Financing Transport Infrastructure in Developing Country Cities: Evaluation of and Lessons from Nascent Use of Impact Fees in Santiago de Chile
Abstract
The potential for and limitations to the use of impact fees to finance urban transport infrastructure in developing country cities are assessed, drawing from the specific case of Santiago de Chile. The current state of urban transport infrastructure financing and its inherent complications are first presented. Principles of appropriate impact fee use are then derived from the U.S. experience. These principles are then applied to the recent use of transportation impact fees in Santiago, leading to preliminary recommendations for improvement, including the following: establishing proper overarching legal guidance for their use; taking a uniform approach to their application; clarifying the relationship of impact fees to other user fees and other forms of development exactions; answering the question of who bears the ultimate burden of impact fee costs; and improving the understanding of the effects of transportation impact fees on other public policy goals. From this assessment of the Santiago experience, lessons for other developing country cities are presented.
Get full access to this article
View all access and purchase options for this article.
References
1. Zegras C. Mecanismos Financieros Aplicados al Desarrollo Urbano como Consecuencia de sus Impactos en los Sistemas de Transporte: El Caso de Santiago de Chile. Tranvia: Revista de Transporte, No. 13, Oct. 17, 2001. www.revistatranvia.cl. Accessed Oct. 19, 2001.
2. Cities on the Move: A World Bank Urban Transport Strategy Review. Draft. World Bank, Washington, D.C., Oct. 17, 2001.
3. Small K. Urban Transportation Economics. Harwood Academic Publishers, Chur, Switzerland, 1992.
4. Gillen D. Efficient Use and Provision of Transportation Infrastructure with Imperfect Pricing: Second Best Rules. In The Full Costs and Benefits of Transportation: Contributions to Theory, Method, and Measurement (Greene D. L., Jones D. W., and Delucchi M. A., eds.), Springer, Berlin, 1997.
5. Brueckner J. K. Infrastructure Financing and Urban Development: The Economics of Impact Fees. Journal of Public Economics, Vol. 66, 1997, pp. 383–407.
6. Altshuler A., and Gómez-Ibáñez J. A. Regulation for Revenue: The Political Economy of Land Use Exactions. Brookings Institution, Washington D.C.; and Lincoln Institute of Land Policy, Cambridge, Mass., 1993.
7. Nelson A. C. Development Impact Fees: Introduction. Journal of the American Planning Association, Vol. 54, No. 1, Winter 1988, pp. 3–6.
8. Lillydahl J., Nelson A. C., Ramis T., Rivasplata A., and Schell S. The Need for a Standard State Impact Fee Enabling Act. Journal of the American Planning Association, Vol. 54, No. 1, Winter 1988, pp. 7–17.
9. Smolka M., and Amborski D. Value Capture for Urban Development: An Inter-American Comparison. Working Paper. Lincoln Institute of Land Policy, Cambridge, Mass., 2000.
10. Cervero R., and Susantono B. Rent Capitalization and Transportation Infrastructure Development in Jakarta. Review of Urban and Regional Development Studies, Vol. 11, No. 1, March 1999, pp. 11–23.
11. Smolka M., and Furtado F. Lessons from the Latin American Experience with Value Capture. Land Lines. Newsletter of the Lincoln Institute of Land Policy, Cambridge, Mass., July 2001.
12. Bahl R. W., and Linn J. F. Urban Public Finance in Developing Countries. Oxford University Press, New York, 1992.
13. Auerhahn E. Implementing an Impact Fee System: Ten Years of Experience in Broward County, Florida. Journal of the American Planning Association, Vol. 54, No. 1, Winter 1988, pp. 67–70.
14. Nicholas J. C., and Nelson A. C. Determining the Appropriate Development Impact Fee Using the Rational Nexus Test. Journal of the American Planning Association, Vol. 54, No. 1, Winter 1988, pp. 56–66.
15. Applicability of Vehicle Miles of Travel to Transportation Planning. Transportation Planning Bureau, City of Orlando, Fla., 1998.
16. Manual de Procedimientos y Metodologia de los Estudios de Impacto sobre el Sistema de Transporte Urbano EISTU-Región Metropolitana. Secretaria Regional Ministerial de Transportes y Telecomunicaciones-Región Metropolitana, Santiago, Chile, 2001.
17. Manual No. 4: Finanzas Municipales. Asociación Chilena de Municipalidades, Santiago, Chile, 1995.
18. Youngman J., and Malme J. An International Survey of Taxes on Land and Buildings. Kluwer Law and Taxation Publishers, Deventer, Netherlands, 1994.
19. Democracia Regional y Local. Subsecretaria de Desarrollo Regional y Administrative, Ministerio del Interior, Santiago, Chile, July 2000.
20. Barra P., and Jorratt M. An Analysis of the Chilean Tax System. Division de Estudios, Servicio de Impuestos Internos, Santiago, Chile, Oct. 1998.
21. Zegras C., and Litman T. An Analysis of the Full Costs and Impacts of Transportation in Santiago de Chile. International Institute for Energy Conservation-Latin America, Santiago, Chile, 1997.
22. Zegras C., and Litman T. Cost Estimates of Transport Air Pollution in Santiago, Chile. In Transportation Research Record 1587, TRB, National Research Council, Washington, D.C., 1997, pp. 106–112.
23. Anuario de Cuentas Nacionales de Chile. Banco Central de Chile, Santiago, May 1999.
24. Acuerdo Marco que Establece las Bases y Principios sobre Mitigación de Impacto Vial en la Provincia de Chacabuco, de la Región Metropolitana. Secretaria Regional Ministerial de Obras Públicas-Región Metropolitana, Santiago, Chile, Sept. 7, 2001.
25. Singell L., and Lillydahl J. An Empirical Examination of the Effect of Impact Fees on the Housing Market. Land Economics, Vol. 66, No. 1, Feb. 1990, pp. 82–92.
26. Nicholas J. C., Nelson A. C., and Juergensmeyer J. C. A Practitioner's Guide to Development Impact Fees. Planners Press, American Planning Association, Chicago, Ill., 1991.
Cite article
Cite article
Cite article
OR
Download to reference manager
If you have citation software installed, you can download article citation data to the citation manager of your choice
Information, rights and permissions
Information
Published In
Article first published: January 2003
Issue published: January 2003
Authors
Metrics and citations
Metrics
Journals metrics
This article was published in Transportation Research Record: Journal of the Transportation Research Board.
VIEW ALL JOURNAL METRICSArticle usage*
Total views and downloads: 44
*Article usage tracking started in December 2016
Altmetric
See the impact this article is making through the number of times it’s been read, and the Altmetric Score.
Learn more about the Altmetric Scores
Articles citing this one
Receive email alerts when this article is cited
Web of Science: 0
Crossref: 4
- Transportation policy profiles of Chinese city clusters: A mixed metho...
- Land-based Financing in Metropolitan Cities in India: The Case of Hyde...
- Assessing Public-Sector Transportation Finance and Planning in Urban C...
- How much can public private partnership really do for urban transport ...
Figures and tables
Figures & Media
Tables
View Options
Get access
Access options
If you have access to journal content via a personal subscription, university, library, employer or society, select from the options below:
loading institutional access options
Alternatively, view purchase options below:
Purchase 24 hour online access to view and download content.
Access journal content via a DeepDyve subscription or find out more about this option.
