Impacts of Land Development Charges

This paper analyzes the impacts of development charges on urban land development. The way in which the burden of a development charge is shared between land supplier, developer, and land consumer, as well as its impact on demand and on developer's profit, depends on a complex range of factors, including the elasticities of land supply and demand, the relationships between the development charge, the developer's fixed costs, and the raw land and developed land prices before charges are exacted. The policy implications of these findings are discussed.