Development Impact Fees: A Vehicle or Restraint for Land Development?

Although development impact fees have been used by local governments for decades, it is still not well understood how this tool serves its fundamental policy goal of growth management. Previous studies have shown that impact fees can serve as either a vehicle or restraint for land development. By using panel data from Florida counties in the U.S., this study shows that the use of impact fees precipitates local development by increasing the value of developable parcels. Impact fees allow developers to pursue more development activities as they bear the imposed fees.