Use-Value Land Taxation and Conservation Economics: An Assessment of Tax-Zoning, with Implications for Conservation Easements

Abstract

Conservation economics of use-value land taxation is used to explain the intertemporal incentive effects of progressive versus regressive taxes on the stock and flow component of land into different uses. Such an approach is used to resolve inconsistencies between traditional rent theory, land-use policy, and tax assessment practices in Hawaii. Analytical implications also extend to the problem of valuing conservation easements with respect to urban pressure on prime irrigable lands.