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Developer contributions to the financing of infrastructure


SummaryFirst principles assesmentEvidence on performancePolicy contributionComplementary instrumentsReferences

Policy contribution


Contribution to objectives

Objective Scale of contribution Comment
Efficiency 2 Developer contributions might prevent congestion which would otherwise result from development.  This will depend both on the development and on the nature of the infrastructure.
Liveable streets 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Protection of the environment 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Equity and social inclusion 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.

Safety
3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Economic growth 3 There is uncertainty about the relationship between transport infrastructure and economic development. Any economic impact is likely to depend on what infrastructure is funded by the contribution.
Finance 2 Developer contributions provide a source of funding
1 = Weakest possible positive contribution, 5 = strongest possible positive contribution
-1 = Weakest possible negative contribution -5 = strongest possible negative contribution
0 = No contribution

Contribution to alleviation of key problems

Problem Scale of contribution Comment
Congestion 2 Developer contributions might prevent congestion which would otherwise result from development.  This will depend both on the development and on the nature of the infrastructure.
Community impacts 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Environmental damage 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Poor accessibility 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Social and geographical disadvantage
3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Accidents 3 This will depend on what infrastructure is provided. There is some concern that a system of developer contributions can limit focus on social and environmental objectives and favour developments which bring higher contributions.
Economic growth 3 There is uncertainty about the relationship between transport infrastructure and economic development. Any economic impact is likely to depend on what infrastructure is funded by the contribution.
1 = Weakest possible positive contribution, 5 = strongest possible positive contribution
-1 = Weakest possible negative contribution -5 = strongest possible negative contribution
0 = No contribution

Appropriate contexts

Appropriate area-types
Area type Suitability
City centre 4
Dense inner suburb 3
Medium density outer suburb 2
Less dense outer suburb 3
District centre 3
Corridor 3
Small town 3
Tourist town 2
1 = Least suitable area type 5 = Most suitable area type


Adverse side effects

There are some concerns that a shift to use of developer contributions to fund transport infrastructure can lead to emphasis on financial gain (for infrastructure) which can be obtained from planning decisions rather than consideration of other social or environmental objectives (see Campbell et al. 2000).

 

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Text edited at the Institute for Transport Studies, University of Leeds, Leeds LS2 9JT