Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Henry George and Mohring–Harwitz Theorems: Lessons for Financing Smart Cities in Developing Countries*

Henry George and Mohring–Harwitz Theorems: Lessons for Financing Smart Cities in Developing... Developing countries are embarking on ‘smart city’ programmes to rejuvenate their cities as engines of economic growth, applying smart solutions and managerial innovations. However, they ignore the powerful externalities of cities and are far from adopting ‘smart’ ways of financing urban infrastructure and services based on known theories and international practices. This article combines the Henry George Theorem (HGT) from Urban Economics and Mohring–Harwitz Theorem (MHT) from Transport Economics to suggest a robust strategy of financing infrastructure in cities. While the HGT emphasizes the taxation of urban land value, the MHT advocates the pricing of congestion externalities. The article suggests that if ‘beneficiaries pay’ and ‘congesters pay’ principles are combined, cities in developing countries like India can generate adequate revenues to service long-tenor debt incurred for core infrastructure facilities. It presents a toolbox of instruments to finance urban infrastructure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Environment and Urbanization ASIA SAGE

Henry George and Mohring–Harwitz Theorems: Lessons for Financing Smart Cities in Developing Countries*

Mishra, Alok Kumar
Environment and Urbanization ASIA , Volume 10 (1): 18 – Mar 1, 2019
Download PDF
18 pages

Loading next page...
 
/lp/sage/henry-george-and-mohring-harwitz-theorems-lessons-for-financing-smart-xcHqsXWHvb

References (8)

Publisher
SAGE
Copyright
© 2019 National Institute of Urban Affairs (NIUA)
ISSN
0975-4253
eISSN
0976-3546
DOI
10.1177/0975425318821797
Publisher site
See Article on Publisher Site

Abstract

Developing countries are embarking on ‘smart city’ programmes to rejuvenate their cities as engines of economic growth, applying smart solutions and managerial innovations. However, they ignore the powerful externalities of cities and are far from adopting ‘smart’ ways of financing urban infrastructure and services based on known theories and international practices. This article combines the Henry George Theorem (HGT) from Urban Economics and Mohring–Harwitz Theorem (MHT) from Transport Economics to suggest a robust strategy of financing infrastructure in cities. While the HGT emphasizes the taxation of urban land value, the MHT advocates the pricing of congestion externalities. The article suggests that if ‘beneficiaries pay’ and ‘congesters pay’ principles are combined, cities in developing countries like India can generate adequate revenues to service long-tenor debt incurred for core infrastructure facilities. It presents a toolbox of instruments to finance urban infrastructure.

Journal

Environment and Urbanization ASIA – SAGE

Published: Mar 1, 2019

There are no references for this article.