental and Other Co-benefits of Developing
a High Speed Rail System in California: A Prospective Vision 2010-2050. Symposium:
California High Speed Rail and Economic Development. Berkeley, California, Environmental
and Other Co-benefits of Developing a High Speed Rail System in California: A Prospective
Vision 2010-2050: 33.
Investment in California’s proposed High-Speed Rail (HSR) system has been justified
partly on economic grounds, as a potential stimulus to employment and income growth.
However, international experiences raise questions about the net economic development
impacts of these costly mega-investments. This paper examines job and labor market
profiles of 26 proposed HSR station-areas in California in 2002 and 2008. These trends
are compared to experiences around Shinkansen HSR stations in Japan. Empirical
findings on corridor-level job distributions, cross-industrial typologies, and station-level
density gradients suggest that the new HSR project is likely to induce knowledge- and
service-based business agglomeration benefits, though these are mostly limited to large,
globally connected cities. Growth can also shift to HSR-served edge cities, airports, and
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leisure-entertainment hubs. Such shifts, however, could be at the expense of small
intermediate cities. Four policy responses are recommended in this regards. Value
capture practices should promote local land development objectives (e.g., improve
livability), discourage excessive levels of rent-seeking investments, and maximize long-
term profits.
Murakami, Jin and Robert Cervero (2012). High-Speed Rail and Economic Development:
Business Agglomerations and Policy Implications. Berkeley, California, University of
California.
With a finite, limited supply of land near High Speed Rail (HSR) stops, rents and
property values will rise as companies bid up the price of doing business in these
preferred locales. HSR authorities should aggressively pursue joint development
opportunities to recoup the costs of mega-transit projects from the accessibility and
agglomeration benefits that would be capitalized largely into commercial land values
near major intercity terminals. Properly designated value capture applications for HSR
projects could balance global corporate profits and local public interests, discourage
excessive levels of rent-seeking investments, and maximize long-term revenue streams
by encouraging high-density, mixed-use, and amenity property packages around HSR
terminals. Useful lessons can be drawn from experiences in Hong Kong under its
Rail+Property program.
Murphy, James T. and Seth Schindler (2011). "Globalizing development in Bolivia? Alternative
networks and value-capture challenges in the wood products industry." Journal of Economic
Geography 11(1): 61-85.
Although sometimes using value capture at the firm level and value capture at the
institutional level interchangeable, this article has useful definitions and conceptual
frameworks. Value creation comes with a firm and region’s ability to participate in and
attract value-added activities demanded in international markets. Value enhancement
refers to the processes of industrial upgrading and technological learning enabled through
ties to global production networks. Value capture occurs when local institutions and non-
firm actors are able to retain and channel the resources created into investments vital for
long-run regional development (e.g. infrastructure, schools). For value capture to become
more widespread, significant and sustainable, Bolivian policy makers must develop
institutions, capacity-building initiatives and policy strategies that are tailored to the
needs and realities of the firms operating within a particular type of production network
Murphy, Robert J. Jr. (2011). Virtues Unfulfilled: The Effects of Land Value Taxation in Three
Pennsylvanian Cities. Urban and Regional Planning, University of Florida. Gainesville, Florida,
University of Florida. Master of Arts in Urban and Regional Planning: 154.
This Master's thesis discusses land value taxation as a potential reform of the traditional
property tax. It attempts to examine the viability of this tax reform as an aid to economic
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development. Using 1990 and 2000 census data, it attempts to determine if the
theoretical effects of land value taxation occurred in three case studies of Pennsylvanian
cities. A categorical examination of ten variables revealed that the theoretical
expectations matched observations in only one instance.
Nelson, Joshua S. (2008). Stuck with the Bill, But Why? An Analysis of the Portuguese Public
Finance System with Respect to Surface Transportation Policy and Investments. Department of
Urban Studies and Planning; Department of Civil and Environmental Engineering. Cambridge,
MA, Massachusetts Institute of Technology. Master in City Planning; Master of Science in
Transportation: 145.
Finance mechanisms that capture the externalities of transportation activity are well
known but not often employed. Some capture positive externalities: new transportation
activity often increases the value of surrounding properties. Land value capture seeks to
expropriate a portion of that increase and reinvest it into transportation improvements.
Taxes or fees are therefore levied on landowners who will reap partial benefit from the
improvements. These owners are often identified based upon the predominant mode for
accessing the improvements. As governments find it more difficult to secure the revenue
necessary to fund transportation improvements, they will move toward other mechanisms
that are better at capturing more of the cost, including value capture. A government’s
ability to employ these emergent mechanisms will be a function of political plausibility,
administrative capacity, and transaction costs.
Newman, Peter (2012). "Briefing: Peak car use--what does it mean for urban design and
planning?" Urban Design and Planning 165(DP4): 197-200.
The trends in urban car use are now demonstrating a new phenomenon where a peak has
occurred and rapid declines are setting in. The need for urban designers and planners to
change their practice is suggested. Among these suggestions is to ensure that quality
electric transit is the key facilitator of future urban growth. A new factor in ensuring this
happens is ‘value capture’. This concept also is not new, but it is still rare in most cities,
who do not see the benefits in private sector involvement in funding, building and even
operating mass transit. The increased value in land around stations of between 20 and
50% is hypothecated from land taxes at local, state and national level, and directed into
the building and operation of the transit system. In this way an integrated system is
guaranteed.
Newman, Peter (2012). Doncaster Rail: What are its prospects? Perth, Western Australia, Curtin
University Sustainability Policy Institute: 36.
The Doncaster Rail Accessibility and new funding options project has two parts: the first
is an assessment of the accessibility benefits associated with ten different scenarios for
providing public transport in the Doncaster corridor along with value capture funding
opportunities; the second is an analysis of the prospects and possibilities for a Doncaster
rail system using the best scenario. The key findings for value capture in the report
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consist of: This new high quality transit catchment area will significantly improve in land
value as a result of the monetized accessibility benefits of being within the catchment.
This increased value can be captured by new funding practices that ‘ring fence’ and
hypothecate some of this increased land-based tax revenue into a Fund to help pay for the
transit.
Newman, Peter (2012). "Peak Car Use--What Does It Mean for Urban Design and Planning?"
Proceedings of th3 Institute of Civil Engineers, Urban Design and Planning 165(DP4): 197-200.
The trends in urban car use are now demonstrating a new phenomenon where a peak has
occurred and rapid declines are setting in. Some of the causes of peak car use are
suggested, but more importantly the need for urban design and planning to change their
practice is suggested. This should include: first, not increasing road capacity and using
the road space freed up for sustainable transport improvements, especially walkability;
second, planning for 50% reductions in cars with all the growth being electric vehicles;
third, ensuring quality electric transit is the key facilitator of further urban growth and is
tied into it through value capture; and fourth, facilitating green urban renewal as the main
game in urban planning to achieve the polycentric city. In particular, for part three, a
factor in ensuring this happens is ‘value capture’. This concept is not new, but it is still
rare in most cities, who do not see the benefits in private sector involvement in funding,
building and even operating mass transit. The increased value in land around stations of
between 20 and 50% is hypothecated from land taxes at local, state and national level,
and directed into the building and operation of the transit system. In this way an
integrated system is guaranteed.
Newman, Peter (2012). Why Do We Need a Good Public Transport System? Western Australia,
Curtin University Sustainability Policy Institute: 87.
This paper explains, in Section E, how value capture techniques can influence the
possibilities of successful public-private-partnerships, around rail based, transit oriented
developments. These techniques can then help pay for the rail system. Argues that
building a rail line entirely as a transportation device by the public government might
mean that there is no consideration of integrating rail use and land use as a way of paying
for the system. Concludes that for TODs, contracts need to be created between all parties
that tap into the land value associated with the transit system. This creates a mutually
beneficial relationship.
Newman, Peter, et al. (2013). "Peak Car Use and the Rise of Global Rail: Why This Is
Happening and What It Means for Large and Small Cities." Journal of Transportation
Technologies 3: 272-287.
If rail is going to continue to grow and car use to decline then a range of sophisticated
value capture mechanisms will be needed for each city to make the most of this
opportunity for funding. One new approach is value capture. Rail infrastructure increases
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land value due accessibility benefits. This value can be captured and used to help fund the
infrastructure. There is a five-step process for value capture.
Newman, Peter and James McIntosh (2013). Delivering efficient public infrastructure: Some
new trends. Australia Adjusting: Optimising national prosperity. V. FitzGerald and N. Taylor.
Melbourne, Australia, Committee for Economic Development of Australia: 77-85.
This chapter describes the changing patterns of private and public transport and the key
criteria that should underpin public infrastructure investment. This contribution analyzes
new approaches to valuing infrastructure, including agglomeration benefits and avoidable
land development costs. It also describes how value capture models could recognise the
private benefits of the public provision of infrastructure and draw on those to help fund
appropriate levels of delivery.
Newman, Peter and Robert Salter (2011). Mass Transit. Technologies for Climate Change
Mitigation. R. Salter, S. Dhar and P. Newman. Roskilde, Denmark, UNEP Risø Centre on
Energy, Climate and Sustainable Development: 48-57.
The new term ‘Development Assisted Transit’ (DAT) describes the process whereby land
developers fund all or part of the cost of the transit service integrated into the TOD, in
return for which they earn extra income from the enhanced value of the properties there,
given their closeness to transit. The idea of value capture lies behind the concept of DAT
but is also used for any infrastructure or amenity improvement. Governments, businesses
and home buyers all recognize that an address near a transit station is a good one, and the
value of such property rises accordingly. If the land is zoned for higher-density
residential use or mixed use the value can be even higher.’ And this can be used to help
finance not only the development of mass transit through DATs but also special
community services or social housing due to the extra value in the land provided by the
transit
Nie, Sisi (2013). Land Value Capture through Market-Oriented Public Land Leasing: The Case
of Metro System Finance in Changsha City, China. Institute for Housing and Urban
Development Studies. Rotterdam, the Netherlands, Erasmus University. MSc: 75.
This research mainly focuses on one land values capture instrument, public land leasing.
This research examines China, which introduced a market-oriented land leasing
mechanism called bidding, auction and listing leasing system. This research intends to
examine land markets with different land transfer methods in Changsha city. This
research is descriptive research, which intends to comprehend how market-oriented
public land leasing performed. There are three findings. First, bidding, auction and listing
leasing approaches abide by market rules and generate more revenue than other means.
Second, land value can be affect by metro implementation, which precisely matches the
notion from land value capture that government sharing the incremental land value for
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public goods is feasible. Third, land revenue is adequate for current metro construction;
however, for a long-term metro project, land revenue is not enough and financing
diversification is necessary.
Oates, Wallace E. and Robert M. Schwab (2009). The Simple Analytics of Land Value Taxation.
Land Value Taxation. R. F. Dye and R. W. England. Cambridge MA, Lincoln Institute of Land
Policy: 51-71.
This chapter formally explores the structure and characteristic of land value taxation,
particularly its effects on economic decisions and outcomes. It concludes that the full
burden of the land value tax falls on the owner of the land (and no one else) and that a
land value tax does not distort economic choices, implying there is no excess burden and
the timing of development is not affected.
O'Brian, William E. Jr. (2011). "Distributive Justice and the Sovereignty Principle." Oxford
Journal of Legal Studies 31(1): 1-21.
Uses the land tax as a possible solution to some problems associated with Rawls. Argues
that the Henry George single tax requires each person to compensate the rest of the
community for the harm caused by depriving them of the use of natural property taken.
Further shows that the basis for a land value tax extends beyond this reciprocal argument,
since it is the most efficient form of tax and the value of land is influenced by
government activities. Also argues that at least a major portion of the proceeds of a land
value tax should be used to fulfill moral obligations to the poor.
O'Connell, Alan (2012). Capturing the Rust Belt's Potential. 13 Strategies for Rust Belt Cities. K.
Ezell. Columbus, Ohio, City and Regional Planning Program. The Ohio State University: 47-53.
This report focuses on exploring innovative transit funding solutions for Cleveland, and
other Ohio cities. One possible way to finance much-needed transportation projects is
through various value capture taxing methods. City projects are funded over time
through increased property values within the project’s established impact area. Some of
the value added to properties within the impact area, which is the direct and indirect
result of the city’s investment, is “captured” through special taxes. Depending on the type
of project, the amount that property owners pay in value capture tax is abundantly offset
by the increases in property values. If no value is added, no additional tax is collected.
For this reason, value capture has the greatest success in areas that are underutilized and
exhibit high potential for increased property values. Rust Belt cities could even purchase
the land themselves, build the improvement project, and then sell the same land at a
higher price.
Office of Sustainable Communities, Smart Growth Program (2013). Infrastructure Financing
Options for Transit-Oriented Development. E. P. Agency. Washington, D.C., Environmental
Protection Agency, Smart Growth: 251.
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This book discusses several financing options for Transit Oriented Development. There
is a long discussion of value capture techniques and several case studies illustrating these
techniques. It notes that value capture mechanisms are typically established by a local
government in accordance with state law. They sometimes require a vote by the affected
property owners. Depending on the tool, value capture can entail the creation of a new
assessment, tax, or fee (e.g., a special tax or development impact fee); the diversion of
new revenue generated by an existing tax (e.g., tax-increment financing); or a revenue-
sharing agreement that allows a government agency to share some of the revenue
generated by developing publicly owned land (e.g., joint development). Value capture
tools are generally most applicable to strong real estate markets because they depend to
some extent on new development or property value appreciation to generate revenue.
O'Flaherty, Brendan (2012). Housing Subsidies and Homelessness: A Simple Idea. T.
Giannuzzi. Calgary, Canada, School of Public Policy, University of Calgary. 5: 22.
Since OHRHA (Optimal homelessness reducing home allowance) is a Pigovian subsidy,
it should be financed like any other Pigovian subsidy—by a lump sum tax—a land value
tax. Currently, Calgary taxes both land and improvements. A land value tax falls only
on land and exempts improvements. The appeal of the land value tax is that it does not
distort decisions. To non-economists, the appeal of a land value tax is fairness—the land
value tax makes you pay for what you get, not what you give. The fairest land value tax
to finance OHRHA is on the value of the increment to land value that OHRHA causes. A
tax proportional to the land value increments will raise the full cost of OHRHA and still
leave landowners better off than before OHRHA.
O'Keefe, Myles (2011). Affordable Housing and Transit-Oriented Development: A comparison
of Observed Policy findings with those of the City of Tampa. Urban and Regional Planning.
Gainesville, Florida, University of Florida. MA: 116.
This research examines the growing connection between housing and transportation.
During this time as cities propose and implement more advanced transit networks, they
are simultaneously seeing a growing need for affordable housing. This research looks at
Tampa, its identified peer cities and their policies and programs that support transit-
oriented developments and affordable housing. Price-Waterhouse Coopers’ statements on
the relative inexpensiveness of land now, and the greater investment promise of infill
sites points the way to programs based on tax increment financing (TIF), overlay
districts, and value capture.
Olavarria, Juancarlos Rafael Landaure (2010). Influence of land value in the profitability of low-
income housing projects in periphery of Lima. Urban Management and Development.
