Value capture

Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners. Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners. Public investments, such as building transportation or sewer facilities, can increase adjacent land values, generating an unearned profit for private landowners. The unearned value (increases in land value which otherwise profit private landowners cost-free) may be 'captured' directly by converting them into public revenue (see georgism). Thus, value capture internalizes the positive externalities of public investments, allowing public agencies to tax the direct beneficiaries of their investments.