A group of Nobel Laureate economists wrote that the social collection of land rent serves three main purposes.

They write "it guarantees that no one dispossesses fellow citizens by obtaining a disproportionate share of what nature provides for humanity"; second, “it provides revenue with which governments can pay for socially valuable activities without discouraging capital formation or work effort”; and third, “the resulting revenue permits utility and other services that have marked economies of scale or density to be priced at levels conducive to their efficient use”.