Mishra, Alok Kumar  <br/><br/>
Henry George and Mohring–Harwitz Theorems: Lessons for Financing Smart Cities in Developing Countries 

 -  Sage,  2019. 
 - Vol 10, Issue 1, 2019 (13-30 p.)  
<br/><br/> Developing countries are embarking on ‘smart city’ programmes to rejuvenate their cities as engines<br/>of economic growth, applying smart solutions and managerial innovations. However, they ignore the<br/>powerful externalities of cities and are far from adopting ‘smart’ ways of financing urban infrastructure<br/>and services based on known theories and international practices. This article combines the Henry<br/>George Theorem (HGT) from Urban Economics and Mohring–Harwitz Theorem (MHT) from<br/>Transport Economics to suggest a robust strategy of financing infrastructure in cities. While the HGT<br/>emphasizes the taxation of urban land value, the MHT advocates the pricing of congestion externalities.<br/>The article suggests that if ‘beneficiaries pay’ and ‘congesters pay’ principles are combined, cities in<br/>developing countries like India can generate adequate revenues to service long-tenor debt incurred<br/>for core infrastructure facilities. It presents a toolbox of instruments to finance urban infrastructure 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Henry George Theorem, <br/>Mohring–Harwitz Theorem,<br/> land value tax,<br/> congestion pricing,<br/> land-based instruments<br/> beneficiaries pay, <br/>congesters pay