Rotterdam, The Netherlands, Lund University. Master Degree in Urban Management and
Development: 107.
This research investigates the influence of land in the total profit obtained by developers
from social housing projects that are subsidized by government. This research is
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quantitative and exploratory, with case studies (eight projects) about Techo Propio, a
Peruvian social housing program. The research question asks if the profit because of the
land strategy (to buy a plot and wait until the price increases without doing anything else)
is greater than the profit because of the project itself (the cash flow obtained for the effort
to sell and build dwellings). The methodology consists mainly in the use of discounted
cash flow analysis as a financial tool to explore the profitability of each project. Using the
selected indicators, the findings show that only three projects out of eight have greater
unitary net present value because of land than because of the project itself. A land
strategy based only on buying a plot and waiting time to increase its price it is not
possible in Lima.
Olsen, Silvia J., et al. (2011). Funding Public Transport in Norway. Oslo, Norway,
Transportokonomisk institutt, Stiftelsen Norsk senter for samferdelsforskning: 102.
Author's abstract states that they do a review of property development as a way of
funding in the form of value capture solutions to finance infrastructure. Available only in
Norwegian.
Olubode-Awosola, Femi (2009). Agricultural land tax and farm-level resource use and output
supply response. International Association of Agricultural Economists. Beijing, China: 15.
This conference paper uses a linear programming model to estimate effects of an
agricultural land tax in South Africa. The results indicate that the implementation of a
land value tax of 2 percent has only marginal effects on land use and output supply, with
the highest effects on irrigated farming. Concludes that the land tax must be dynamic
with respect to the market value of land in each community and should not be general but
rather related to variables that affect land value (e.g., fertility, natural resources).
Olubode-Awosola, Femi (2010). "Agricultural land tax and farm-level land-use changes and
output supply response." China Agricultural Economic Review 2(1): 79-93.
This is a programming model for land use changes and output supply responses to an
agricultural land tax in South Africa. The model finds that the changes are marginal;
however, it also finds that if a land tax is levied, it may discourage investment on
irrigation facilities and there may effect irrigated farming. This is a non-econometric
approach.
O'Siochru, Emer (2004). Land Value Tax: Unfinished Business. A Fairer Tax System for a
Fairer Ireland. B. Reynolds and S. Healy. Dublin, Ireland, CORI Justice Commission: 23-58.
This chapter argues, in an Irish context, that there should be a tax shift from taxes on
human labor, profits, transactions and capital to taxes on natural resource use with
redistribution based on equity. It concludes that the final paradigm shift to a universal
land value tax (for local governments) will be achievable.
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O'Sullivan, Anthony and Kenneth Gibb (2012). "Housing Taxation and the Economic Benefits of
Homeownership." Housing Studies 27(2): 267-279.
This paper examines the possibility of reforming housing taxation in the UK. Under the
assumption of looking for a neutral tax, the authors discuss land value taxation in the
form of an annual tax on the rental value of land in its prevailing use. They argue that
under a land value tax, unearned economic rents would be taxed with no exemptions,
while structures and developments on land would be untaxed. A land value tax would be
progressive with respect to wealth but regressive in terms of current income. Designing
and implementing this tax would involve resolving some major practical and technical
problems, including a revaluation of all land in the UK. It would also face major political
problems.
Pacewicz, Josh (2013). "Tax increment financing, economic development professionals and the
financialization of urban politics." Socio-Economic Review 11(3): 413-440.
This article explores the political mechanism of financialization, by drawing upon an
ethnographic study of economic development in two Rust Belt cities and analyzing usage
of tax increment financing (TIF), a practice that allows cities to securitize projected
increases in property tax receipts and create bonds similar to structured asset-backed
securities (e.g. mortgage-backed securities). TIF structures other roles that development
professionals play by giving them incentives to use TIF in ways that are not aligned with
the city’s fiscal outlook and lock them into ever-higher rates of TIF spending. This
analysis illustrates a recursive relationship between financialization and the state.
Padillia, Sandra (2010). When the Train Comes: Exploring the use of property and land
acquisition funds to ensure affordability in future transit station areas. Department of Urban
Studies and Planning. Cambridge, MA, Massachusetts Institute of Technology. Master's of City
Planning: 97.
This thesis addresses the question of what happens when the value of a significant public
investment can be captured by the private market to limit equitable access to this public
good. Living in walkable, transit-accessible neighborhoods has many economic, health
and social advantages. Yet, as demand for housing in this type of neighborhood increases,
low-income people can be "priced out" of these desirable locations. Over the past decade,
a growing number of partnerships made up of non-profit organizations, private
foundations, and public agencies have turned to Transit - Oriented Development (TOD)
land acquisition funds to preemptively preserve affordability in future transit station
areas. This thesis examines the role of land acquisition near transit through three case
studies: Denver FastTracks, Atlanta BeltLine, and the Boston Fairmount Corridor.
Pagano, Michael A. (2011). Funding and Investing in Infrastructure. Washington D.C., Urban
Institute: 12.
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Finding resources for infrastructure is part of government planning and budgeting.
Pricing is the key element to funding infrastructure policy. There are two types of
infrastructure deficits. One is inadequate investment, the other is inadequate maintenance.
The infrastructure deficit accrued because of neglect and bad pricing signals. It’s
politically painless in the short term to neglect spending funds on infrastructure
maintenance, leaving the consequences to the next administration. Possible solutions
include adopting value-capture tools.
Partovi, Lauren Neda (2013). Creative Financing & Strategies for Mixed-Income Transit
Oriented Development in Dallas, Texas. Community and Regional Planning. Austin, Texas,
University of Texas. MSc. in Community and Regional Planning: 84.
This study evaluates the current environment for mixed-income transit oriented
development along DART rail within the city limits of Dallas. A University of North
Texas study in 2007 evaluated land value increases proximate to DART rail stations and
attributed $4.26 billion in development generated by 20 TOD around DART projects
from 1999 through 2007. These numbers are significant when considering the concept of
value-capture, where funding for transit and its related infrastructure can harness the
increase in land value for paying for operating costs associated with rail.
Passant, John and John McLaren (2012). "The "review of Australia's future tax system":
implications for local government in Australia and recommendations." Local government Law
Journal 17(4): 243-258.
This article discusses the potential for a land tax to increase revenues for local
governments in Australia. This is done in the context of a set of recommendations for
reform of the Australian tax system, both at the national and local level.
Pates, Greg (2010). Central Corridor Light Rail Transit (LRT) in Minneapolis and Saint Paul:
Sustaining Affordable Housing in the Central Corridor: The Neighborhood Connection.
Minneapolis, MN, Center for Urban and Regional Affairs, University of Minnesota: 102.
Central Corridor Light Rail Transit (LRT) in Minneapolis and Saint Paul will open for
service in 2014, and is expected to spur new housing and commercial/retail/office
development along the length of the line, some of which is already happening. Preserving
and providing affordable housing along the Central Corridor Light Rail Transit (LRT)
line is a concern of a variety of organizations. Of the strategies recommended for
encouraging mixed-income transit oriented housing are two that involve value capture
activity: public private partnerships in which zoning incentives (density bonuses) are
used to create value and value capture activities to help finance the housing and
infrastructure activities.
Paulais, Thierry (2012). Financing Africa's Cities: The Imperative of Local Investment.
Washington D.C., International Bank for reconstruction and Development/the World Bank.
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This book examines the financing of local capital investments. There is an extensive
discussion of value capture in Africa. Argues that ensuring that the locality recovers a
portion of this surplus is morally justifiable and economically vital because doing so
permits financing of future capital investments. Among the chief methods to capture land
value, three methods seem likely to find use on the African continent, separately or
simultaneously depending on the context: (1) direct land transfers, (2) direct
contributions from owners or developers, and (3) land added-value taxation. This last has
the reputation of being complex to implement and collect, but there are cases in which
these taxes can become both effective and well accepted
Pereira, Gislene (2012). "From fintas to tribute: a path of the Betterment Levy in Brazil." urbe,
Rev. Bras. Gest. Urbana 4(2): 207-213.
This article, entirely in Portuguese but with an English abstract, discusses tools for value
capture in Brazil. It discusses the history of the Betterment Tax (coming from the
Philippines Ordnances in Portugal.) The ultimate modification in Brazil is making it
more of a Brazilian tax, with a management dimension.
Perez, Benjamin (2010). Financing Surface Transportation in the United States Forging a
Sustainable Future—Now! Fourth International Conference on financing Surface Transportation
in the United States, New Orleans, Louisiana, Transportation Research board.
The 2010 TRB conference was entitled “Forging a sustainable Future—Now!” The topic
of value capture arose in a few areas. The conference identified several value capture
issues that may be worthy of future research. For example, benefit–cost analysis can be
designed to capture nontraditional issues such as livable communities, economies of
agglomeration and densification, health and lifestyle choices, and spatial and social
distribution. There are ways to capture the value of increased real estate development as a
benefit associated with livability.
Peterson, George E. (2009). Unlocking Land Values to Finance Urban Infrastructure.
Washington, D.C., The World Bank.
This book examines capturing land value gains for public investment. Argues that land
values are highly sensitive to infrastructure investment and economic growth and that
public works are immediately capitalized into surrounding land values. Book examines
the practical workings of land-based financing in different country settings. Also notes
risks of these techniques.
Peterson, George E. and Vasudha Thawakar (2013). Capturing the Value of Public Land for
Urban Infrastructure. Washington D.C., The World Bank.
Government entities in India hold large amounts of public land including some of the
most valuable property in the country. Parts of these holdings are vacant or underutilized.
Public sector bodies also own large blocks of land that sometimes stand in the way of
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efficient completion of urban infrastructure networks. At the same time, urban India is
deficient in basic infrastructure. This condition raises fundamental questions. Are some
of government landholdings “surplus” or not needed. There is a possible use of value
capture techniques in these circumstances.
Phu, Nguyen Thien (2007). Value Capturing: A Realistic Funding Source for Urban
Transportation in Ho Chi Minh City. Proceedings: International Conference on Air Quality
Management in Southeast Asia 2007. Ho Chi Minh City, Vietnam, Southeast Asia Urban
Environmental Management Applications: 57-69.
This paper examines how the concept of “value capturing” has been applied in some
developed and developing countries to put together funding for urban development and
urban transportation. This paper conducts a literature review and discusses various
aspects of its applicability in the context of Vietnam. Ho Chi Minh City requires finding
new means to finance capital investment on transportation, particularly public transit
systems and value capture offers a good opportunity to achieve these goals.
Pitelis, Christos (2007). "European Industrial and Competition Policy: Perspectives, trends and a
new approach." Policy Studies 28(4): 365-381.
This article discusses alternative perspectives on competition and industrial policies (IP)
in theory and in practice and critically assesses recent European IP in this context. It
develops a new framework for IP that emphasizes the sustainability of value creation at
the firm, meso and national levels, and explores its implications for IP in general and
European IP in particular. IP suffers from various limitations. First, innovation is seen as
the near exclusive determinant of value creation. Second, the sustainability of the value
creation process of the system-wide level is not discussed. Third, value capture by
economic agents and its impact on the sustainability of value creation is all but ignored.
Value creation need not automatically imply value appropriation or value capture. To
capture value, firms (and also individuals and nations) pursue a panoply of value capture
strategies. The pursuit of value capture by one agent may impact negatively on the ability
of another agent to further his/her objectives.
Pitelis, Christos and Pellumb Kelmendi (2009). The political economy of European anti-trust and
industrial policy. Munich, Germany, MPRA Paper: 49.
Although this is primarily written from the perspective of the private market, it does note
some concerns about the value capture approach that might be applicable in the public
sector. For example, the pursuit of value capture by one agent may negatively impact
negatively on the ability of another agent to further his/her objectives, thus raising agency
issues. The paper’s discussion of value capture extends the existing neoclassical and
resource-system perspectives. It also argues that innovation incorporates sustainability
and value capture characteristics that could help marry value capture to sustainable value
creation. It suggests that the theory of value creation not only requires a synthesis of
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resource allocation and resource creation but also the identification of the requisite power
structures that allow value creation not to be prejudiced by value capture.
Pitelis, Christos N. (2013). "The Public−Private Nexus in Organizational Economics and the
Challenge of Sustainable Value Creation." Journal of Change Management 13(4): 387-406.
This article explores the scope for cross-fertilization between extant alternative
organizational economics perspectives on the private−public nexus. It is suggested that
there is substantial scope, which has gone underexplored. The comparative advantages
are highlighted, and a synthesis and extension of apparently competing perspectives is
provided. Addresses the co-evolution of organizational value capture, value creation, and
sustainable advantage. Furthermore, the article explores the implications for
public−private links that foster sustainable system-wide value creation and concludes by
pinpointing limitations of organizational economics as a whole and the need to leverage a
multi- and cross-disciplinary perspective.
Plummer, Elizabeth (2009). Fairness and Distributional Issues. Land Value Taxation. R. F. Dye
and R. W. England. Cambridge MA, Lincoln Institute of Land Policy: 73-98.
This chapter first defines fairness as being based on ability-to-pay and concludes that
progressive tax systems are generally viewed as fairer than proportional or regressive
systems. It argues that the statutory tax burden of a land value tax is borne by
landowners, and if a land value tax is substituted for a traditional property tax, the land
value tax will increase the tax burden for owners of land-intensive properties. Finds that
empirically there are a limited number of studies that examine how replacing a traditional
property tax with a land value tax would shift the tax burden, and these studies do not
have consistent results. Concludes that more studies are needed.
Plummer, Elizabeth (2010). "Evidence on the Distributional Effect of a Land Value Tax on
Residential Households." National Tax Journal 63(1 (March)): 63-92.
This article examines replacing a uniform property ax with a land value tax. Using a
Texas county as a case study, the paper finds that a revenue neutral replacement would
shift the tax burden away from single family dwellings to other properties, with the
average tax liability falling by about 30 percent. The land value tax would be slightly
more progressive and tax capitalization would occur.
Poole, Robert W. Jr. (2013). Funding Important Transportation Infrastructure in a Fiscally
Constrained Environment. Reason Institute Policy Brief. Los Angeles, CA, Reason Institute: 22.
This report is an attempt to apply benefit fees to finance transportation infrastructure. In
addition to using increased user fees (with vouchers for low income riders), the paper
also advocates value capture as a largely untapped source of transit finance. The paper
believes that value capture is most applicable to rail transit funding.
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Popovici, Octavian-Mihael (2013). Financing flood protection measures in developing countries:
Are private investments feasible? Construction Management and Engineering. Delft, The
Netherlands, Delft University. MSc. in construction Management and Engineering: 100.
The objective of this paper is to explore additional ways of private financing of flood
protection projects in developing countries, in order to increase the implementation pace
of such measures. Value capturing policies are generally used in financing transport
infrastructure and services, so their application to flood protection will be based on an
attempt to fit certain policies to match flood protection projects. The proposed framework
will be based on exploring the project delivery methods used in the Pevensey Coastal
Defence project in the UK, the only known flood protection project developed under PPP
worldwide. Value capturing will attempt to answer three main questions that can be
indirectly found residing in the research questions: What values are created through the
implementation of an infrastructure asset? Who is benefits from the created value? And
how can governments use these values in their benefit?
