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The User-pays System in the Provision of Urban Infrastructure: Effectiveness and Equity Criteria

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  • Mohammad Mehdi Azizi

    (Department of Urban Planning, Faculty of Fine Arts, University of Tehran, Tehran, Iran, mmazizi@chamran.ut.ac.ir)

Abstract

A variety of means are currently used throughout the world to finance urban infrastructure in new areas and many countries have attempted to apply alternative and innovative methods to address this issue. Since 1985, Iran has employed a direct user-pays system to finance urban infrastructure in new areas. Questions surrounding effectiveness and equity in the user-pays system result in some conflicting issues. This paper examines the implications of the user-pays system in terms of effectiveness and equity considerations, using the experience of Iran. The primary foci are: first, to expand the discussion on financial aspects of infrastructure provision; and, secondly, to understand and explain the implications of the user-pays system for infrastructure provision, based on an empirical analysis.

Suggested Citation

  • Mohammad Mehdi Azizi, 2000. "The User-pays System in the Provision of Urban Infrastructure: Effectiveness and Equity Criteria," Urban Studies, Urban Studies Journal Limited, vol. 37(8), pages 1345-1357, July.
    • Handle: RePEc:sae:urbstu:v:37:y:2000:i:8:p:1345-1357
    DOI: 10.1080/00420980020080151
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    References listed on IDEAS

    as
    1. R.M. Kirwan, 1989. "Finance for Urban Public Infrastructure," Urban Studies, Urban Studies Journal Limited, vol. 26(3), pages 285-300, June.
    2. Brueckner, Jan K., 1997. "Infrastructure financing and urban development:: The economics of impact fees," Journal of Public Economics, Elsevier, vol. 66(3), pages 383-407, December.
    3. Mohammad Mehdi Azizi, 1998. "Evaluation of urban land supply policy in Iran," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 22(1), pages 94-105, March.
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