New Policy, New City, and Not Much Carbon Emitted
|November 2, 2013||Posted by Staff under Good Press|
This 2013 excerpt of London School of Economics, Oct 10, is by Blanca Fernandez.
In view of the current environment of budgetary austerity in Europe, municipalities require new local funding methods independent from freezing higher levels of governance funds. Under the present conditions of rapidly rising public debt, loans-based or bonds-financed infrastructure investments do not seem like a feasible option in the years ahead.
However, property values are increasing in most European cities, influencing urban development and urban liveability.
Taxation should not be seen only as a source of revenue for the community but also as a powerful tool to encourage development of desirable locations, to exercise a controlling effect on the land market, and to redistribute to the public at large the benefits of the unearned increase in land values.
UN-HABITAT published in 2011 “Innovative Land and Property Taxation”, in which land and property taxation is described as an effective mechanism for urban transformation.
Land based taxation is increasing its followers worldwide, and especially in Europe. Ireland, Scotland, England and Lithuania are examples of European countries where extensive analysis and discussions have taken place.
If there is institutional will, sustainable transport can be financed locally, accessibility can be improved, and economic potential can be fostered by land-based taxation.