Land Use Planning as a Response to Market Failure

  • Douglass B. LeeJr.


Public sector objectives in land use policy planning can be evaluated by comparing them with the various types of market failure. In general public policy corrects some instances of market failure, fails to correct others, and creates yet others. By using a market failure perspective government could greatly reduce negative externalities in the form of pollution and land use incompatabilities, inefficiencies in the provision of public services along with the attendant incentives for sprawl, as well as the costs inequities of achieving social objectives. These results would come from designing policies to take advantage of and enhance market processes rather than replacing markets with political process.


Public Good Market Failure Negative Externality Public Facility Traffic Noise 
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Copyright information

© Plenum Press, New York 1981

Authors and Affiliations

  • Douglass B. LeeJr.
    • 1
  1. 1.U.S. Department of TransportationTransportation Systems CenterCambridgeUSA

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