Abstract:
Land prices, as reflected in house prices relative to incomes, are near all-time records, pricing younger citizens out of home-ownership and affordable rents. This column argues that a green land value tax – a charge on the land plus a charge on the house minus a discount related to efficiency of the building’s energy usage – would help resolve conflicts around meeting climate goals, equity and housing affordability, reduce intergenerational injustice and benefit sustainable growth. The evolution from existing property tax systems would be aided by a simple new tax deferral mechanism, removing much of the sting of property tax reform.
Citation:
Muellbauer, J. (2024), 'Why we need a green land value tax and how to design it', VoxEU, https://cepr.org/voxeu/columns/why-we-need-green-land-value-tax-and-how-design-it