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GGSD 2016 Forum- Parallel Session D: Presentation by Mr. Hansjörg Blöchliger, Senior Economist, Economics Department, OECD

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Local finance: underpinning or undermining sustainable land use

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GGSD 2016 Forum- Parallel Session D: Presentation by Mr. Hansjörg Blöchliger, Senior Economist, Economics Department, OECD

  1. 1. LOCAL FINANCE: UNDERPINNING OR UNDERMINING SUSTAINABLE LAND USE? Hansjörg Blöchliger Head, OECD Network on Fiscal Relations Green Growth and Sustainable Development Forum Paris, 9 and 10 November 2016
  2. 2. Local fiscal policy can be a main driver of land use 2 Land use
  3. 3. How could government structure affect land use? • Fiscal decentralisation: inter-jurisdictional fiscal competition, sub-national governments may turn to “fiscal zoning”, fostering urban sprawl. • Fiscal centralisation: complacency, sub-national governments have few incentives to develop land, thereby limiting growth and affordable housing 33
  4. 4. Local fiscal instruments should be aligned with land use regulation • Local fiscal instruments should be aligned with land use policy, in order to better achieve land use objectives. • Well-designed property taxation – in particular a pure land tax – could underpin sustainable land use and urban re-development. 44

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