Prabhakar, Rajiv (2010). Does the Economic Recession Create Opportunities for Wealth
Taxation? Innovation, Knowledge, Development (IKD). UK, The Open University: 16.
This paper argues that recessions can create a positive case for wealth taxes, including a
form of land tax. It asserts that there is likely to be a close relationship between land and
housing values and that taxing housing might be a reasonable proxy for taxing land
values. Quotes others as arguing that much of the rise in land values comes from
communal rather than individual actions, and thus land taxes are justified. It also argues
that wealth taxes are consistent with a revival of interest in Keynesian economics.
Pratt, Julian (2011). Stewardship Economy: Private property without private ownership. San
Francisco, lulu.com, Creative Commons.
This book discusses the concept of the stewardship economy—one in which the “natural
world” is held in stewardship (land is held in trust) while any artifacts are held as private
property. In this economy, fees for the use of land—called stewardship fees—provide
income that may substitute for conventional taxes. In this economy, 100 percent of the
market rent of land is collected. Also addresses question of how to collect the whole of
the market rent without distorting efficient allocation of land as well as how to transition
to this economy. Notes that if land value taxation were introduced at 100 percent of the
market rent, the market rent net of the tax would be zero as well as market value.
Pratt, Julian (2013). Supporting local economies: from Business Rates to Land Value Taxation.
Occasional Paper. Devon, UK, Henry George Society of Devon: 68.
This is a paper from the Henry George Society of Devon. It consists of two sections: the
first is a question and answer section that goes deeply into the implementation process of
a land value tax. The second is a discussion that addresses the issue of replacing the
National Non-Domestic (business) Rates by Land Value Taxation in a two-stage process.
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Also included, as an introduction, are the reasons, given by the Exchequer Secretary to
the Treasury, as to why a land value tax is not a tenable proposal. Proposal lists many
benefits of land value taxation.
Puget Sound Regional Council (2012). Growing Transit Communities Staff Report. Puget Sound
Regional Council. Seattle Washington, Puget Sound Regional Council: 99.
This is a work session briefing paper that identifies value capture techniques as ways of
ensuring that affordable housing will be provided near TOD stations. It identifies both
the responsibilities of the regional organization and local jurisdictions for gathering value
capture revenues.
Puget Sound Regional Council (2013). Value Capture Financing in Washington. Seattle,
Washington, Puget Sound Regional Council: 90.
This report provides an analysis of value capture financing methods and tools in
Washington State and around the United States for developing infrastructure and
affordable housing that support transit investments. The conclusions and
recommendations are intended to guide the development of future legislation for new
value capture financing tools in Washington. Legal and political challenges are included.
Suggested alternative tools to enable value capture are suggested.
Pullen, John (2011). "A Note on Henry George's Concept of Value from Obligation." History of
Economics Review (53): 44-54.
George argues that the principal example of value by obligation is the ownership of land,
because this merely redistributes wealth from one individual to another.
Radzimski, Adam (2012). Real Estate Taxation in Poland and its Influence on Spatial
Development. Real Corp 2012: Re-Mixing the City--Towards sustainability and Resilience?,
Tagungsband.
The current form of the property tax in Poland does not allow capture of an increase of
property value caused by public investments. There are, however, special quasi-taxes that
have been invented for this purpose. These are the charges on an increase in property
value because of 1) changing zoning regulations, and 2) division, or subsequent merging
and division of property, or the construction of new infrastructure. Both charges
described above are rather problematic tools for the municipalities. It is quite obvious that
to apply such “extraordinary” fiscal instruments is politically very unpopular. Also, this
form of taxation bears a high transaction cost, since each charge must be based on
valuation.
Rao, U.A. Vasanth (2008). Is Area-Based Assessment an Alternative, an Intermediate Step, or an
Impediment to Value-Based Taxation in India? Making the Property Tax Work. R. Bahl, J.
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Martinez-Vazquez and J. Youngman. Cambridge MA, Lincoln Institute of Land Policy: 241-
267.
This chapter discusses the property tax in India, which the author claims raises an
inadequate level of revenue for local governments. Some Indian states have moved to
area-based assessment—which is assessment based on the physical characteristics of the
property, and which has no relevance to the actual or presumptive rent. While this
movement was relatively successful in increasing revenues to local governments, it has
come into some serious criticisms. There is also some discussion of land value taxation
(called site value) as well as some criticisms of this idea.
Raslanas, Saulius, et al. (2010). "Land Value Tax in the Context of Sustainable Urban
Development and Assessment, Part I--Policy Analysis and Conceptual Model for the Taxation
System on Real Property." International Journal of Strategic Property Management 14(1): 73-86.
Article argues that a real property tax is needed for a more rational use of land resources
and structures (among other reasons). This tax would lead to the divestment of the
existing real property ownership by those who do not pay and would also significantly
limit the purchase of property for speculation. It then identifies and describes the
Lithuanian land tax, whose base was codified in 1999. It then identifies the benefits of a
land tax based on market value. It evaluates the land tax in Lithuania and identifies both
some benefits and problems. It then makes Lithuanian recommendations.
Razin, Eran and Anna Hazan (2013). Municipal-private partnerships in Israel: from local
development to budgetary bypass. Geography of Governance: Dynamics for Local Development.
P. K. Pradhan, J. Bucek and E. Razin. Bratislava, Slovakia, International Geographic Union
Commission on Geography of Governance: 77-88.
The aim is to discuss the changing nature of PPP in the case of municipal-private
partnerships in Israel, focusing on the impact of economic downturns on the role of PPP
in local development. Our study demonstrates that the meaning of the concept PPP has
changed in recent decades, reflecting changing economic contexts and welfare state
regimes. Municipal-private partnerships have increasingly served as a budgetary bypass
‘no choice’ alternative, becoming essential for the maintenance of a local welfare state.
One tool is value capture financing in the PPP context. The economic crisis since 2008
exposed the blurred boundaries between the public and private sectors, particularly the
limits of risk sharing. It also exposed the limits of large-scale PPP contracts in a context
of high uncertainty.
Reaney, Vicky (2011). Supporting Transit-Oriented Development along the Southwest Rapid
Transit Corridor in Winnipeg: Recommendations for Station Area Planning. Architecture.
Winnipeg, University of Manitoba. Master of City Planning: 210.
This Master’s thesis argues that transit oriented development benefits governments
through higher property and sales tax revenues, and also benefits households and transit
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agencies through transportation efficiencies for households and higher revenues from
increased ridership and development on adjacent land. Notes that transit agencies view
ridership and revenues as primary objectives while planners and community economic
developers view value capture and community building as objectives; thus, there may be
conflicts.
Redfearn, Christian L. (2007). Urban Complexity & Parameter Instability: Assessing Amenity
Capitalization in the Presence of External Heterogeneity. Los Angeles, CA, University of
Southern California: 43.
Locational amenities should be capitalized into property prices. Unfortunately, in a
complex urban setting, common empirical approaches to measuring the value of
proximity can be highly sensitive to choice of subsample and to the parameterizations of
proximity itself. This is a direct result of an urban context in which distinct housing
submarkets can exist even within small areas. This paper demonstrates that external
heterogeneity significant complicates traditional hedonic analysis and may preclude its
use in complex urban land markets. The paper proposes a more robust approach that
offers a greater degree of confidence in parameter estimates. In contrast to the instability
of parameter estimates under traditional models, the more robust, nonparametric
approach yields a consistent finding of no significant capitalization of light rail into
single-family home values. This result speaks directly to the assessment of value-capture
programs in which capitalization is taxed in order to fund investment in public goods.
Reghizzi, Olivier Crespi (2012). The Financing History of Urban Water Infrastructure in Paris
(1807-1925): Lessons from the Past to Enlighten Present and Future challenges? Milan
European Economy Workshops. Milan, Italy, Universita Degli Studi Di Milano: 66.
Sustainable financing is a major challenge for the water sector both in many developing
countries where water and sanitation services are still in the expansion phase and in
Europe where the water industry is faced with major investments needs. To give more
depth to the present policy debate a historical perspective on water services financing is
needed. This paper is focused on the financing history of the Paris water infrastructure
brought to completion in the 1807-1925 time frame. A variety of financing schemes and
institutional solutions (municipal budget - fiscal resources, concession, municipal bond
and land added value capture schemes) are identified and described. A deeper analysis is
made on the financial flows of Paris’ water, sanitation and canals service over the 1893-
1930 time frame. A discussion on the institutional choices and on the long run cost
allocation of the chosen financing schemes is made.
Reghizzi, Olivier Crespi (2013). Providing and Financing a Municipal Infrastructure: A Long
Run Analysis of Water and Sanitation Investments in Milan (1888-2000). The Economics of
Infrastructure Provisioning: The (Changing) Role of the State. Island of San Servolo in the Bay
of Venice, Italy, CESifo: 112.
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The major part of our paper is focused on a detailed analysis of the Milan modern water
and sanitation service (WSS) (1888-1924). A variety of implemented financing schemes
and institutional solutions (municipal budget - fiscal resources, municipal bond and land
added value capture schemes) are identified and described. The financial equilibrium of
the WSS is analyzed. A basic overlapping generation model is used to explore how the
infrastructure costs have been allocated between the various generations. The last part of
our paper adds a long run perspective (1953-2000) to the detailed analysis.
Restrepo, Patricia Acosta (2010). "Instrumentos de financiacion del desarrolo urbano en
Colombia: la contribucion por valorization y la participacion en plusvalias. Leccions y
reflexiones." Desafios 22(2): 15-43.
This paper, entirely win Spanish but with an English abstract, analyzes the administration
and participation in Land Value Increments as a policy in Colombia to capture land rents
generated by the public sector investments and decisions. Using Bogota as a case study,
the author finds that institutional arrangements are leading to isolated procedural
management which hinders the policy. Recommendations are made toward the
implementation of value capture.
Rodrigue, Jean-Paul (2012). The Benefits of Logistics Investments: Opportunities for Latin
American and the Caribbean. Infrastructure and Environment Sector. Washington, D.C., Inter-
American Development Bank: 65.
This Inter-American Development Bank report has a brief section on value capture in the
context of international trade and its logistics. It uses the concept of a transport chain,
which is a series of logistical activities that organizes modes and terminals along a supply
chain. The study then discusses a global production network and a shift in how value is
created, captured, expanded or retained. Value capture, in this sense, is linked with value
creation, and implies the accumulation of related activities at a specific location. Value
capture involves getting a higher return in terms of added value because new activities
are created. It notes that value capture could have a significant effect on value retention.
Rodríguez, Daniel A. and Carlos H. Mojica (2009). "Capitalization of BRT network expansions
effects into prices of non-expansion areas." Transportation Research 43(5): 560-571.
A before and after hedonic model is used to determine the property value impacts on
properties already served by the transit system caused by extensions to Bogotá’s bus
rapid transit system. Asking prices of residential properties belonging to an intervention
area or a control area and offered for sale between 2001 and 2006 are used to determine
capitalization of the enhanced regional access provided by the extension. Properties
offered during the year the extension was inaugurated and in subsequent years have
asking prices that are between 13% and 14% higher than prices for properties in the
control area, after adjusting for structural, neighborhood and regional accessibility
characteristics of each property. Furthermore, the appreciation is similar for properties
within 500 m and properties between 500 m and 1 km of the BRT.
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Rolon, Abigail (2008). "Evaluation of Value Capture Mechanisms from Linkage Capture to
Special Assessment Districts." Transportation Research Record: Journal of the Transportation
Research Board 2079: 127-135.
Value capture mechanisms such as special assessment districts, tax increment financing,
and linkage capture are seen as alternative strategies for funding transportation projects
and making beneficiaries of higher land values pay a share of the benefits that they
receive from transportation investments. This study assesses existing value capture
mechanisms based on three desired criteria of taxation policy: maximization of
efficiency, minimization of transaction costs, and minimization of regressivity.
Ross, Robert (n.d.). Preventing Disaster: A Georgist perspective on flood control in New
Orleans. New York, NY, Shaken Foundation: 41.
This report from the Schalkenbach organization, argues that a land value tax is a public
policy tool that would be very useful in financing levee construction in New Orleans. The
author argues that a land value tax would ensure that levees would protect people and
property, would speed recovery of the city and decrease the possibility of sprawl.
Proposes that the City Council should increase the tax rate on land values, reduce the tax
rate on improvements and sales, strengthen land use management policies, and finance all
structural flood protection entire through taxes on land values. Finally, the paper argues
that land value taxation would function with minimal bureaucracy and would eliminate
the cross-subsidy between the general taxpayer and landowners and would shrink the
city’s footprint.
Roukouni, Anastasia and F. Medda (2012). "Evaluation of Value Capture Mechanisms as a
Funding Source for Urban Transport: The Case of London's Crossrail." Procedia--Social and
Behavioral Sciences 48: 2393-2404.
Crossrail is a new project that will develop a high frequency rail corridor across London.
Within the financial portfolio of Crossrail, £4.1 billion of the costs will be generated by
the Greater London Authority (GLA) through the Business Rate Supplement (BRS), a
fiscal method based on Land Value Capture Finance. The objective of this paper is to
evaluate the effectiveness of the Business Rate Supplement. After having examined the
financial consequences of the BRS, a modified fiscal financial mechanism is proposed,
which is estimated to yield a greater financial return on the investment. The proposal
consists of two separate taxes combined into one scheme: a modified version of the
current BRS, and a Stamp Duty levy. The GLA's BRS scheme and the aforementioned
proposal are also evaluated using four main qualitative criteria: efficiency, equity,
sustainability, and feasibility. Includes literature review.
Rowlingson, Karen and Andy Mullineux (2013). Sharing Our Good Fortune: Understanding and
Responding to Wealth Inequality; Report of the Birmingham Policy Commission on the
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Distribution of Wealth. Birmingham, UK, Birmingham Policy Commission on the Distribution
of Wealth: 64.
Discusses land value taxes in the context of mitigating wealth disparities.
Ryan, Anne B. (2012). Cultivating resilient and ethical prosperity with basic income TASC
(Think‐tank for Action on Social Change) conference: Crisis to Opportunity,. Dublin, Ireland:
12.
This paper defines the human‐created commons as arising from public investment and
community activities. It asserts that everyone is entitled to benefit from the use of the
commons, natural or constructed and that those who use the commons should pay rent.
The paper then argues that the commons includes land and the value that accrues to land
arising from investments made from the public purse. Everyone should get a share of this
added value. One way to begin this process in Ireland is to introduce a site‐value tax,
followed by a complete land‐value tax. One of the paper’s conclusions is that bad tax
laws were at the root of the Irish crises and that land‐value taxes would stop the
speculation‐based boom from happening again.
Saginor, Jesse, et al. (2011). Leveraging Land Development Returns to Finance Transportation
Infrastructure Improvements. College Station, TX, Texas A&M University System: 71.
