I'm not sure extracting even more money is going to solve the problem if the problem is alraedy one of high costs. Le Chatelier principle?
If it is discouraged - with taxation, that land will be yielded to more productive use.
Nobody creates land but somebody gets to "tax" it. Either we can let that revenue stream fill up government coffers or it can go into private pockets. It's our decision.
Well put. If I suggested privatising air and that you needed to pay the owner to breathe it, that would be seen as ridiculous, and rightly so. Meanwhile, land is an equally natural resource and equally essential to human life, but private land is just accepted as "the way it is".
People in fact do pay for 'special' air in the form of air purifiers, air conditioning, heating, etc.
Land is both scarce and unsubstitutable.
IMO land ownership is a big negative externality, as others can't utilise that land and land is a finite resource. As with all negative externalities, they should be taxed heavily.
If you build a 5 storey house on it you pay the same amount as the guy next door who has an asphalt car park.