Designed to Fail
How fossil fuel infrastructure undermines municipal finances
Low-density, car-oriented growth typically imposes long-term fiscal burdens on municipal governments while locking in higher energy use and greenhouse gas emissions. This research examines how urban development patterns shape municipal finances and emissions outcomes in the context of growing infrastructure deficits and increasing pressure to meet climate targets.
Recommendations
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Align infrastructure pricing with actual costs: Property taxes, development charges, and user fees should better reflect the true long-term costs of infrastructure so that communities have a clearer understanding of the full costs of infrastructure.
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Require stronger fiscal impact analyses (FIAs): Municipalities should require full life-cycle FIAs for major infrastructure projects, including long-term maintenance and emissions costs, alongside spatial analysis that evaluates the fiscal performance of different development patterns.
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Tie provincial and federal infrastructure funding to long-term sustainability: Senior government infrastructure funding should prioritize projects that demonstrate long-term fiscal viability and support lower-emission development patterns.
Significant infrastructure deficits in municipalities across North America indicate that infrastructure is being expanded at an unsustainable rate. At the same time, governments are faced with the urgent need to reduce greenhouse gas emissions.
This report examines how urban development patterns influence both the fiscal and environmental costs of car-oriented infrastructure. Low-density growth patterns often generate insufficient tax revenue to cover their full life-cycle infrastructure costs, contributing to long-term municipal liabilities, while also reinforcing car dependency and higher emissions. The research explores how fiscal impact analysis, infrastructure planning, and land-use policy can be better integrated to support more financially and environmentally sustainable development outcomes.
Participating experts
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