PLAN103 Chapter Notes - Chapter 8: Marginal Cost
23 Mar 2016
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Blais chapter 8 network services costs and prices. There are many services provided to development whose costs are very sensitive to patterns and location and are not given attention in costs of sprawl: includes: water and sewer, electricity, gas, phone, cable, internet, mail. Way these services priced, reflecting cost associated with delivery is critical in generation of sprawl. Half of canadians pay flat rate for water despite relationship between price and consumption, volume rate consumers used almost 50% less water than flat rates. Marginal cost of water and sewer is higher than price charged, over double it. Set of cross subsidies established in water rate, given lack of fluctuation based on actual cost of providing the services. Extensive linear infrastructure needed, especially with distribution, strong relationship between delivery costs and urban form and density, per unit capital and operating cost is lower with higher densities.
