ASG White Paper: Land Value Capture and Ukraine's Reconstruction

Key takeaways



  • Land value capture should both increase economic productivity and generate enough revenue to significantly contribute to Ukraine’s reconstruction costs, making financing reconstruction considerably easier.



  • Ukraine could use the following tools for land value capture:
    • Ground Leases: Issuing leases for land already owned or newly acquired by the state at rates periodically adjusted to the full market rental value of the land.
    • Covenants: Acquiring land currently in private hands, re-developing the surrounding area, and then selling the land with a covenant attached that obligates all future owners to pay an annual land value charge.
    • Land Value Tax: Imposing a property tax only on the rental value of the land, not counting the value of buildings or other improvements on the land, adjusted annually.


  • Without land value capture, reconstruction investment will likely yield only a temporary increase in productivity and exacerbate the concentration of power among the nation’s elite.


The full analysis can be found in the attachment below: 


ASG White Paper — Land Value Capture and Ukraine's Reconstruction.pdf