Increasing fuel prices coupled with increasing demand for fuel-efficient cars is driving
down fuel consumption, and the associated fuel tax revenues. At the same time, the
demand for new transportation infrastructure currently outpaces construction, driving up
prices for asphalt, concrete, and steel. This combination of declining revenues and higher
costs is causing financing shortfalls. As one effort to bridge this gap, Texas House Bill
3588 authorized the creation of Regional Mobility Authorities (RMAs), which have the
ability to apply tax-increment finance (TIF) to capture land development returns
associated with land development improvements. This research identified the magnitude
of property value increases associated with transportation infrastructure improvements.
Using a quasi-experimental design, property values in areas that recently underwent
significant transportation infrastructure improvements were compared against nearby
control groups. The relative property value increases determine the relative margin of
benefit from which TIF revenues may be drawn against.
Salon, Deborah and Sharon Shewmake (2011). Opportunities for Value Capture to Fund Public
Transport: A Comprehensive Review of the Literature with a Focus on East Asia: 40.
In the case of the world’s great public transport systems, fares do not fully cover costs.
Substantial government subsidies are required to build, maintain, and operate most public
transport systems. One of the challenges faced by cities is where this money should come
from. An often‐discussed option is known as land value capture. The authors’ goal is to
use findings from the existing literature to shed light on when and how value capture
strategies could be used to finance public transport systems in East Asian cities. We
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review three related strands of literature: evidence of the land development impacts of
public transport, estimates of land value increases attributable to public transport, and
case studies of the use of value capture mechanisms to finance public transport. We then
draw upon this literature review to identify specific recommendations for the
implementation of value capture in a variety of contexts.
Samsura, Ary and Erwin van der Krabben (2011). Funding Transport Infrastructure
Development Through Value Capturing: A Game theoretical Analysis. Transitions Towards
Sustainable Mobility. J. A. E. E. v. Nunen, P. Huijbregts and P. Rietveld. Berlin, Germany,
Springer-Verlag: 59-80.
In a situation where property rights are well assigned to the land owner it is problematic
to apply value capturing unless the institutional arrangements with respect to the
assignment of property rights over the increment in land value will be changed or the
parties involved will start a bargaining process to reallocate the increment in land values
among them. This chapter offers an analysis of bargaining processes in the
implementation of value capturing methods as an internalization mechanism for the
externalities by relying on concepts and approaches drawn from game theory.
Samsura, Ary Adriansyah and Erwin van der Krabben (2012). "Negotiating land and property
development: a game theoretical approach to value capturing." Journal of European Real Estate
Research 5(1): 48-65.
This paper uses game theory to model the structure of relations between the actors
involved in value capturing. The authors consider the implementation of value capture as
the result of an agreement between a municipality and landowners to contribute to the
costs of public infrastructure development which, in essence, is a form of collective
action. The paper not only demonstrates the usefulness of game theoretical modelling in
conceptualizing relations between different stakeholders in the implementation of value
capturing and suggests the best possible strategy for every stakeholder, it also observes
the limitations of the methods in analyzing the behavior of actors involved in decision-
making processes with respect to value capture.
Samsura, D. Ary A., et al. (2013). "Bargaining for value capturing: a game-theoretical analysis
and experimental approach." Environment and Planning B: Planning and Design 40(2): 234-253.
This article asserts that the implementation of value capture is often problematic because
the instruments used for it are often politically difficult to implement. The authors
suggest an alternative approach to value capturing is to stimulate the stakeholders to
bargain over the distribution of the increment values. The article presents an analysis of
bargaining for value capture based on cooperative game theory in partition function form.
They use infrastructure development in the Netherlands and play the game with experts
in Dutch planning and infrastructure provision. They find that this is a useful method.
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Sands, Gary and Mark Skidmore (2014). "Making Ends Meet: Options for Property Tax Reform
in Detroit." Journal of Urban Affairs 36(4): 682-700.
As part of an overall analysis of Detroit’s tax structure, the authors carefully examine the
possibility of a land value-based tax. They find that it would generate significant savings
to residential property owners at the expense of commercial and industrial properties. It
would also have significant implications in terms of shifting tax burdens across property
classes as well as within property classes. This latter may improve horizontal equity.
Also assumes that the estimated valuation of land is accurate. They conclude the land tax
discussion by noting that Detroit has an excess supply of land and residential and
business structures, so that it is unclear how property values might respond to a shift to
land taxes.
Sanyal, Bishwapriya and Chandan Deuskar (2012). A Better Way to grow?: Town Planning
Schemes as a Hybrid Land Readjustment Process in Ahmedabad, India. Value Capture and Land
Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln Institute of Land Policy: 149-
182.
This chapter analyzes town planning schemes (TPS) in India. TPS are a hybrid form of
land readjustment and infrastructure finance. In a TPS, agricultural landowners on the
urban fringe are forced to give up as much as 40 percent of their land to the government
in exchange for compensation. The government builds infrastructure on a portion of the
land and retains a portion to sell at auction to raise revenue for the infrastructure. The
remaining land is divided into new, serviced plots which are returned to the original
landowners who can then either build on these plots or sell them. Either way they pay
only one half of the increase in the value of their land to the government as a betterment
charge.
Sayce, Sara, et al. (2008). "Local Property Taxation as a Strategic Planning Tool in the UK: Can
'Landvaluescape' Play a Role at Local Levels?" Local Economy 23(3): 208-221.
The UK government is seeking to mitigate the environmental impact of development.
The paper considers research into the potential for using aggregated property valuations
as a method of monitoring economic health at a national and local scale, by applying geo-
spatial modelling and display techniques. Given advances in the application of modern
information systems (including the capture, management and display of geo-spatial data),
the authors assess the potential of such systems for the status of relevant data sets in the
UK. The paper specifically analyzes land value capture as dependent on Geographic
Information Systems and concludes that a pilot project showed success in ten local
authority agencies. Uses Delphi Analysis as technique.
SB Friedman Development Advisors (2011). Transportation Value Capture Analysis for the
CMAP Region. Chicago, IL: 21.
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This current study supports the conclusion that value capture has significant potential as a
financing mechanism and extends its application to a broader set of transportation
improvement typologies and situations. Specifically, this study highlights the challenges
associated with the use of value capture in an economically distressed area, illustrates its
effectiveness to fund public parking within a TOD context, and also demonstrates that
value capture can be successfully used to fund highway projects. However, it is also
clear that, in some cases, value capture is likely to provide only a portion of an overall
package of local funding contributions for a transportation improvement. As the Red Line
analysis indicates, areas with a history of disinvestment may pose a particular challenge
for value capture mechanisms.
Schrock, Melissa (2012). The Potential Use of Land Readjustment as an Urban Redevelopment
Strategy in the United States: Assessing Net Economic Value. City Planning and Real Estate
Development. Cambridge, Massachusetts, Massachusetts Institute of Technology. Master in
City Planning; MSc in Real Estate Development: 104.
A land readjustment method of land assembly has an extensive international history but is
often unknown in the United States. It promises to produce efficient development
patterns, maximize value creation, minimize population displacement, fund the
construction of project-related infrastructure and public facilities and protect the rights of
property owners. Value is created and can be captured. A case is made for the use of
land readjustment in urban redevelopment scenarios in Massachusetts. The investigation
concludes with a discussion of the distribution of these economic benefits. A financial
analysis tool created by the researcher is provided in an accompanying spreadsheet.
Scott, James Wesley (2007). "Smart Growth as Urban Reform: A Pragmatic 'Recoding' of the
New Regionalism." Urban Studies 44(1): 15-35.
New regionalism values social communication over political coercion as a way to
motivate inter-municipal, interagency and multi-actor co-operation in metropolitan
regions. This analysis of emerging ‘smart growth’ strategies in North America offers a
‘pragmatic’, context-sensitive and critical reading of region-building. Issues at stake
involve integral approaches to regional competitiveness, social equity, housing,
redevelopment, transport, the environment, and public services. This global set of goals is
translated locally into action, resulting in highly variegated regional governance
landscapes that reflect both specific socio-political and economic contexts and the
historical continuity of urban governance reform processes. Value capture included as a
finance technique.
Scott, Marcia, et al. (2013). Intermodal Transportation Facilities: Research of Viable Attributes
and Potential to Integrate Curbside Intercity Buses. Newark, DE, University of Delaware: 84.
Value capture is one of the seven innovative tools that EPA identifies as being used for
TODS. The term “value capture” has been described as a mechanism to capture all or a
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portion of the financial benefits received through property value increases, generated by
geographically targeted public capital investments. One value-capture method suggested
is a tax on land values. To achieve this, a “local improvement district” is created and a
special assessment, or land value tax, is levied to pay for costs of station improvements,
public infrastructure, and other amenities that enhance the attractiveness of the transit
station and stimulate adjacent mixed-use development. Other value-capture techniques
can include the use of development fees and joint development.
Seigel, Steven M. (2013). "Community Benefits Agreements in a Union City: How The
Structure of CBAs May Result in Inefficient, Unfair Land Use Decisions." Yale Law School
Student Legal History Papers paper 28(4-1-2013): 104.
Community benefits agreements (CBAs) are hailed by land use reform advocates as an
effective, flexible, inclusive tool for making land use decision-making processes more
responsive to traditionally underserved communities. Using the power of community
organizing to gain leverage over developers as they navigate zoning and other regulatory
chokepoints, CBAs allow traditionally disorganized residents and businesses to extract
benefits and conditions directly from developers. This value capture process, reformists
argue, helps reduce the negative impact of diffuse economic and social externalities that
either cannot or will not be mitigated by the traditional land use regulatory apparatus.
Senn, Lanfranco (2007). "Cities and Network Public-Utilities Services: Characteristics, Effects,
and Financing." Economia dei Servizi 2(2): 287-309.
Network public-utilities services, are increasingly considered a crucial factor for the
attractiveness of cities. In fact, the more a city offers high quality services, the more it is
attractive; and the more it grows, the more it needs to provide and expand its service
supply. Efficient services are important factors for the quality of life, especially when
urban size increases and positive external economies might turn into diseconomies of
congestion. If this is valid for urban transport, it is also true for energy provision, water
and waste management. It is always useful to recognize who directly or indirectly
benefits from the positive externalities generated by the development of network public-
utility services in order to ask him to compensate for the benefits through innovative
financing schemes (value capture, scope taxes). Only summary is in English--the rest is
in Italian
Shapiro, Perry (2012). Takings and Givings: The Analytics of Land Value Capture and Its
Symmetries with Takings Compensation. Value Capture and Land Policies. G. K. Ingram and
Y.-H. Hong. Cambridge MA, Lincoln Institute of Land Policy: 41-68.
This chapter focuses on the institutional arrangement of compensation/recovery
mechanisms of value capture and the conceptual and practical problems that are part of
any compensatory/recovery mechanism. The chapter then explains efficiency standards,
and analyses a case study of a proposed road that represents a range of public policies,
some of which necessitate physical takings and some which do not. The chapter finishes
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with a mechanism for assembling property that ensures all landowners are adequately
compensated and that all transfers of ownership are efficient.
Siemiatycki, Matti (2011). "Urban transportation public – private partnerships: drivers of uneven
development?" Environment and Planning A 43(7): 1707-1722.
This article discusses public-private partnerships as a model to ensure that the
infrastructure of urban transportation is provided. It finds that, first, regional investment
priorities and public interest considerations are developed. Once this has occurred,
individual road and transit PPPs are financed through a combination of private
investment, public grants, and land-value capture adjacent to the new infrastructure.
Finds that cities in less affluent regions may receive less PPP investment because of
relative lack of economic value and the difficulty of recapturing that value. Article finds
that PPPs are concentrated in largest and wealthiest cities in a small number of countries
and have been an unstable source of funding.
Sietchiping, Remy (2011). Innovative Land and Property Taxation. Nairobi, Kenya, United
Nations Human Settlements Program.
This book is a series of edited chapters discussing both theory and practice of land value
taxation. It illustrates how a successful city development can use a reliable source of
funding to sustain investment in infrastructure and services, including how local and
national governments can use land and property taxation as means of redistributing
wealth, creating a better city, investing in infrastructure and ultimately befitting the entire
population. Several international case studies are discussed. See also Gdesz.
Sietchiping, Remy and Solomon Haile (2011). Land Based Taxation and Urban Development.
Innovative Land and Property Taxation. R. Sietchiping. Nairobi, Kenya: 2-.
Introduction to land based taxation and value capture. Sets tone for book.
Singhal, Shaleen, et al. (2013). "An evaluative model for city competitiveness: Application to
UK cities." Land Use Policy 30(1): 214-222.
Regeneration and business strategies are among the tools that cities may employ in order
to overcome the challenges that influence their competitiveness. This paper integrates
regeneration and property-led business strategies through the development of a
hierarchical model for city competitiveness. The methodology employs a Delphi
technique and analytic hierarchy process with multi-criteria analysis. Tax based
mechanisms influencing regeneration finance through business engagement include a
range of initiatives notably Tax Increment Financing, Local Enterprise Growth Initiative,
Local Authority Business Growth Incentive Scheme and Business Improvement Districts.
Sjoquist, David L. (2007). "How Should Land Be Taxed? Analyzing the Jamaican Land Value
Tax." Public Finance Review 35(1): 127-149.
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In 1957, Jamaica converted a property tax on both land and improvements to one based
only on the unimproved value of land. In 2002, Jamaica reduced property tax rates and
added property tax caps. This article analyzes the Jamaican land value tax, with specific
emphasis on the rate structure. The new structure leads to notches and discontinuities
and therefore inequities. The article proposes several alternative rate structures, discusses
the relative distribution of tax liabilities, and then discusses winners and losers under
these reforms.
Slack, Enid (2011). Infrastructure Planning and Financing: An Overview. Governance of
Metropolitan Regions in Federal Systems, Brussels, Belgium, Forum of Federations and the EU
Committee of the Regions.
Major infrastructure has to be planned and financed on a metropolitan or regional basis
and yet, in few countries do we see a metropolitan or regional government structure. How
do you plan and finance infrastructure over a metropolitan area when there are many
different local governments each delivering and paying for their own infrastructure? This
paper considers some of the models that have been used in selected federal countries to
plan for infrastructure on a regional basis and describes a number of tools for financing
infrastructure. Value capture is a financing tool that uses the increase in private land
values resulting from public investments to pay for infrastructure.
Smith, Jeffery J., et al. (2014). Financing Transit Systems through Value Capture: An Annotated
Bibliography. Victoria, British Columbia, Victoria Transport Policy Institute: 48.
This paper summarizes the findings of more than 100 studies concerning the impacts
transit service has on nearby property values, and the feasibility of capturing a portion of
the incremental value to finance transit improvements. The results indicate that proximity
to transit often increases property values enough to offset some or all of transit system
capital costs.
Smolka, Martim O. (2013). Implementing Value Capture in Latin America: Policies and Tools
for Urban Development. Cambridge, Massachusetts, Lincoln Institute of Land Policy.
This discussion of the concept of value capture explains its justification and increasing
popularity, provides a brief review of its antecedents in Latin America and elsewhere
around the world, and illustrates three categories of tools: property taxation and
betterment contributions; exactions and other direct negotiations for charges for building
rights or for the transfer of development rights; and large-scale approaches such as
development of public land through privatization or acquisition, land readjustment, and
public auctions of bonds for purchasing building rights.
