Socioeconomic considerations of road impact fees

Unsophisticated applications of road development impact fees have adverse socioeconomic impacts. This occurs when road impact fees are not calibrated to account for variation in household commuting trip lengths by household income proxied by house size in square meters, or when such fees do not account for the variation in work trip generation rates by house location with respect to transit station distance. The purpose of this study is to indicate in what ways unsophisticated fees have adverse socioeconomic effects and pose reasonably straightforward ways in which to correct for those effects. Failure to make these adjustments could lead to inequitable and inefficient road impact fee programs that may result in more fiscal harm than good.