Mind the gap? Taxes, subsidies and the behaviour of brownfield owners

This paper addresses two key research questions. First, how effective are f iscal measures in stimulating brownfield land regeneration? Second, what is the most effective fiscal measure: taxes or subsidies? The paper considers the results of a three-year study of land ownership constraints which was funded by the ESRC and completed in 1998. The research considered 20 develo pment sites in each of four UK cities; Nottingham, Stoke, Aberdeen and Dund ee. In the course of the study, 140 landowners were interviewed in order to ascertain their strategies, interests and actions in the development proce ss. Detailed contextual interviews were also held with 36 organisations wit h valuable experience of planning and development at national or local leve l. The research revealed that brownfield redevelopment is increasingly driv en by the availability of development grants and subsidies. The development prospects of 21 of the 80 research sites hinged on the availability of suc h development grants or subsidies. The paper considers a number of fiscal alternatives and concludes that both grants and fiscal penalties may be appropriate but that urban regeneration policy needs to be sufficiently fine grained to reflect differences in dem and between localities. (C) 2000 Elsevier Science Ltd. All rights reserved.