Land value taxation could help to finance low-carbon infrastructure projects in cities suffering from austerity budgets

Many cities across Europe have had budgets for local services and infrastructure projects cut as a result of the financial crisis. Blanca Fernandez writes on the potential for land value taxation, in which taxes are collected on the basis of the value of land rather than simply on property, to help fund low-carbon infrastructure in cities. She argues that land value taxation could generate a number of benefits, and the variety of options available for implementing this form of taxation could help to minimise any undesirable effects that arise in specific locations.