Effects of Impact Fees on Urban Form and Congestion in Florida

Abstract

This study analyzes the effects of impact fees on urban form and congestion through econometric analysis. The results show that there is some evidence that impact fees might reduce congestion by creating disincentives to residential development and job creation. However, direct evidence of a negative effect of impact fees in development and job growth is not found. There is no evidence that the difference in impact fees between central cities and outer areas promotes a more compact urban form. Likewise, there is no evidence that more road impact fees decrease congestion through more investment in infrastructure. This finding might be because impact fees usually finance local roads but congestion is concentrated on freeways and arterials or because there is a spatial, temporal, or financial mismatch between the collection and investment of impact fees. There is a clear, significant, and substantial positive relationship between density and congestion; this relationship indicates a weak increase in transit use in denser environments or a potential increase in automotive travel through higher trip frequency. However, other urban form variables related to the distribution of that density have a negative effect on congestion, indicating that certain urban configurations could decrease congestion. Finally, changes in congestion are negatively correlated with the congestion levels at the beginning of the period; this finding suggests that congestion is increasing faster in those areas that used to be less congested.