An evaluation of development charges and their alternatives in Israel and in Ontario

grantor: University of TorontoDevelopment charges are imposed by local planning authorities on developers to pay for infrastructure necessitated by new development. This thesis evaluates development charges against efficiency and equity criteria, and concludes that despite their shortcomings, they are superior to their alternatives. It also concludes that development charges should approximate marginal costs, and discusses possible techniques to achieve this goal. The thesis proceeds to evaluate the legal status of development charges in Israel and Ontario. In Ontario, new by-laws under the 'Development Charges Act' of 1997 are being developed, but municipalities may impose uniform charges within their area, without regard for the effect of location, type and density of development on the actual costs. These are likely to result in inefficiencies and perverse allocation of costs. In Israel, existing tools for raising revenue for infrastructure are generally inadequate and less equitable than development charges, and the thesis recommends that they be authorized instead.L.L.M