Green Tollways: Strategizing Carbon-Emissions-Based Government-Owned Public Toll Road Operations in China

Bin Shang (), Hui Lu, Yuhua Zhu, Hanchuan Pan and Juan Wang ()
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Bin Shang: Business School, Shanghai Jianqiao University, Shanghai 201306, China
Hui Lu: School of Management, Fudan University, Shanghai 200433, China
Yuhua Zhu: School of Transport and Communications, Shanghai Maritime University, Shanghai 201306, China
Hanchuan Pan: School of Urban Rail Transportation, Shanghai University of Engineering Science, Shanghai 201620, China
Juan Wang: Business School, Shanghai Jianqiao University, Shanghai 201306, China

Sustainability, 2024, vol. 16, issue 6, 1-22

Abstract: When build–operate–transfer (BOT) roads are transferred back to the government upon the expiry of their contract, they are typically considered to be public roads and are no longer subject to tolls. However, in China, BOT roads, after being transferred to the government, remain tolled by the government in order to maintain efficiency. Therefore, such roads are termed public toll roads (PTRs). During the operational phase of PTRs, ongoing operating costs become a significant financial burden compared to the initial investment made for their construction. Against the backdrop of global carbon emission efforts, this paper studies the operational strategy of PTRs in terms of car emission costs, which constitute a portion of PTRs’ operation costs. This paper explores the operational strategy of PTRs, including whether the government should operate the road independently or outsource their operation to a competent private firm. Our analysis concludes that the operator should manage PTRs for the entire duration of their operation by maintaining self-financing while also accounting for operation costs. In this study, governmental regulations for the cost of carbon emissions are also studied.

Keywords: build–operate–transfer; public toll road; operation cost; carbon emission cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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