In this contribution we ask the question to what extent it is possible to finance (part of) the costs of infrastructural works by creaming off the value increase enjoyed by owners of property rights which benefit from infrastructure. To answer this, we first investigate the functioning of the land market and how this is affected by infrastructure. Then we describe some research projects which have measured the effects of infrastructure on the value of real estate. Next we look at a number of instruments which offer the possibility of using the income from land in order to finance infrastructural works. Our conclusion is that new infrastructure does indeed give rise to increases in land values, but that further research is needed in order to be able to forecast the size of that effect. For this research it is necessary to work with dynamic models of land prices. Also, if infrastructural works are to be able to participate effectively in the ‘struggle for the residual land value’ policy instruments must be further developed. (Author/publisher)
Abstract