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Innovative Financing for City Infrastructure Investment by Increasing the Rate of Return from Spillover Tax Revenues

Author

Listed:
  • Yoshino, Naoyuki

    (Asian Development Bank Institute)

  • Hendriyetty, Nella

    (Asian Development Bank Institute)

  • Lakhia, Saloni

    (Asian Development Bank Institute)

  • Alwarritzi, Widya

    (Asian Development Bank Institute)

Abstract

The growing trend of urban city development requires various infrastructure investments, including water supply, electricity, sanitation, transportation, and other supporting facilities. In facing this challenge, many Asian countries experience significant constraints, particularly on the issues of land acquisition and insufficient financial supply, which potentially create a time delay in infrastructure investment and huge budget deficits. If these infrastructure investments were financed by overseas investors, future exchange rate risks would have to be carried by infrastructure companies. We examine further ways to attract more investment in infrastructure by applying spillover tax revenues. We also present case studies of some innovative financing aspects of Japan and other countries.

Suggested Citation

  • Yoshino, Naoyuki & Hendriyetty, Nella & Lakhia, Saloni & Alwarritzi, Widya, 2019. "Innovative Financing for City Infrastructure Investment by Increasing the Rate of Return from Spillover Tax Revenues," ADBI Working Papers 979, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0979
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    References listed on IDEAS

    as
    1. Sachs, Jeffrey D. & Woo, Wing Thye & Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad, 2019. "Why Is Green Finance Important?," ADBI Working Papers 917, Asian Development Bank Institute.
    2. Oecd, 2018. "Financing water: Investing in sustainable growth," OECD Environment Policy Papers 11, OECD Publishing.
    3. Yoshino, Naoyuki & Pontines, Victor, 2015. "The “Highway Effect” on Public Finance: Case of the STAR Highway in the Philippines," ADBI Working Papers 549, Asian Development Bank Institute.
    4. Yoshino, Naoyuki & Abidhadjaev, Umid, 2016. "Impact of Infrastructure Investment on Tax: Estimating Spillover Effects of the Kyushu High-Speed Rail Line in Japan on Regional Tax Revenue," ADBI Working Papers 574, Asian Development Bank Institute.
    5. Yoshino, Naoyuki & Abidhadjaev, Umid, 2017. "An impact evaluation of investment in infrastructure: The case of a railway connection in Uzbekistan," Journal of Asian Economics, Elsevier, vol. 49(C), pages 1-11.
    6. Masaki Nakahigashi & Naoyuki Yoshino, 2016. "Changes in Economic Effect of Infrastructure and Financing Methods," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 12(1), pages 47-68, March.
    7. Hiroaki Suzuki & Jin Murakami & Yu-Hung Hong & Beth Tamayose, 2015. "Financing Transit-Oriented Development with Land Values : Adapting Land Value Capture in Developing Countries," World Bank Publications - Books, The World Bank Group, number 21286, December.
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    More about this item

    Keywords

    infrastructure financing; spill-over effects; tax revenue; land acquisition; smart city; connectivity;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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