Costs of providing local public services and compact population in Spanish urbanised areas

Abstract

This paper addresses the impact of land use patterns associated with compact population on the costs of provision and maintenance of urban public services for local entities, controlling for other factors. The aim is to develop an econometric analysis using a panel data set of municipalities of the Spanish Mediterranean area and Madrid in the period 2006–2014. The estimations derived from the study confirm one main hypothesis and indicate that compact population impacts positively on the decrease of municipal costs of urban public services. This study suggests that municipal planning instruments of local entities could contribute to efficiently manage their budgets, as well as orients public policy in terms of its local land use decision-making.