Financing Land Acquisition for Infrastructure Projects

16 Pages Posted: 16 Jun 2020 Last revised: 14 Oct 2021

See all articles by Bhagwan Chowdhry

Bhagwan Chowdhry

UCLA Anderson; Indian School of Business

Date Written: May 22, 2020

Abstract

Land acquisition for infrastructure projects that require large amount of
funding can be financed by an equity-like protocol. The auction protocol
does not require a knowledge of the reservation value of the land acquired
nor does it require a determination of post-development value of the land in
the surrounding area. Competition among private players transfers the value
of pecuniary externalities, manifested in land price appreciation, to the government which it can use to partially finance the project that may also have
non-pecuniary positive externalities valued by society.

Keywords: Land, Financiang, Infrastructure, Equity, Externalities, Government, Auction

JEL Classification: H13, P35, R11, R30

Suggested Citation

Chowdhry, Bhagwan, Financing Land Acquisition for Infrastructure Projects (May 22, 2020). Indian School of Business, Available at SSRN: https://ssrn.com/abstract=3607831 or http://dx.doi.org/10.2139/ssrn.3607831

Bhagwan Chowdhry (Contact Author)

UCLA Anderson ( email )

Los Angeles, CA 90095-1481
United States
310-825-5883 (Phone)
310-206-5455 (Fax)

HOME PAGE: http://bit.ly/bhagwanUCLA

Indian School of Business ( email )

Hyderabad, Gachibowli 500 032
India

HOME PAGE: http://bit.ly/bhagwanUCLA

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