Pedestrian Observations

Against Land Value Capture

The article argues that land‑value capture (LVC) is a flawed way to fund transit projects, citing its opacity and tendency to favor high‑value real‑estate developments. It points to New York’s tax‑increment financing for the 7 line and Hong Kong’s MTR as examples where LVC led to cost overruns and misallocation. The author contends that broad‑based taxes provide transparent, accountable financing and should be the default funding source. Ultimately, the piece calls for rejecting LVC in favor of general‑budget or dedicated tax mechanisms.