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The effect of industrial and commercial land consumption on municipal tax revenue: Evidence from Bavaria

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  • Langer, Sebastian
  • Korzhenevych, Artem

Abstract

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.

Suggested Citation

  • Langer, Sebastian & Korzhenevych, Artem, 2018. "The effect of industrial and commercial land consumption on municipal tax revenue: Evidence from Bavaria," Land Use Policy, Elsevier, vol. 77(C), pages 279-287.
    • Handle: RePEc:eee:lauspo:v:77:y:2018:i:c:p:279-287
    DOI: 10.1016/j.landusepol.2018.05.052
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    5. Jennifer Gerend, 2020. "Lessons in Rural Persuasion: Village Infill Development in Bavaria, Germany," Sustainability, MDPI, vol. 12(20), pages 1-14, October.
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    7. Junheng Qi & Mingxing Hu & Bing Han & Jiemin Zheng & Hui Wang, 2022. "Decoupling Relationship between Industrial Land Expansion and Economic Development in China," Land, MDPI, vol. 11(8), pages 1-21, July.
    8. Ackerschott, Adriana & Kohlhase, Esther & Vollmer, Anita & Hörisch, Jacob & von Wehrden, Henrik, 2023. "Steering of land use in the context of sustainable development: A systematic review of economic instruments," Land Use Policy, Elsevier, vol. 129(C).
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    11. Meyer, Markus A. & Früh-Müller, Andrea, 2020. "Patterns and drivers of recent agricultural land-use change in Southern Germany," Land Use Policy, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Tax revenues; Municipal taxes; Land consumption; Instrumental variable regression;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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