Solano, Alex Smith Araque (2012). A Land and Financial Management Model of Urban
Renewal Projects. Bogota, Colombia, Economics Department, Universidad Sergio Arboleda: 27.
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Urban projects in Colombia, particularly those related to urban renewal, have not been
successful in attaining the social goals set by either public policy or zoning. In this paper,
the author argues that by using the financial and planning tools considered in the
Congress Act 388 of 1997, it is possible to use the rents associated with the use of the
land – traditionally captured by private operators – in favor of civil society. Specifically,
it is possible to improve the provision of social housing and the supply of urban amenities
under the principle of the fair allocation of cost and benefits. The infrastructure costs can
be internalized into the projects and the higher land value that is captured can finance
social housing as a Pigouvian tax. Additionally, under a Coasian perspective, the use of
these tools modifies the property rights system, which allows the agents to maximize
their objective functions.
Soos, Philip (2012). Speculative Vacancies in Melbourne: 2012 Report. Melbourne, Australia,
Earthsharing Australia: 40.
A large number of residential properties were vacant during the study period (at least
5.9%). One hypothesis as to why they remain vacant is the escalation of property values
(specifically land values) as housing prices in Melbourne have risen by 180 percent
(adjusted for inflation and quality) between 1996 and 2010. It can be argued that a
substantial land value tax would serve as a withholding cost and help to blunt capital
appreciation. The article recommends an increase in the land value tax to stunt the
unearned capital gains that can be realized from speculation and that a land value tax acts
as a holding cost, requiring a rental income to cover it.
Spaans, Marjolein, et al. (2010). "The concept of non-financial compensation: What is it, which
forms can be distinguished and what can it mean in spatial terms?" The European Journal of
Planning: 1-21.
Non-financial compensation increasingly receives attention in planning practice. Non-
financial compensation exists when a government compensates a person or company with
an interest in land for the loss of one or more of his property rights therein by creating a
new property right that he can either use or sell. It also exists when a government
provides an incentive for developers to realize certain planning goals either on their land
or on the land of others and the government does not directly subsidize that realization
but creates a property right that they can use or sell when they have realized the goals.
The paper elaborates on why government has to and wants to compensate and why
government can recapture added value in spatial planning cases.
Speedy, Benjamin (2013). Seizing the Opportunity? How Sustainable Urban Design will Feature
in the Redevelopment of he Central City of Christchurch to Reduce CO2 Emmisions from Land
Transport. School of Geography, Environment and Earth Sciences. Victoria, New Zealand,
University of Wellington. Master of Environmental Studies: 156.
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Looks at value capture (only as a sub-interest) in the context of increasing land values
from CO2 reduction through planning design. Uses Christchurch New Zealand as a case
study. Pessimistic conclusion that redevelopment opportunities will be undermined.
Speirs, Mark (2010). Land Value Taxation: An Underutilized Complement to Smart Growth
Policies. Community and Regional Planning. Philadelphia, PA, Temple University. Master of
Science: 60.
This Master’s thesis analyzes land value taxation and its relationship to smart growth
policies. It argues that moving to a two rate tax, with an increase in land tax and decrease
in tax on capital, will lead to infill, compact and dense development, affordable housing,
distinctive neighborhoods and mixed use building. The thesis concludes that a land value
tax has advantages over traditional economic incentive programs—for example tax
increment financings and abatements. It further argues that for success, land value
taxation needs proper zoning and land use controls.
Spiller, Marcus (2012). Land Management and Planning Legislation. Urban Infrastructure:
Finance and Management. K. Wellman and M. Spiller. Oxford, UK, Wiley-Blackwell: 121-148.
This chapter identifies the elements of land use planning systems and explores the main
issues involved in efficient, fair and accountable regulation of development. The
discussion is based on current practice in Australia. The chapter has a brief discussion of
the land development process—how private developers make judgments about whether
and when to proceed with projects. There is a boom and bust cycle which often affects
land development markets and complicates several aspects of urban systems
management. Chapter discusses why betterment occurs, including discussion of
regulated supply of permits. There is a discussion of principles underlying application of
development contributions (a concept similar to betterment). Puts betterment fees in
context of boom-bust cycle.
Sridhar, Kala Seetharam (2011). The efficiency of states and cities: Is there a case for public land
leasing and sales to finance India's cities? UNU-WIDER Project: New Directions in
Development Economics. Helsinki, Finland, UNU World Institute for Development Economics
Research (UNU-WIDER). Working Paper No. 2011/54: 29.
The sphere of municipal taxation was, in India some time ago enlarged to include taxes
on land values; however, with the exception of a few local bodies in Tamil Nadu, little
progress has been reported regarding the levy/enhancement of land taxes by local bodies.
This working paper examines the institutional arrangements for land use, and uses
stochastic frontier analysis to determine efficiency levels of Indian cities and states, with
particular emphasis on the case of roads.
Steele, Margaret (2012). Reframing Affordable Housing as Our Housing Commons.
Bloomington, Indiana, Indiana University: 18.
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This article suggests affordable housing should be recognized as a commons and should
be protected by community housing charters and managed by community housing trusts.
When land is managed as a commons, it has an intrinsic value to the community and to
all those who have access to it. Increases in market value can result from improvements
made to the land by the owner but they can also arise from social influences such as
increases in demand from population growth or improvements due to public
infrastructure or other services provided by the state. Increases in land value due to these
“fortuitous factors” rightly belong to the public. However, without land value capture
policies, these increases accrue to private land owners and are reflected in increased
house prices. Land value capture policies would reduce or eliminate land speculation,
making housing more affordable and the revenue collected could be used to provide start-
up funding for community housing trusts.
Steen, Marcus and Anders Underthus (2011). "Upgrading the ‘Petropolis’ of the North?
Resource peripheries, global production networks, and local access to the Snøhvit natural gas
complex." Norsk Geografisk Tidsskrift Norwegian Journal of Geography 65(4): 212-225.
The article explores and assesses local and regional firms’ access to a natural gas
extraction and refining complex located at the northern frontier of the Norwegian
Continental Shelf. Controversial in environmental terms, the complex has been largely
legitimized by the promise of regional economic development in North Norway. The
article employs a Global Production Network theoretical approach, and the authors pay
particular attention to the complex interaction and power struggle between local, national,
and global firms and institutions. Authors note that value capture is greatly influenced by
the distribution of rent between states and the petroleum producing companies. They also
note that the prospects for regional value capture seem grim, although there apparently
has been some local value capture.
Stephens, Mark (2011). Tackling housing market volatility in the UK. York, United Kingdom,
Joseph Rowntree Foundation: 99.
Brief discussion of land taxes and housing problems in the UK.
Stevens, Barrie and Pierre-Alain Schieb (2007). Infrastructure to 2030: Main Findings and Policy
Recommendations. Infrastructure to 2030: Volume 2, Mapping Policy for Electricity, water and
transport. BarrieStevens. Paris, France, Organisation for Economic Co-operation and
Development. 2: 19-106.
In OECD countries, traditional sources of public finance alone will not suffice to meet
future infrastructure needs, which are huge and growing. Bridging the infrastructure
investment gap will demand innovative approaches, both to finding additional finance,
and to using infrastructures more efficiently and more intelligently through new
technologies. Public budgets fed by taxes will not suffice to bridge the infrastructure gap.
What is required is greater recourse to private sector finance, together with greater
diversification of public sector revenue sources. Diversifying the sources of public sector
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finance includes: Making more and better use of user fees, creating mechanisms for
securing long-term financing for infrastructures, exploring the possibilities offered by
land value capture, and promoting innovative variations on traditional financing
mechanisms. More attention has been brought to bear recently on the potential of land
value tax, whereby a proportion of the increased value that accrues to landowners
benefiting from new or improved infrastructure in the proximity is captured and used to
fund the infrastructure provided.
Stewart, Frances, et al. (2009). The Implications of Horizontal and Vertical Inequities for Tax
and Expenditure Policies. CRISE Working Paper. University of Oxford, UK, Queen Elizabeth
House, University of Oxford, UK: 46.
This working paper examines the implications for horizontal and vertical inequalities of
tax and expenditure polices, with a small case study of Malaysia. In this context, it
analyzes a land value tax, defined as a tax on the potential value of land rather than the
actual value of the structure on it. Argues that this tax is progressive, even at a flat rate
and then it could be made even more progressive by having higher tax rates at high land
value or by exempting all property below a certain value. This may entail high startup
costs but have long-lasting benefits including improving the security of property rights.
Stoeltje, Gretchen (2011). Growing Gracefully. Public Roads, Federal Department of
Transportation, Federal Highway Administration. 75: 14.
New Texas DOT guidelines encourage arrangements that support alternative funding
options and long-term sustainability of transportation facilities. In a new subsection on
funding alternatives, the manual lists seven nontraditional options to consider when
initiating a project, such as value-capture mechanisms. These innovative public financing
mechanisms include public improvement districts, tax increment reinvestment zones, and
other special districts or public-private agreements. The town of Hutto, Texas
incorporated a value-capture mechanism in the master plan for The Crossings of Carmel
Creek, a future mixed-use development straddling SH 130 at its intersection with U.S. 79.
Percentages of the sales and hotel occupancy tax revenues arising from the development
will go back to the developer to fund roadways, sidewalks, and pedestrian and bicycle
paths.
Strategic Economics (2013). Implementing Equitable Transit Communities: Regional & Local
Recommendations for the Central Puget Sound Region. Seattle, WA, Strategic Economics
Center for Transit-Oriented Development: 63.
This report discusses activities that are necessary for equitable community growth around
high capacity transit in the central Puget Sound region. The report recommends eight
different approaches to implementation. One of the recommended polices is that value
capture mechanisms that derive public benefits from new development or increases in
property value should also be improved and expanded. Because different value capture
tools are appropriate for different markets, a variety of tools are needed, including impact
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fees and developer agreements, Use of revenues derived from value capture tools also
applies to other community benefits, including affordable housing.
Strategies for Public Transport in Cities. (n.d.) in Guidelines in market organization: funding
and financing, European Commission: 6.
The guidelines in this report are intended to give an overview of existing funding and
financing options for public transport. Funding in this Guideline is defined as how the
costs of operations are covered in a short or medium term perspective, the fiscal year, one
accounting period or (at the most) one Public Service Contract period. The main
objective of a financing scheme is to bridge the gaps in funding streams at the lowest
possible financing costs. The importance of long-term policy stability and political
consensus as far as possible concerning funding and financing of public transit must be
emphasized.
Stull, Mark A. (2008). "Design Considerations for a 21st Century Ground Transportation System
Based on Value-Capture Financing." Transportation Planning and Technology 31(3): 249-275.
Numerous studies have demonstrated that transportation systems raise property values
and stimulate economic growth; however, other studies suggest that recently constructed
urban rail systems have had only marginal economic impact, implying that mass transit
investments may not create significant value-capture potential. To generate more than a
marginal economic effect, a transportation system should represent a quantum leap over
the accessibility provided by the existing network. As a result, electromagnetic
propulsion with a linear motor has, by far, the greatest value-capture potential of any
ground transportation technology.
Sullivan, Dan (2011). Why Pittsburgh Real Estate Never Crashes: The Tax Reform that
Stabilized a City's Economy. Fleeing Vesuvius: Overcoming the Risks of Economic and
Environmental Collapse. G. Fallon and R. Douthwaite. Gabriola Island, BC, Canada, New
Society Publishers: 137-156.
This chapter examines the history of the land tax in Pittsburgh and concludes that the site
value tax in Pittsburgh led to low foreclosure rates despite the recession, slowly climbing
home prices and increasing construction rates. It also examines why the site value tax
was abolished and analyzes the tax in an environmental context.
Sumiraschi, Chiara (2010). "Financing Infrastructure in Europe: Experiences of Value Capture."
Scienze Regionali 9(Supplement n. 3): 101-120.
This paper first describes value capture as an infrastructure financing method. It then
provides two case studies for Copenhagen. The third part of the article then identifies
success factors and criticalities and offers recommendations of the use of value capture.
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Supriatna, Andri (2011). The Feasibility Study of Land Readjustment for Kampung Upgrading in
Jakarta. Geo-Information Science and Earth Observation. Ensschede, The Netherlands,
University of Twente. Master: 69.
Land readjustment is brought forward to involve public participation to solve problems in
urban development. This research studies about the feasibility of land readjustments for
Kampung upgrading. The design is on the basis of the existing condition in Kampung
and conceptualized within the framework of land readjustment characters. Value capture
is part of the analysis.
Suzuki, Hiroaki, et al. (2013). Overview: Transforming Cities with Transit. Transforming Cities
with Transit. Washington D.C., International Bank for Reconstruction and Development/The
World Bank: 46.
This report summarizes the previously cited books by the same authors. It emphasizes
value capture in Tokyo and Hong Kong, and notes that it is a concept that is effective not
only for sustainable finance but also for sustainable urbanism. Value capture is
particularly well suited for financing transit infrastructure in dense, congested settings,
where a high premium is placed on accessibility and the institutional capacity exists to
administer the program.
Suzuki, Hiroaki, et al. (2013). Transforming Cities with Transit. Washington D.C., World Bank
Publications.
This book explores the complex process of transit and land-use integration in rapidly
growing cities in developing countries. Key institutional, regulatory, and financial
constraints that hamper integration and opportunities to utilize transit to guide sustainable
urban development are examined in selected cities in developing countries.
Recommendations for creating more sustainable cities of the future range from macro-
level strategies to micro-level initiatives. At the micro level, financial sustainability can
use value capture (defined in glossary) as a tool for generating revenue; funds that go to
pay for not only the stations, tracks, and vehicles but also for all the upgrades and
enhancements that are needed within a half-kilometer of the station to create a high-
quality environment. The revenue could also finance social housing and associated
facilities for low-income people.
Suzuki, Hiroaki, et al. (2013). Transit and Land-Use Integration for Sustainable Urban
Development. Washington D.C., International Bank for Reconstruction and Development/The
World Bank.
Same book, different title as already noted in bibliography.
Taiebnia, Ali and Karim Zahedikhoozani (2011). "An Introduction of Proper Land Value
Taxation (LVT) Model for Iran." Tax Journal Volume NEW SERIES 19(10(58)): 97-120.
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(From abstract only) This paper (which cannot be easily downloaded) attempts to study a
model for implementing a land value tax in Iran. It finds that implementing a land value
tax requires a new law which should address local or national implementation, set
methods of land evaluation, select the appropriate tax period, determine the types of land
to be taxed, identify the ways deal with the deferred tax, and a variety of other
implementation questions. The article gathers questionnaire data and a model for local
land value taxes is introduced.
Tam, Howard and Lindsay Roxon (2013). Paying the Way: Financing GTA Transit Expansion in
the 21st Century and Beyond. GEIC: 20.
New business models and/or policies are needed to ensure financing for transit projects in
Ontario. This report creates a framework that will help to generate these new business
models and policies. The framework is premised on 4 key ideas: infrastructure referenda,
infrastructure bonds, government driven transit oriented development and a new
provincial infrastructure bank. The Provincial infrastructure Bank will have the sole
purpose of managing the funds and debt issued for transit development. This bank will
collect the dedicated sales tax, use land value capture techniques, and raise funds through
bond issuance. The bank would be the central linchpin of the proposed system.
