PLAN103 Chapter 10: Blais Chapter 10 – Driving Sprawl Pricing and Policy Mis

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Blais chapter 10 driving sprawl pricing and policy mis-incentives. Many subsidies to homeownership, energy use, transport take the form of tax breaks. Other subsidy appears in form of grants for infrastructure and artificially lower the cost of running and buying a home and encouraging higher consumption, with collateral impact on development and urban form inadequately considered. Subsidies that encouraged one thing while others encourage the opposite. Government subsidizes cost of producing energy, lowering its cost while also subsidizing energy efficiency. Non-pricing of certain public or quasi-public goods, pricing of these not accurately and apparently tied to the use and are paid for general taxes, not user fees that make costs apparent. Leads to higher demands because it is not priced properly. Prices do not account for variability in costs of provision or operation due to differences in the urban form. Punish those whose costs are lower, force them to subsidize those who costs are higher.

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