TY - JOUR
T1 - Financing infrastructure over time
AU - Levinson, D. M.
N1 - Copyright:
Copyright 2007 Elsevier B.V., All rights reserved.
PY - 2001/12
Y1 - 2001/12
N2 - This paper investigates the problem of financing infrastructure over time when the number of users also changes. The problem is confronted in many fast-growing communities that need to coordinate the timing of infrastructure and development, yet still achieve economies of scale where they exist. The temporal free-rider problem is defined, whereby the group that finances the construction at a given time is not identical with the group that uses it. The continuous recovery method, which effectively establishes a property rights framework for infrastructure, is described. Continuous recovery enables existing residents to be appropriately compensated by new residents, independent of the number of new residents who ultimately arrive. The system is illustrated and compared with practice in a case that uses a noncontinuous cost recovery system.
AB - This paper investigates the problem of financing infrastructure over time when the number of users also changes. The problem is confronted in many fast-growing communities that need to coordinate the timing of infrastructure and development, yet still achieve economies of scale where they exist. The temporal free-rider problem is defined, whereby the group that finances the construction at a given time is not identical with the group that uses it. The continuous recovery method, which effectively establishes a property rights framework for infrastructure, is described. Continuous recovery enables existing residents to be appropriately compensated by new residents, independent of the number of new residents who ultimately arrive. The system is illustrated and compared with practice in a case that uses a noncontinuous cost recovery system.
UR - http://www.scopus.com/inward/record.url?scp=0035577098&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0035577098&partnerID=8YFLogxK
U2 - 10.1061/(ASCE)0733-9488(2001)127:4(146)
DO - 10.1061/(ASCE)0733-9488(2001)127:4(146)
M3 - Article
AN - SCOPUS:0035577098
VL - 127
SP - 146
EP - 157
JO - Journal of the Urban Planning and Development Division, ASCE
JF - Journal of the Urban Planning and Development Division, ASCE
SN - 0733-9488
IS - 4
ER -