Tapela, Nigel (2012). "Mainstreaming informality and access to land through collaborative
design and teaching of aspects of a responsive planning curriculum at the Cape Peninsula
University of Technology." Town and Regional Planning 60: 10-18.
Including a brief discussion of value capture as a finance tool, this article argues that the
curricula of planning schools should focus on local substantive contexts, and case studies,
as well as on developing deeper and more sustained collaborations with local actors in
implementing locally responsive curricula. The choice of thematic issues is strategic:
informality and access to land are two critical issues of substance while collaborative
design and teaching is a process issue, undergirding the value basis for/of planning. The
latter, collaborative curriculum design and teaching, refers to a more deliberative
engagement with context, substance and actors in an African planning environment in
curriculum development, design, implementation as well as sourcing and developing
learning materials that speak to local contexts.
Teglasi, Victor S. (2012). Why Transportation Mega-Projects (Often) Fail? Case Studies of
Selected Transportation Mega-Projects in the New York City Metropolitan Area. Graduate
School of Architecture, Planning and Preservation. New York City, Columbia University.
Master's in Urban Planning: 141.
This thesis examines why so few transportation mega-projects have been successfully
implemented in New York City over the past 50 years. The thesis suggests changes in
funding mechanisms (among other ideas) that may help the implementation of these large
projects. Value capture is one of these methods. It describes value capture as a means of
tax increment financing and discusses its use in New York City projects, projects in
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Denver Colorado and Atlanta, Georgia. It also discusses a New Jersey project that was
cancelled because, as the author argues, the New Jersey Governor did not consider value
capture mechanisms. The author concludes that funding for large transportation projects
is a serious, but not insurmountable problem.
Thiel, Fabian (2010). "Donor-Driven Land Reform in Cambodia--Property Rights, Planning, and
Land Value Taxation." Erdkunde 64(3): 227-239.
This article, focusing on Cambodian land reform after the Khmer Rouge, examines land
value taxation as a tool of better land use planning. Interestingly, it notes that private
land use rights should not be mixed up with private property rights. It argues that neutral
land use planning in Cambodia (defined as no private speculation) can only be achieved
by land value taxes that skims off the ground rent. However, the article also notes that
basic information of land and property sales, on land valuation systems, and property tax
techniques are limited and considered suspect. Forecasts that land value taxation will
become an important source of revenue for Cambodia.
Tits, Tambit (2008). Land Reform Taxation in Estonia. Making the Property Tax Work. R. Bahl,
J. Martinez-Vazquez and J. Youngman. Cambridge MA, Lincoln Institute of Land Policy: 395-
410.
This chapter gives a basic overview of land tax reform in Estonia, a former Soviet
republic that over 50 years of Soviet occupation had its land entirely expropriated.
Beginning in 1991, ownership rights began to be restored. A land tax was imposed in
1993, with only a limited number of exemptions. The chapter concludes by identifying
two areas for policy action: reduction of the costs of land tax administration and to use
the revenue potential of the land tax more effectively.
To, Iona (2009). Expanding the Multiple Accounts Evaluation Methodology to Better Assess
Rapid Transit Technologies: The UBC Line Case Study. School of Community and Regional
Planning. British Columbia, University of British Columbia. MSc. (Planning): 139.
The success of large-scale projects and programs such as a rapid transit development
project can be influenced by a multitude of factors, such as existing local government
policies, regional development trends, and the economic health of local communities.
Further, the implementation of such projects can have a wide range of environmental,
social, and economic effects. The Multiple Accounts Evaluation (MAE) framework
allows these influential factors and effects to be systematically evaluated quantitatively
and qualitatively. This study sets out to develop a more comprehensive MAE framework
to better assess the environmental, social, and economic effects of rapid transit
technologies. The study identifies the appropriate indicators to add to the MAE structure
and develops techniques to measure them. It explicitly includes a variety of value capture
techniques in this discussion.
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Tondelli, Simona and Filippo Scarsi (2012). "The New Cispadana Motorway: Impact on
Industrial Buildings Property Values." Journal of Land Use, Mobility and Environment 5(3): 21-
31.
In this paper, the estimation of the costs and benefits generated from the building of the
new Cispadana regional motorway (Emilia-Romagna Region, Italy) are described. The
study focuses on the price variations of the industrial buildings property values in the real
estate market after the new motorway will be built. Thanks to the hedonic pricing
method, using a multiple linear regression model, the contribution of accessibility to the
industrial buildings' pricing has been isolated. The purpose of such a procedure is the
setup of equalization mechanisms, which can rebalance the territorial effects though he
so-called “land value capture” tools. Furthermore, because of the understanding of the
contribution of each territorial feature to the final price of the good, this application could
provide a common knowledge base which could be used to support the government’s
ability to negotiate with the private partner in the public private partnership procedures.
Tooley, Shaun E. (2010). Innovative transportation finance: value capture techniques applied in
the state of Texas. Community and Regional Planning. Austin, Texas, University of Texas.
Master of Science: 179.
Transportation finance has been historically dominated by assessing taxes to
transportation users and taxes on the general public. Innovative financing mechanisms
such as tax increment financing, special assessment districts, and others represent value
capture techniques that tax property owners to pay for transportation costs. Value capture
techniques provide supplemental funds to support capital construction costs but are not
substitutes for existing dedicated and traditional tax revenue methods. The major findings
of Texas practice indicate that tax increment financing for transit does not significantly
contribute towards the transit infrastructure. Instead tax increment funds the improvement
of public infrastructure surrounding transit stations and stops and can be labeled transit-
supportive investments.
Tosics, Ivan (2013). Sustainable Land Use in Peri-Urban Areas: Government, Planning and
Financial Instruments. Peri-urban Futures: Scenarios and models for land use change in Europe.
K. Niksson, S. Pauleit, S. Bell, C. Aalbers and T. S. Nielson. New York, Springer-Verlag: 373-
405.
This chapter forecasts continuing European urban sprawl unless changes are implemented
in the planning and financing arenas. There is a special section in the chapter on value
capture finance and land taxes in Europe. Concludes that informal policy agreements are
unlikely to be reached without strong backing of formal government systems and
institutions.
Tosics, Ivan and Antal Gerthesis (2010). Review of further instruments with indirect effect on
regulation of peri-urban land uses. PLUREL Project: Peri-Urban Land Use Relationships--
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Strategies and Sustainability Assessment Tools for Urban-Rural Linkages. K. Nilsson.
Copenhagen, Denmark, University of Copenhagen. 2.2: 96.
The objective of this report is a systematic overview of public sector regulations, policies
and tools with effects on the peri-urban land uses. First financial instruments (e.g.
intergovernmental financial transfers, public subsidies, taxation, service pricing) will be
analyzed, followed by the overview of some of the sectorial policies (infrastructure
development, housing, transport). Included in the financial instruments' discussion are
land taxes and value capture along with a listing of their legal status in EU countries.
Townsend, Craig and John Zacharias (2010). "Built environment and pedestrian behavior at rail
rapid transit stations in Bangkok." Transportation 37(2): 317-330.
Governments of industrializing nations are pursuing investments in rapid transit
infrastructure. An immediate concern is how to pay for these capital-intensive projects.
Commonly, governments pay for infrastructure construction, while operations may be
either public, private, or a combination of the two. Proactive governments such as those
found in Japan and Asia’s Newly Industrialized Countries have used value-capture
strategies to harness public and private investment in mass rapid transit infrastructure.
The property development boom surrounding rapid transit stations has been widely
reported. Newspapers and private companies undertaking land valuations have reported
that housing close to a rapid transit station realizes a premium of approximately 9%,
while rents in the vicinity of Bangkok Transit System stations were reported shortly after
opening to be 25% higher than previously.
Transit Cooperative Research Program (2009). Local and Regional Funding Mechanisms for
Public Transportation. Washington, D.C., Transportation Research Board: 72.
This report compiles a comprehensive list of funding sources that are in use or have the
prospect of being used at the local and regional level to support public transportation.
The results of the project are intended to serve as an updateable, interactive resource on
local and regional funding sources for public transportation as well as a guide to the
evaluation and enactment of new or expanded funding from local or regional sources.
Value capture is included in the section on revenue streams from projects.
Transportation Research Board (2011). Equity of Evolving Transportation Finance Mechanisms,
Special Report 303. Washington, D.C., National Academy of Sciences.
This book recommends actions to be taken by public policy makers in four general areas:
1) examine the details of evolving and existing transportation finance polices to assess
their equity, (2) Ask a broad range of questions about equity impacts, (3) Engage the
public in decision making and (4) Develop a better understanding of travel behavior and
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its consequences. It addresses value capture strategies as a potential finance source, with
specific noting of impact fees, special assessments, and tax increment financing.
Trench, Alan (2013). Funding Devo More: Fiscal Options for Strengthening the Union. Devo
More. London, England, Institute for Public Policy Research: 42.
This paper is the start of a project examining how fiscal devolution for Scotland, Wales
and Northern Ireland can be accomplished. It examines financial devolution from two
dimensions: what is desirable from the point of view of the UK as a whole and what is
practical. Part of the report examines in detail land taxes and concludes that all land
taxes should be devolved to local government.
Tsaples, Georgios, et al. (2013). A Shock to the System: How can Land Value Taxation change
the Face of Cities? Systems Dynamics 2013 conference. Cambridge, MA, Faculty of
Technology, policy and management: 17.
Using Forrester's urban dynamics model, this paper simulates the implementation of a
land value tax along with the elimination of all other taxes. It finds that the results are
nearly identical to the case in which all the taxes existed. It also finds that if the land
value tax is introduced from the beginning--with no other taxes present--the city gets the
best results. The timing of implementation and the level of the land tax are two crucial
factors.
Tsay, Shi-Pei and Victoria Herrmann (2013). Rethinking urban Mobility: Sustainable Policies
for the Century of the City. Washington D.C., Carnegie Endowment for International Peace: 78.
Across the world, local authorities have increased their range of options to finance
transport projects. These options should reflect the context of the transport project. This
principle can be observed when employing the financing strategy of value capture,
defined as the “family of public finance mechanisms that raise funds in proportion to the
increase in land value associated with new or improved public infrastructure.” It is called
“value capture” because the goal is to secure part of the value a given project adds to an
area in order to finance the transportation project itself. Value capture is possible only
when there is strong land-use management to guide decisions by the developers and
transportation planners toward the most financially favorable combination of uses.
Additionally, increasing taxes based on the value of land instead of the building type
could encourage sustainable transportation practices and more compact development. The
land-use tax structure is best used to fund a system-wide improvement, not a single
transit development
Tsui, Steve Waicho (2008). Alternative Value Capture Instruments: The Case of Taiwan.
Making the Property Tax Work. R. Bahl, J. Martinez—Vazquez and J. Youngman. Cambridge
MA, Lincoln Institute of Land Policy: 127-161.
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After noting that China has had some sort of land tax for over 4,000 years, the author
gives a brief review of the tax structure in Taiwan, discusses the importance of both land
value taxes and land value increment taxes for local government finance in Taiwan. The
author then engages in a more detailed discussion of their performance in value capture
potential of both types of taxes. There is also a discussion of the land use regulatory
system and some policy suggestions.
Turnbull, Katherine F. (2010). Transportation Systems for Livable Communities. Transportation
Systems for Livable Communities, Washington D.C., Transportation Research Board.
Incorporation of real estate development potential in the transit planning process was
often spurred by the need to finance a significant portion of the transit capital costs from
real estate development–related revenues (e.g., tax increment financing, assessment
districts, and joint development). This process, commonly referred to as value capture,
can become a critical tool in aligning transit planning with real estate development.
Additionally, we need stronger evidence of the link between transit and livability.
Additional research on transit livability performance measures would be beneficial. It is
important to keep the audiences for performance measures in mind and to provide
consistency in performance measure definitions but not impose standards or targets.
While research has been conducted on value capture, much of it is too academic for the
public to understand or transit staff to use.
Turnbull, Shann (2007). Affordable housing policy: Not identifiable with orthodox economic
analysis, SSRN: 21.
Orthodox economic analysis cannot identify how to provide affordable housing on a
sustainable basis for a variety of reasons. Duplex property rights are described that
separate the value of buildings from the values created in their land by neighboring
infrastructure investment. This allows the increase in land values created by the
infrastructure expenditure to be used to make all neighborhood sites self-financing, to
halve the cost of urban housing and to eliminate the cost of land for commercial
developments. The resulting increase in economic efficiency improves equity by
providing ways to distribute wealth to citizens without government taxes or welfare. The
paper recommends that approval for public infrastructure expenditure and/or
development be made conditional upon adopting duplex ownership of urban realty.
Ueda, Taka, et al. (2009). Computable Urban Economic Models in Japan. EASTS-Japan
Working Paper Series. Tokyo, Japan: 23.
This paper develops a computable urban economics model that is used for examining
urban policies. The paper presents a general and standard form of the model and
describes its maximizing principles. Equilibrium is described as a set of solutions to a
system of equations. The paper notes that changes in land value because of public
infrastructure projects can be fitted into the model for practical requires in policy making.
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It also notes some complications that the model implies for value capture and which the
policy maker must confront.
Uusivuori, Jussi and Jari Kuuluvainen (2008). "Forest taxation in multiple-stand forestry with
amenity preferences." Canadian Journal of Forest Research 38(5): 806-820.
This article investigates the effects of taxes on landowner behavior, when the landowner
has a utility function that incorporates both consumption and the amenity values of a
standing forest. This general equilibrium theoretical model leads to the conclusions that
as long as the wealth level of nonindustrial landowners continues to increase, sales or
profit taxation will lead to longer rotation lengths, and voluntary forest conservation will
increase. Further, it shows that in order to prevent future timber supply levels from
decreasing, a lump-sum land value tax in combination with profit or sales taxes will
partially restore the lengthening effects of these latter two taxes.
Vadali, Sharada, et al. (2011). Planning Tools to Assess the Real Estate Leveraging Potential for
Roadways and Transit: Technical Report. College Station, Texas, Texas Transportation
Institute, The Texas A&M University System: 222.
The State of Texas has passed several bills allowing innovative financing and alternative
options for project financing. Among these is the Senate Bill 1266 (SB1266), passed in
the 80th Legislative Session, which provides the legal backdrop for the creation of an
institutional arrangement called the Transportation Reinvestment Zone (TRZ). A TRZ
facilitates value capture of the potential benefit or tax increment from a future
transportation project. This research aims to help the implementation of SB1266
provisions across Texas. It defines value capture (VC) as an innovative financing method
that relies on leveraging the real estate potential brought by urban asset improvements.
VC refers to the process by which all or a portion of increments in land value attributed
to community efforts rather than landowner actions are recovered by the public sector.
Commonly known examples of such value capture are the TIF and the TRZ models seen
across the country. Also included in this category are special assessment districts, public
improvement districts, impact fees, and other examples.
