ABSTRACT
In the real world, the range of external effects with which land-use planners may wish to deal is extremely wide. So also is the range of policies which are employed. Some of the most important of these lie outside the range of what are traditionally thought of as land-use planning instruments. This chapter considers how the various types of control affect the workings of the urban economy, taking first taxes, subsidies and compensation payments, and going on to consider the impact of regulations. The planning authority itself has a direct perception of the benefits but not of the costs to other elements of the urban economy. The chapter explores the ways in which authorities can modify market behaviour to achieve certain policy objectives. Markets are made up of individuals and firms making their separate decisions on the allocation of resources.
