Most of the small scale housing developments promoted by private firms have a high tendency to deteriorate the transportation environment around their developing sites. This pattern of development is a well-known form of a free rider problem. Especial...
Most of the small scale housing developments promoted by private firms have a high tendency to deteriorate the transportation environment around their developing sites. This pattern of development is a well-known form of a free rider problem. Especially, small scale apartment constructions which are under 300-500 units are popular because they can avoid the responsibility of providing social and urban infrastructure for the residents.
In order to rectify this kind of free riding development trend, the Ministry of Construction and Transportation had revised ‘The Special Act for Metropolitan Transportation Management in a Metropolitan Region’in January of 2001, and started to impose impact fees under the purpose of sharing the cost to build transportation infrastructure.
This paper reviews the revised regulations and contents of this act, and suggests a rational model to impose impact fees to share the transportation infrastructure cost in the developing regions. This paper provides suggestions and ideas in three categories: improvement of the transportation investment funds, consideration of regional characteristics, and appropriate ways of using the collected metropolitan transportation impact fees.