INTEGRATING LAND-VALUE TAXATION WITH THE INTERNALIZATION OF SPATIAL EXTERNALITIES

Describes procedures that might be used to combine collection of the full rental value of land for public purposes with assignment of appropriate taxes and subsidies for activities with spatial externalities. The paper begins with a discussion of reasons for pursuing these goals and the conditions that would obtain if they were satisfied. Next, procedures are described. The proposed procedures for internalizing spatial externalities are then compared with zoning. The following sections discuss the connections between the two sets of proposed procedures and the implications of the proposals for government structure. -from Author