Small companies facing the mobility policy in Spain: Is it profitable to remain in the market?

Raquel Fernández-González, Raisa Pérez-Vas and Félix Puime-Guillén

Transport Policy, 2022, vol. 128, issue C, 113-120

Abstract: The parking sector in Spain has experienced a growing trend in recent years. At the same time, the level of market concentration has increased. One of the main reasons behind this phenomenon is due to the mobility policy established both at the national (Spain) and supranational (European Union) levels, which is based on environmental sustainability criteria. Increasingly, the possession of environmental certificates, widespread among large companies but not among small ones, is increasingly decisive to obtain a public parking tender. The objective of this work is to analyze whether small companies, which are a large number in the sector, have possibilities of continuing their activity in the market in the face of an increase in the degree of sustainability in mobility policies. For this purpose, the Real Options methodology will be used, applying an abandonment option for a period of 10 years. The results provide a high NPV value (€598,491.2) and a Real Options value, together with the exit option, of €630,341.9. The exit option contributes a growth of only 5.32% with respect to the NPV. Therefore, the option to stay in the market is an appropriate choice for decision-makers.

Keywords: Parking; Transport policy; Discount cash-flow; Real options; Spain (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/j.tranpol.2022.09.021

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