Journal article

The Effect Of Industrial And Commercial Land Consumption On Municipal Tax Revenue: Evidence From Bavaria

Year:

2018

Published in:

Land Use Policy
municipal tax-revenue
built-up areas
land consumption
business tax revenues
land development

This paper aims to quantify the municipal tax-revenue effects of increases in built-up areas. The assumed existence of these effects is one of the key reasons for ongoing land consumption on the part of the municipalities. Some previous case studies have however suggested that these effects may not be large enough, especially in rural municipalities, and would thus make land development unprofitable. We estimate the effect of built-up industrial and commercial (BIC) area change on business tax revenues in cross-sectional instrumental variable estimations. Based on detailed data for Bavaria, we find that an increase in municipal BIC area has a significant and positive tax-revenue effect. The size of this effect differs sharply between urban and rural municipalities and between cities with different population densities. The positive overall effects become much smaller when large cities are excluded from the sample. Based on these findings, we reflect on the tradable planning permits scheme recently discussed in the literature on land use in the context of policies aiming to limit land consumption. In addition, we relate our estimates to the average municipal costs for land development and undertake a number of robustness checks.

Other publications by

36 publications found

2017
Journal article

Spatial Disparities, Transport Infrastructure, and Decentralization Policy in the Delhi Region

Publisher: Journal of Urban Planning and Development

Authors: Artem Korzhenevych, Manisha Jain

2018
Working paper

Investment Subsidies And Regional Welfare: A Dynamic Framework

Publisher: Technische Universität Dresden

Authors: Artem Korzhenevych, Johannes Bröcker

2021
Journal article

Renewable Minigrid Electrification in Off‑Grid Rural Ghana: Exploring Households Willingness to Pay

Publisher: Sustainability

Authors: Artem Korzhenevych, Charles Kofi Owusu

2021
Journal article

Integrating Spatial Development With Infrastructure Provision Along An Envisioned Transport Corridor: A Conceptual Framework And Its Application To India

Publisher: Land Use Policy

Authors: Artem Korzhenevych, Manisha Jain

2020
Book Chapter

From Informal to Inclusive Urbanization: Options for Funding the Transformation in India

Publisher: Engineering Science Reference

Authors: Artem Korzhenevych, Manisha Jain, N. Sridharan

2024
Journal article

New Editors-In‑Chief And Editorial Board

Publisher: Review of Regional Research

Authors: Artem Korzhenevych, Thomas Brenner, Iris Wanzenböck, Kristina Nyström

2017
Working paper

The Effect Of Land Consumption On Municipal Tax Revenue: Evidence From Bavaria

Publisher: Technische Universität Dresden

Authors: Artem Korzhenevych, Sebastian Langer

2013
Journal article

Do The Selected Trans European Transport Investments Pass The Cost Benefit Test?

Publisher: Transportation

Authors: Artem Korzhenevych, Stef Proost, Fay Dunkerley, Saskia Van der Loo, Nicole Adler, Johannes Bröcker

2011
Working paper

Forward Looking Dynamics In Spatial Cge Modelling

Publisher: Institut für Weltwirtschaft

Authors: Artem Korzhenevych, Johannes Bröcker

2020
Journal article

Investment Subsidies And Regional Welfare: A Dynamic Framework And Its Application To The European Regional Policy

Publisher: Regional Studies

Authors: Artem Korzhenevych, Johannes Bröcker