@article{723475ef6b464fe69d6bf84b9dd06419,
title = "Taxation on land value and development when there are negative externalities from development",
abstract = "This article employs a real options framework to investigate the design of taxation on both land value and development in a competitive real estate market. We assume that developed properties reduce open space, and thereby harm urban residents. However, ignoring this negative externality, landowners will develop properties sooner than is socially optimal. A regulator can correct this tendency by imposing a positive tax on development or a negative tax on land value. Alternatively, the regulator can implement both instruments simultaneously, in which case an increase in the tax rate on development will be accompanied by an increase in the tax rate on land value, and vice versa.",
keywords = "Negative externality, Optimal taxation, Real options",
author = "Jou, {Jyh Bang} and Tan Lee",
note = "Funding Information: Acknowledgements We would like to thank the editor (Kanak Patel), two anonymous reviewers, Yeh-Ning Chen, Steven Ott, Dean A. Paxson, Brenda A. Priebe, Dogan Tirtiroglu, and participants of both the 2006 IEFA Conference and the 2006 Cambridge-UNCC Symposium for their helpful comments on earlier versions of this manuscript. Financial support under Grant NSC 95-2416-H-002-045 from the National Science Council, Executive Yuan, R.O.C., is gratefully acknowledged.",
year = "2008",
month = jan,
doi = "10.1007/s11146-007-9072-4",
language = "???core.languages.en_GB???",
volume = "36",
pages = "103--120",
journal = "Journal of Real Estate Finance and Economics",
issn = "0895-5638",
number = "1",
}