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[email protected] 250-508-5150 Transportation Land Valuation Evaluating Policies and Practices that Affect the Amount of Land Devoted to Transportation Facilities 24 March 2020 Todd Litman Victoria Transport Policy Institute A relatively large portion of urban land is devoted to roads and parking facilities. Abstract This paper explores the relationships between transportation, land use and taxation. It investigates how current land tax and regulatory practices affect the amount of land devoted to roads and parking facilities, and how this affects transport patterns. It discusses ways to measure the amount of land devoted to transport facilities, examine how this varies under different circumstances, estimate the value of this resource, evaluate how tax policies and regulations policies treat this land, and analyze whether current practices are optimal in terms of various economic and social objectives. Todd Alexander Litman © 1995-2020 You are welcome and encouraged to copy, distribute, share and excerpt this document and its ideas, provided the author is given attribution. Please send your corrections, comments and suggestions for improvement. Transportation Land Valuation Victoria Transport Policy Institute Introduction This report summarizes research exploring the relationships between transportation, land use and taxation. It investigates whether current transportation and land use practices result in an economically optimal amount of land being devoted to transportation facilities, particularly roads and parking. Roads are essential for most forms of mobility, and parking is essential for automobility (travel by automobile). However, just because these facilities provide benefits does not mean that current policies are optimal. Just as doctors must be careful to avoid prescribing too much medicine, transport policies must prescribe just the right amount of road and parking capacity in each situation.