Evaluation of Value Capture Mechanisms from Linkage Capture to Special Assessment Districts

Abstract

There has been an increasing interest in the academic literature in how to seize the positive impact of transportation investments on land values and to use such funds as a source for financing transportation projects. Value capture mechanisms such as special assessment districts, tax increment financing, and linkage capture are seen as alternative strategies for funding transportation projects and making beneficiaries of higher land values pay a share of the benefits that they receive from transportation investments. This study assesses existing value capture mechanisms based on three desired criteria of taxation policy: maximization of efficiency, minimization of transaction costs, and minimization of regressivity.