Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272900 
Year of Publication: 
2023
Series/Report no.: 
ADBI Working Paper No. 1357
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper introduces the concept of spillover tax revenues, which are also known as "indirect" or "secondary revenues," or "externality effects." Based on a case study of high-speed rail in Taipei,China, the spillover tax revenues are identified using the regional tax data through a DID analysis. This paper proposes alternatives for financing infrastructure investments with incorporation of the floating bond and land trust scheme. Further on, a cost-benefit analysis is carried out for the case from both the public and private sector's perspective. Compared to the traditional investment scheme, the proposed financing schemes show a significant improvement of the IRR. The introduction of spillover tax revenues is essential to meet the needs of infrastructure investment in Asia. Increased spillover tax revenues should be shared with the local government and private investors. Combined with the innovative financing schemes, the improved IRR would induce private-sector financing in infrastructure investments.
Subjects: 
spillover tax revenues
floating bond
land trust scheme
private investment
high-speed rail
JEL: 
R40
R52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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