Value Capture - Circular Funding
In Short
Investment in land increases its value. Who is capturing that value depends on economic system, tax system, land ownership, land use. Investment in land could be in primary production, extraction or infrastructure.
Investment in infrastructure in Australia is commonly done by governments. Improved land values are captured by land owners (often government) with Rates and Taxes as the ways a portion of increased land value is retrieved from private land owners by government.
In recent times, through privatization of government agencies, path is open for Private Public Partnerships (PPP) or fully private Investment. Investors in infrastructure are usually also land owners - developers - and such they capture the greatest portion of increased land value.
However, there are examples of communities being able to capture increased land value.
Municipal Utility Districts (MUD)
Example from Texas, USA
Eco Villages
Private/Community owned license for supply of services and network operations.
Community Land Trusts
Example from UK
