Infrastructure
A major factor in infrastructure costs is low population density. Here we explore some other factors.
A sharp rise in the per-mile cost of Interstate highway construction in the United States has been observed since the 1960s.
Source: 1.
Reasons for this are suggested as follows.
| Hypothesized Factor | Found to contribute to costs |
|---|---|
| Richer society is more willing to pay for more expensive road segments | Yes |
| Citizen voice | Yes |
| Construction market concentration | Mixed evidence |
| Economies of scale (fewer highways built today increase cost) | Hard to determine |
| Soft budget constraints/end of repeated game | Hard to determine |
| Procurement practices | Hard to determine |
| Labor laws (e.g. Davis Bacon) | Unlikely |
| Multiple layers of government | Minor effect |
| Land costs | Minor effect |
| Labor costs | No |
| Material costs | No |
| State government quality | No |
| Increased use of labor (featherbedding) | No |
Source: 1.
Alongside the cost of buliding, fiscal responsibility also demands that infrastructure is priced appopriately and used efficiently. This means, among other things, congestion pricing, road damage pricing, variable width lanes, investing highway construction in areas where it is most needed, and safety improvements 2.
Construction Costs
The cost of construction has a major bearing on the ability of a city to provide affordable housing, commercial real estate, and infrastructure. Construction costs and productivity have not improved much in decades 3. It is hoped that new technologies, such as construction robots, will improve productivity and lower costs 4, but so far technology has not brought about sustained gains 3.
References
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Brooks, L., Liscow, Z. "How high are infrastructure costs? Analyzing Interstate construction spending". The Brookings Institution. August 2019. ↩ ↩2
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Winston, C. "Efficient Transportation Infrastructure Policy Revisited: A Thirty-Year Update Motivated by Brooks and Liscow". The Brookings Institution. October 2020. ↩
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Potter, B. "Measuring Construction Efficiency". Construction Physics. October 2021. ↩ ↩2
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Thomas, L. "Automated and Robotic Construction: Integrated Automated Construction Sites". Dissertation, Fakultät für Architektur . 2013. ↩