Regulating concessions of toll motorways: An empirical study on fixed vs. variable term contracts
Daniel Albalate () and
Germà Bel ()
Transportation Research Part A: Policy and Practice, 2009, vol. 43, issue 2, 219-229
Recent theoretical developments on concession contracts for long term infrastructure projects under uncertain demand show the benefits of allowing for flexible term contracts rather than fixing a rigid term. This study presents a simulation to compare both alternatives by using real data from the oldest Spanish toll motorways. For this purpose, we analyze how well the flexible term would have performed instead of the fixed length actually established. Our results show a huge reduction of the term of concession that would have dramatically decreased the firm's benefits and the user's overpayment due to the internalization of an unexpected traffic increase.
Keywords: H54; L33; L43; L92; Toll; motorways; Privatization; Concessions; Regulation (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Regulating Concessions of Toll Motorways, An Empirical Study on Fixed vs. Variable Term Contracts (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:43:y:2009:i:2:p:219-229
Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01
Access Statistics for this article
Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose
More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().