Vadali, Sharada, et al. (n.d.). Transportation Reinvestment Zone Handbook. T. A. M. Texas
Transportation Institute. College Station, TX 77843-3135, Texas Department of Transportation:
60.
This handbook is based on the previous report by Vadaloi. It explains the Texas Senate
Bill 1266 (SB1266), that was passed in 2007 as part of the 80th Legislature to provide the
legal backdrop for the creation of an institutional arrangement called the Transportation
Reinvestment Zone (TRZ) to facilitate value capture of the potential benefit or tax
increment from a future transportation project. There are only three implementation
projects to date using this funding mechanism, therefore the exposure to this concept is
still minimal. As a new value capture strategy, TRZs do have similarities with other value
capture methods adopted in Texas, but still remain different in subtle ways.
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Vadali, Sharada R., et al. (2009). "Financial Model to Assess Value Capture Potential of a
Roadway Project." Journal of the Transportation Research Board 2115: 1-11.
Value capture is a form of a public-private partnership. It is widely used across the
country and around the world for transit applications; however, its applications to
roadways have only recently emerged into discussions of roadway finance, out of
motivation stemming from the transportation funding crisis. Two states have legislative
provisions for enabling value capture for financing transportation. In Texas, this takes the
form of a transportation reinvestment zone (TRZ). This paper presents specifications for
a TRZ based on a case study approach and then applies a financial evaluation model
based on those specifications to a case study corridor in El Paso, Texas, to assess
preliminary revenue sources and cash flows that can be accrued for value capture
bonding capacity.
Vaghi, Carlo and Alberto Milotti (2009). "New Instruments for Financing Transport
Infrastructures in Italy (English Summary)." Econmia dei Servizi 4(3): 377-397.
This article analyzes three methods for financing infrastructure: takeover compensation
(applied to infrastructure built after project financing), value capture (assess part of the
transport systems benefits by capturing he increase in property value experienced after
the opening of the new infrastructure), and “Euro vignette” Directive (road user charges).
Article analyzes four Italian projects through the application of these methods. Written in
Italian with an English summary.
Vaidya, Chetan (2009). Urban Issues, Reforms and Way Forward in India. New Delhi, India,
Ministry of Finance, Government of India: 40.
The paper analyzes urban trends, service delivery, institutional arrangements, municipal
finances, and innovative financing for India. India’s future strategy should focus on a
variety of activities, including a further focus on regulation, innovative financing and
PPP, and different approach of supporting reform-linked investments needed for different
states based on level of urbanization. Specific analysis of value capture techniques is
undertaken with a recognition that infrastructure increases the land value and therefore
there is a need to capture it. Increase in land value in turn will lead to an Increment Tax.
Two examples mentioned, but not described, are the Town Planning Schemes in Gujarat
and Maharashtra.
van der Veen, Menno et al. (2010). "Using compensation instruments as a vehicle to improve
spatial planning: Challenges and opportunities." Land Use Policy 27: 1010-1017.
Planners are increasingly adopting market-oriented compensation instruments. This
obligation for compensation also aims to recoup value from those who seem to profit
more from the new regulation than would be just from the perspective of the community.
Compensation schemes therefore often entail a duty falling on those parties that profit
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from the new regulations to pay some of their windfall profits to the government or to
compensate those who have suffered from the same regulations. Another dimension
relates to recapturing the added value of land. Value capturing can be seen as a means by
which compensation is gained from landowners for the added value of land resulting
from new planning regulations. This recouping of value is given legitimacy by the idea
that a certain destination of property in a land use plan does not result in a personal
property right but in a communal property right and that therefore the profits that result
from favorable zoning regulations should also be owned by the community.
Van Hasselt, Kai and Peter Robinett (2010). Innovative Urban Finance Instruments Analyzed
through the Role of Externalities, Incentives and Collective Action. 46th ISOCARP Congress:
13.
Paper covers different ways improvements to the urban environment can be funded.
Paper examines: 1) Business Improvement Districts, 2) Tax Incremental Financing, 3)
Land Banks, 4) Community Development Corporations, 5) Tradable Development Rights
and Floor Area Ratio Bonuses, 6) Public-Private Partnerships/Private Finance Initiatives,
7) Value Capture Finance, 8) Special Government Entities, 9) Usage Pricing and 10)
Micro-Finance, -Insurance, - Incentives. The three interlinking concepts of externalities,
incentives and collective action help to frame how the city and the landscape are
influenced by economic factors. The notion of externalities in particular plays a crucial
role in this paper.
Vaz Milheiro, Ana Cristina Fernandes (2012). "The Colonial Planning Office and the layout of
Luso-African cities in the last stage of the Portuguese colonia time." Brazilian Journal of Urban
Management 4(2): 215-232.
The Brazilian Betterment Levy is a tax that allows government to recover the increase in
land values that comes from a public intervention. The origin of this tax goes back to the
Portuguese “Philippines Ordinances” which allowed fintas to raise money to build
sidewalks and bridges. They started in Portugal in 1603, and in Brazil the Betterment
Levy was formally instituted in 1934. This article explains this history. This article is in
Portuguese
Vichiensan, Varameth and Kazuaki Miyamoto (2010). "Influence of Urban Rail Transit on
House Value: Spatial Hedonic Analysis in Bangkok." Journal of the Eastern Asia Society for
Transportation Studies 8: 11.
The objective of this study is to examine the varying relationship between the property
value and its determining factors such as accessibility to urban rail. A hedonic price
model of medium-income-class housing in Bangkok taking into account the varying
relationship (Geographically Weighted Regression, GWR) is estimated. The GWR model
has revealed that the influence of urban rail transit has on the residential property
(townhouse) value substantially varies over space. This implies that an urban railway has
large contribution to land and property value uplift in the station catchment areas. It is
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showed that transport accessibility may have a positive effect on land value in some areas
but in others a negative or no effect, suggesting that a uniform land value capture would
be inappropriate
Vincent, Joshua (2012). "Neighborhood Revitalization and New Life: A Land Value Taxation
Approach." American Journal of Economics and Sociology 71(4): 1073-1094.
Argues that low land taxes lead to speculation and private land banking (assuming the
landowner can hold out). A higher tax on land values that is coupled with a lower tax on
structures creates an incentive to sell the land or do something with it. Examining
Clairton, Pennsylvania, adoption of a land value tax demonstrated neighborhood
revitalization. Contrasting this to vacant properties contribution to the city budget tripled.
Also finds that land value tax systems have to be marketed competently and that the rates
have to be high on land and low on structures.
Vittal, Juan Francisco Rodriguez (2012). Land Readjustment (LR/P) Experience in Colombia.
New York, NY, United Nations: 123.
In Colombia, Land Readjustment (LR) is a land management tool envisaged since 1989
and linked directly to the development or renewal of urban projects for the city. Land
Readjustment must be used when a new lot configuration is necessary. The law’s guiding
principles intend to ensure the right for all citizens, to seek a more equitable land-value
capture distribution, looking to implement the principle of the social function of property.
The law explicitly allows a land-value capture tax. The information in this document
illustrates Land Readjustment as a tool/mechanism that regulates the voluntary
relationship between public and private actors around three main axes: First, overcome -
voluntarily – the typical “lot-to-lot” development and the appropriation of land-value
increase by land owners that has resulted in urban inequality; second, how urbanization
infrastructure gets paid for and by whom and last the spatial and social inclusion of the
urban poor in urban development.
Voith, Richard P. and Susan M. Wachter (2012). The Affordability Challenge: Inclusionary
Housing and Community Land Trusts in a Federal System. Value Capture and Land Policies. G.
K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln Institute of Land Policy: 261-281.
This chapter assesses the role of land value capture in enabling inclusionary housing and
community land trusts in their attempts to increase the stock of affordable housing. The
chapter utilizes a federalism perspective in the analysis. It then examines the economics
of preserving affordable housing and the role of land value capture in facilitating this
provision. Finally, the authors study affordable housing policies in New Jersey and
Massachusetts as well as community land trusts in the United States and the United
Kingdom.
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Walters, Lawrence C. (2012). Are Property-Related Taxes Effective Value Capture Instruments?
Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln
Institute of Land Policy: 187-214.
Through a combination of literature review and preliminary empirical work (primarily
based in the United States), this chapter examines some of the practical aspects of land
value capture. It concludes that certain conditions must be met for land value capture to
take place: population growth, public infrastructure investment, and/or improved
services must result in increased private land values; the increased values must be
identified by the property tax valuation process; entities levying a property tax must
maintain an effective tax rate sufficient to result in a higher tax bill on the affected land;
and, the additional revenue must be adequate to pay for the required share of
infrastructure investment. It notes that the last three conditions are not routinely met,
even in developed countries.
Walters, Lawrence C. (2012). Land Value Capture in Policy and Practice. Annual World Bank
Conference on Land and Poverty. Washington D.C., World Bank: 20.
Land Value Capture (LVC) has long been advocated by international organizations as a
funding source to support local improvements in urban infrastructure and services. This
paper examines efforts to implement LVC. The distinction is drawn between cost
recovery and LVC more broadly. Tools for cost recovery are assessed and successful
strategies described. Available tools for LVC are evaluated and generally found wanting.
An alternative approach using a restructured annual land tax is proposed.
Wang, Chia-wei (2011). Three Essays On Property and Land Taxation: The Differential Land
Tax Across Sectors. Economics. Chicago, Illinois, University of Illinois at Chicago. Ph.D.: 167.
This Ph.D. thesis has three essays. The first uses a static three factor general equilibrium
model to measure the incidence of a land tax. It finds that land bears the entire tax
burden only when the land value tax is uniform across land uses; part of the differential
land tax is shifted forward to housing consumers. The second essay uses an optimal tax
model that ultimately suggests that it is optimal for local governments to tax different
land uses at the same rate only in the rare cases when land areas are equal and production
technologies are identical across sectors. The third essay finds that when housing prices
are exogenous, the optimal tax rate is higher in the sector that has more inelastic demand
for land, while when housing prices are endogenous, it is optimal for local governments
to tax housing land at a higher rate than non-housing land.
Wang, Sichong Value Capture and Non-Financial Compensation in Urban Village
Redevelopment in China: An Attempt for a More Balanced Value Distribution in
Redevelopment. Urban and Regional Planning. Amsterdam, the Netherlands, University of
Amsterdam. Master's' in Urban and Regional Planning: 107.
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The author is interested in looking for a more balanced value distribution in
redevelopment through value capture and non-financial compensation (NFC). By
reviewing literature, interviewing key representatives of interested parties and attending
meetings, the research found that different interested parties have diverse views on the
value changes, value capture mechanisms, and the possibility of using NFC. The research
questions of this study are: how do different interested parties in the case of an urban
village perceive the value changes that happen in redevelopment and the mechanism of
value capture and non-financial compensation? The goal here is to show a more balanced
value distribution does follow the same logic as that the wealth of a city is collectively
created and should not be exclusively owned by some certain group of people.
Warsh, Erica (2012). Assessing the Role of Planning Interventions in Achieving Desired Land
Use Impacts Around Toronto's Yonge and Spadina Subway Lines. Planning. MA in Planning:
202.
This master’s thesis analyzes land use patterns surrounding two subway lines in Toronto.
As part of the analysis, the author examines interview results of municipal finance
officers and planners as well as developers. She finds differences in conclusions
concerning the impacts and desirability of a land tax reached by these three groups, with
the differences not always reflecting theoretical conclusions.
Watson, Vanessa (2009). "The planned city sweeps the poor away…: Urban planning and 21st
century urbanisation." Progress in Planning 72(3): 151-193.
Paper explores the idea that urban planning excludes the poor. Paper reviews newer
approaches in planning to offer ideas for pro-poor and sustainable planning. In this
context, here is a new interest in capturing rising urban land values through property and
capital gains taxes by governments for redistributive purposes. Value capture is an
effective way of doing this and is also useful to control land use, finance urban
infrastructure, and generate additional revenue at the local level. This increase in urban
land values needs to be “socially harvested.” Principle of VC has good potential to allow
city governments to benefit from private sector driven urban projects. It may be that
funds from value capture can be equitably and transparently raised and redistributed by
local governments. However, some kind of oversight would need to be in place to ensure
that this occurs.
Waweru, Rose (2007). Exploring innovative strategies for local infrastructure financing through
value capture: Potential Application in a Rezoned Neighbourhood: Kilimani, Nairobi. Urban
Management and Development. Rotterdam, The Netherlands, Lund (?). Mastter's: 91.
The main objective of this research is to study the potential application of innovative
value capture mechanisms for financing the upgrading of infrastructure in Kilimani, a
neighborhood located in Nairobi. Four case studies on innovative financing strategies
based on value capture are studied. This study further assesses the local context of
Kilimani, the changes in land values since the rezoning policy was passed, the
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perceptions of developers, property owners, and municipal policy makers on their
involvement in the infrastructure development and financing process and the institutional
framework of the municipality. Data include interviews with the relevant actors, key
members of a policy review exercise and property and valuation agents. Secondary
sources include newspaper articles, the Internet, journals, policy minutes and reports.
Based on the data collected and the respective analyses, developer-centered approaches
stand out as the most appropriate tools for application.
Weber, Rachel, et al. (2008). "The Effect of Tax Increment Financing on School District
Revenues: Regional Variation and Interjurisdictional Competition." State and Local
Government Review 40(1): 27-41.
This study estimates the extent to which TIF affected the property tax revenues of school
districts in Illinois between 1990 and 2000 and tax rates in 2001. Although, in the
aggregate, TIF tends to raise tax rates, the local economic development tool slowed
property tax revenue growth in downstage urban areas but increased growth in rural
districts. TIF had little effect in the Chicago metropolitan region, possibly due to
development in non-TIF portions of the school districts, intergovernmental agreements
for sharing TIF revenues, and the compensatory effects of the state school equalization
formula. The findings point to the need to analyze interjurisdictional relations in different
geographic contexts. TIF also has vertical effects: it potentially "captures" revenues that
might have otherwise gone to overlapping taxing jurisdictions within the same
municipality. Value capture is possible because property taxes collected on the
incremental value must be channeled back into the TIF district for development or
repayment of debt to fund TIF projects.
Weber, Rachel and Sara O'Neill-Kohl (2013). "The Historical Roots of Tax Increment Financing,
or How Real Estate Consultants Kept Urban Renewal Alive." Economic Development Quarterly
27(3): 193-207.
Scholars often explain the rise of tax increment financing (TIF) as a natural progression
toward localized revenue sources born of devolution, increased interlocal competition for
business investment, and fiscal constraint. Although such factors provide important
context, the authors' genealogy of TIF in the state of Illinois reveals that critical actors—
private real estate consultants—actively promoted the adoption and subsequent
promotion of TIF as an economic development tool. Through interviews and a review of
primary documents, the authors uncover a network of private consultants who had prior
experience shepherding federal urban renewal dollars to cities and who later mobilized
concerns around the 1970's deindustrialization crisis to steer the use of property tax
incentives from job creation/retention to real estate development. TIFs are a textbook
example of what public finance economists call “value capture”.
Webster, Chris (2010). "Pricing accessibility: Urban morphology, design and missing markets."
Progress in Planning 73(2): 77-111.
