A Case Study on the Adoption of Traffic Impact Fee in the Philippines

Abstract

Socio-economic development generates new travel demand that strains the capacity of existing road systems and produces negative externalities posing resource and technical challenges to local governments in the Philippines. This research explored the viability of introducing Traffic Impact Fee (TIF) at local levels as a policy response. The TIF requires new developments to pay a proportionate cost of improving road capacity. An improvement-driven TIF model, using a limited area approach, was applied on a residential development project in Cabanatuan City to understand the opportunities and constraints arising from TIF implementation. The research concludes that there is potential for TIF adoption.