 Road investments and the trade-off between private and public fundingMorten Welde, Svein Bråthen, Jens Rekdal and Wei Zhang Research in Transportation Economics, 2020, vol. 82, issue C Abstract: This paper assesses the impacts tolls have on economic profitability. We show that Norway has a long and diversified tradition for financing road construction by means of tolls. 20–30 per cent of the total funds available for road funding consist of toll revenues. Despite this extensive use of tolls, there is a weak tradition for detailed studies of the economic effects from tolls. This implies that the net benefit of the projects may have been overestimated. In order to explore this in more detail, we have studied four tolled road projects. The paper provides an empirical assessment, by means of a transport model, of how to determine optimal funding in order to maximise net present value, given a set of financial and/or political constraints. The main finding of the paper is that tolling can have a significant impact on economic profitability and that these effects should be examined carefully as part of the basis for the investment decision. Keywords: Tolls; Road tolls; Toll financing; Appraisal; Cost benefit analysis; Economic profitability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:retrec:v:82:y:2020:i:c:s0739885920300731 Ordering information: This journal article can be ordered from DOI: 10.1016/j.retrec.2020.100875 Access Statistics for this article Research in Transportation Economics is currently edited by M. Dresner More articles in Research in Transportation Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.