재산세 경감을 통한 혼잡통행료의 재순환과 정책시사

The existing literature mostly discusses recycling Pigouvian taxes through labor income tax. In this paper, we recycle congestion tolls through property taxes. Local governments play the central role in the delivery of transport services in major metropolitan areas around the world, and a sizable amount of local governments' budget is spent for local transport projects. For these reasons, recycling the toll revenues through local governments' fiscal system is not only fiscally pertinent but also politically meaningful. However, the lowered property taxes may work as a factor instigating geographical expansion of a city, and the welfare is lowered by that much.