From Stagnation to Growth: Critical Thresholds and Land Value Tax

Land Value TaxOne potential solution lies in targeting the ‘stock’ rights associated with landownership, yet to do so would require contextual sensitive and a significant undermining of investment incentives. A more viable route is to target the ‘flow’ returns from landownership, shaping individual behaviour toward cooperation. In Venice this came because individualistic exploitation of ‘stock’ rights would have brought little ‘flow’ return, discouraging individualism.To align flow returns with communality, charges must dynamically reflect the externalities landowners generate, whilst adapting to shifting urban contexts over time. In practice an economically simple but politically convoluted solution may already have presented itself, Land Value Tax (LVT).