development charges that reflect the true cost of providing services can buttress planning tools by guiding development away from highcost areas to more efficient locations tomalty and skaburskis pricing policies can be an effective planning tool because they directly engage developers they make them accept the full project costs they recognise and publicise the need to correct for the external costs of development by increasing the cost of land and they raise funds for infrastructure development and compensation programmes skaburskis for example the extension of the metroline in copenhagen was financed through fees from the development of the restad area of copenhagen oecd in order to have the required effect the charges have to be differentiated by location to reflect the different infrastructure costs