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This article attempts to put a price, through various mechanisms, on urban design. A land
tax is one of these mechanisms. Discusses Britain’s attempt at a 100 percent betterment
tax and how it failed, and concludes that the fundamental problem of taxing the full
unearned increment takes away an incentive for an individual to invest in private land and
therefore reduces the supple of private investment. Compares this to China in which the
state does all of the investment. All done in the context of accessibility pricing.
Wetzel, Dave (2007). Innovative ways of financing public transport. Proceedings of the
European Transport Conference, 2007. Leiden, The Netherlands: 7.
This presentation by the Chair of the Labour Land Campaign advocates moving to a land
tax to finance public transportation. It argues that moving to a land tax to finance
transport improvement generates a virtuous economic cycle that is win-win for all—
including the landowners who are being taxed. Notes that a location benefit levy (a land
value tax) would apply to all sites which would be valued annually for their rental income
based on optimum use and ignoring all improvements. Thus, an empty site with planning
permission would pay the same tax as an identical site next door which has a similar size
office. There would be no increase in tax liability for improving a building. Argues that
it would reduce sprawl, expand business, and workers would increase quality time with
their families. Also argues against a development land tax. Nice emotional talk.
Wilcox, Carol (2010). Taxing Natural Rents. Tax Justice Focus. C. Wilcox. UK, Tax Justice
Network. 6: 15.
This particular edition of this newsletter has several pieces on land taxes. Tideman on the
land tax as a tool for economic development identifies six ways that land value taxation
promotes economic development; Wilcox argues that land rent is the natural source of
public revenue; Law argues that a land value tax is actually a payment for benefits
received; Cato writes about a land value tax as a green tax; and Vincent examines the use
of land value taxation in Harrisburg and Pittsburgh.
Wildasin, David (2013). Urban Public Finance. Florence, Kentucky, Routledge.
This textbook includes a formal discussion of the Henry George Theorem--local public
expenditures should be equal to local land rents, with land rents entirely taxed away at an
optimum. Notes that there exists a modified Henry George Theorem that resource rents
plus non-wage income is equal to public expenditures net of head taxes.
Willoughby, Christopher (2013). "How much can public private partnership really do for urban
transport in developing countries?" Research in Transportation Economics 40(1): 22.
Research has shown that heavy investment in strengthening the transport network is
seldom sufficient on its own to generate wider economic growth, but that, well planned, it
can strongly affect the physical location of such growth and enhance its overall efficiency
and scale. It is therefore reasonable to seek some contribution from property owners and
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land resources to the capital costs of transport system development. North America and
some European countries have given increased emphasis to up-front impact fees intended
to recover from developers the costs of offsite infrastructure reinforcements necessitated
by their real estate development projects. Increasing use is being made in some
developing countries of charges for increases in permitted Floor Area Ratios or Floor
Space Index, reflecting the increased densities required for considerations of efficiency
and sustainability. Several areas need attention in most countries. One is that pricing
based on increases in Floor Space Index merits particular pursuit as the most promising
way of capturing value from urban infrastructure improvements.
Witzell, Jacob (2013). Possibilities for property related value capture in transport infrastructure
projects: Swedish institutional arrangements in comparison to London and Hong Kong. School
of Architecture and the Built Environment. Uppsala, Sweden, Uppsala University. Master: 84.
In Swedish. Public investment in transport infrastructure often generates increased land
values. The possibilities for value capture is determined by factors such as land
ownership patterns, the organization of planning and implementation of transport
infrastructure and land development, as well as the design of legislation, taxes and
charging instruments. This essay explores the possibilities for property related value
capture in Sweden. A case study on the financing of a commuter rail station and traffic
junction in Vegastaden, Haninge, exemplifies how value capture can be applied under
current institutional arrangements. Case studies on value capture methods in London and
Hong Kong show how value feedback can be applied under different institutional
arrangements. The institutional conditions in Sweden are compared with those in London
and Hong Kong based on theories of land value, club theory, transaction costs and
negotiations.
Wolf-Powers, Laura (2012). Community Benefits Agreements in a Value Capture Context.
Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA, Lincoln
Institute of Land Policy: 217-228.
This chapter describes community benefits agreements (also known as movement for
accountable development) as a method of inserting local stakeholders, typically low-
wealth households in the vicinity of the development, into the process of recovering some
portion of the land value created through the public investment that was part of the
agreement. These often tend to be controversial because of economic, political, and
ethical dimensions. The chapter also includes a case study of a community benefit
agreement in Denver.
World Bank Urban Sector (2009). Cities and Climate Change: Responding to an Urgent Agenda.
5th Urban Research Symposium. Marseilles, France, World Bank Urban Sector: 12.
This Symposium aims at pushing forward the research agenda on climate change from a
city’s perspective. Simultaneously, with a high concentration of economic activity and
population they are also vulnerable to the impacts of climate change. One of the main
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entry points for engaging cities on climate change is through disaster risk management,
specifically through policies and incentives that are in the pecuniary interest of cities. For
example, with better land zoning and building codes as means of reducing climate
change/disaster-related risks, city officials can increase “value-capture” through
increased property taxes.
Wyler, Steve (2009). A History of Community Asset Ownership. London, UK, Development
Trusts Association.
Included in this discussion of community trusts is a history of the land value tax (and
Henry George) in England.
Youngman, Joan (2011). "TIF at a Turning Point: Defining Debt Down." State Tax Notes: 321-
329.
Discusses TIF mechanisms, how they work, potential problems, and gives case studies of
California, Illinois, and Florida.
Yowell, Aaron J. (2007). "That's Where We Print the Money: Trading Increased Density for
Public Amenities." NYU Environmental Law Journal 15(3): 493-539.
Density bonus programs can be defended on three rationales: the windfall rationale, the
value-creation rationale, and the externality rationale. According to windfall recapture
theory, when a change to land use regulation increases the value of property, the property
owner receives a windfall because she has done nothing to bring about the increase in
value. Applied to density bonus programs, a municipality can recapture this value by
requiring an amenity in return for the density bonus. However, application of the windfall
rationale to density bonus programs encounters two problems. First, how much of the
increase in value is a benefit granted by the municipality, and properly subject to
recapture, and how much is due to investment by the property owner and therefore should
remain with the property owner? Second, other legal structures may recapture some of
the windfall gains that density bonus programs aim to recapture.
Yuniati, Vera (2013). Inclusionary Housing in Indonesia: The Role of Balanced Residential
Ratio 1:3:6 in Makassar. Urban Management and Development. Rotterdam, The Netherlands,
Erasmus University. MSc. in Urban Management and Development: 75.
This research attempts to find out how inclusionary housing is implemented in Indonesia
through the balanced residential ratio 1:3:6 regulation. There are two main objectives of
the regulation: (1) to produce affordable housing, and (2) to encourage more socially
integrated development via mixed-income residential areas and cross-subsidies.
Henceforth, every new residential development by a private developer should reflect the
1:3:6 ratio (1 high-income, 3 middle-income and 6 low income units). Using the case of
Makassar City, the capital city of South Sulawesi Province and the largest city in the
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eastern part of Indonesia, the author assesses the implementation of the balanced
residential ratio from four dimensions - legal, economic, financial, and social - during
period 1993 – 2003. Those dimensions are discussed through the application of land
value capture.
Yusuf, Bacry, et al. (2009). Land Lease Policy in Addis Ababa. Addis Ababa, Ethiopia, Addis
Ababa Chamber of Commerce: 140.
Part of this paper relates value capture to land leasing. Legal scholars view property in
land as a bundle of rights. According to this view, the government can retain the right to
own land and assign to a private party the right to use, develop, transfer, inherit, and
benefit from land. The private party would be entitled to enjoy the rights so granted only
for a specified period of time and as stipulated in the land lease contract. In Ethiopia, land
is owned by the state. Long-term leases are, however, available for urban land for periods
of 50 to 99 years. The lease is transferable, subject to capital gains tax and can legally be
used as collateral, at least for the lease value. Land lease offices of the regional
governments or city administrations issue the land lease.
Zegras, Christopher, et al. (2013). Sustaining Mass Transit through Land Value Taxation?
Prospects for Chicago. Cambridge, MA, Massachusetts Institute of Technology: 130.
This paper focuses on the economic link between transportation and land use as exhibited
in property values, with the express purpose of viewing how this link should and can be
exploited as a transportation finance tool. In particular, we examine the land value
created by urban rail transit access. The benefits of transit investments to the local
economy should be reflected in business profits, individual income, and property values.
We focus on this last source – the one most tangible for local government revenue
generation. We examine these effects and possibilities in the City of Chicago, exploring
the relationship between urban rail services, accessibility, and residential and commercial
property values.
Zhang, Anming (2012). Airport Improvement Fees, Benefit Spillovers, and Land Value Capture
Mechanisms. Value Capture and Land Policies. G. K. Ingram and Y.-H. Hong. Cambridge MA,
Lincoln Institute of Land Policy: 323-348.
Since there will be a reduction of federal grants to large and medium-sized airports, and
since there will be no increase in the passenger facilities charges to offset these
reductions, airports will need to utilize additional funding sources for capital
improvements. This chapter examines alternative methods that might be used for these
improvements. These include internalizing the positive externalities that airports
generate, looking at the airport as a public good and so forcing people other than
passengers to for infrastructure, and whether any land value captured mechanisms exist
through which these internalizations can be realized.
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Zhao, Zhirong (Jerry), et al. (2010). Funding Surface Transportation in Minnesota: Past, Present,
and Prospects. Minneapolis, MN, Center for Transportation Studies, University of Minnesota:
65.
The funding and financing of transportation is a complex process requiring joint efforts
of federal, state, and local governments. In recent years, depleting state and local budgets
and growing capital and maintenance costs related to transportation have been a common
challenge. This report reviews the funding of public surface transportation systems
(including highways, transit and local roads) in Minnesota. We look at how transportation
projects have been funded, identify current and future policy issues likely to affect
transportation funding, and go over some of the funding options suggested by other
researchers. Included is an extensive discussion of value capture and its implementation
as well as a brief discussion of land taxes.
Zhao, Zhirong (Jerry), et al. (2010). "Tax Increment Financing as a Value Capture Strategy in
Funding Transportation." Journal of the Transportation Research Board 2187: 1-7.
Value capture strategies apply a benefit principle to public infrastructure investment by
creating a mechanism to capture the value created by infrastructure improvements. This
paper focuses on one value capture strategy, tax increment financing (TIF), which uses
future increases in property taxes generated by infrastructure improvements to finance the
initial costs of the development. This paper reviews the history of TIF, its extent of use,
and its mechanisms. Then it evaluates the applicability of TIF as a revenue strategy
based on four criteria: efficiency, equity, revenue sustainability, and feasibility. It
provides recommendations on how to improve and expand the use of TIF.
Zhao, Zhirong (Jerry), et al. (2012). "Value Capture for Transportation Finance." Procedia--
Social and Behavioral Sciences 48: 435-448.
Value capture seeks to generate revenue by extracting a portion of the gains in the value
of land that result from improvements to transportation networks. In this paper we
identify value capture strategies, including land value taxes, tax increment financing,
special assessments, transportation utility fees, development impact fees, negotiated
exactions, joint development, and air rights. We evaluate each of the policies according to
four criteria: efficiency, equity, sustainability, and feasibility. The value capture concept
is placed within a more general framework of transportation finance that emphasizes the
relationship between different types of charges and groups of beneficiaries from
transportation investments.
Zhao, Zhirong (Jerry) and Kerstin Larson (2011). "Special Assessments as a Value Capture
Strategy for Public Transit Finance." Public Works Management and Policy 16(4): 320-340.
Applying a benefit principle, value capture strategies enable the public sector to harness
the value created through infrastructure improvements and to use the funds to pay for
such improvements. This article focuses on special assessments by which property
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owners located within a designated geographic area, or “special assessment district
(SAD),” pay for special benefits accruing to their properties that are close to certain
infrastructure improvement. The authors evaluate the applicability of special assessments
in funding public transit on the basis of four criteria: efficiency, equity, sustainability, and
feasibility. Finally, the authors discuss suitable conditions for special assessments and
provide legal, administrative, and technical recommendations for their use in
transportation finance.
Zhao, Zhirong (Jerry) and David Levinson (2012). "Introduction to the special issue on value
capture for transportation." Journal of Transportation and Land Use 5(1): 1-3.
To understand value capture better, the authors propose a general framework of transport
finance. Following the benefit principle that the cost of transportation for a contributor
should be proportional to the benefits received, different instruments may be designed to
match different categories of benefits and the different ways in which these benefits are
measured. The beneficiaries can fall under three broad categories: the unrestricted general
public; restricted non-user beneficiaries; and direct users of facilities.
Zhao, Zhirong (Jerry), et al. (2011). Advancing Public Interest in Public-Private Partnership of
State Highway Development. St. Paul, Minnesota, Minnesota Department of Transportation,
Research Services Section: 66.
The purpose of this project is to study the public interest associated with PPPs, with the
goal to maximize efficiency gains, mitigate potential risks, and address public concerns in
launching and deploying PPPs in state highway development. In value-capture PPP
options, the private sector may participate in project delivery by contributing resources,
either financially or in other ways, in exchange for enhanced development opportunities
or increased property value as a result of transportation improvement. We include three
examples of value-capture PPP. Note that value-capture options are flexible upon
negotiated agreement, and they may be combined with other types of PPP in a project.
Options analyzed include: Joint Development Agreements, Negotiated Exactions, and Air
Rights Development
Zhao, Zhirong (Jerry), et al. (2012). "Joint Development as a Value Capture Strategy in
Transportation Finance." Journal of Transportation and Land Use 5(1): 5-17.
This article examines joint development as a value capture strategy for funding public
transportation. We start from the concept of joint development, its rationale, a brief
history, and the extent of its use. Joint development projects in Hong Kong, Taiwan,
Tokyo, and Thailand are profiled, as well as domestic examples in Washington, DC, New
York, NY, and Portland, OR, etc. Then we provide a framework to classify joint
development models by ownerships (public or private) and by types of transaction (real
property or development rights). Next, joint development is evaluated along four revenue
criteria including efficiency, equity, sustainability and feasibility. Finally, we summarize
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the advantages and disadvantages of joint development as a transportation finance
strategy, and provide recommendations for policy consideration or implementation.
Zwanikken, Brendan (2012). Regional airline-rail alliances as a competitive strategy for airports.
Aviation. Wellington, New Zealand, Massey University. Masters of Aviation: 88.
This Master’s thesis finds that government involvement in transport infrastructure is
necessary since there are significant amounts of risks and costs which may cause private
sector companies to stay way. This involvement includes land value capture (LVC),
Public-Private Partnerships, and subsidies and grants. Land value increases with the
installation of transit infrastructure and makes LVC an attractive form of public
financing. LVC can occur in various forms, from simple capital gains tax to more
complex models. An example of a non-capital gains tax model is where the government
or private companies purchase large parcels of land, develop with attractive infrastructure
such as transit services and then sell the parcels for a higher price. The value is captured
and returned to the infrastructure cost. Notes that LVC can be overlooked as a financing
tool.