Local governments can double their tax income from roads, even if the central government doesn't break even

The World Bank measured how new roads affect local tax collection in Rwanda. It turns out, local governments collect twice as much tax revenue within five years of a road upgrade.

Governments often struggle to justify infrastructure spending because the benefits are hard to measure directly in cash. This paper gives local governments a clear, measurable financial return on investment. It means they can fund more projects, knowing they will see a direct boost to their budgets.