The regulation of public-private partnerships

Eduardo Engel, Ronald Fischer and Alexander Galetovic

Chapter 16 in Handbook on Transport Pricing and Financing, 2023, pp 311-329 from Edward Elgar Publishing

Abstract: We study the regulation of Public-Private Partnerships (PPPs), focusing on highways. We describe the specific characteristics of PPP contracts, their strengths and weaknesses, and their efficient regulation. One of the main problems of PPPs is that contracts are often renegotiated, which can negate the benefits of selecting the firm via competitive tender, increasing costs to the public and the possibility of corruption. This chapter analyzes approaches for dealing with these problems. We also discuss how different sources of risk should be allocated and show that it is efficient to assign demand risk to the public. The efficient contracts in this case are availability contracts when there are no user fees, and a present value of revenue contracts when tolls are charged. The conclusion is that the lessons from experience with PPPs over the last three decades show how this organizational form can be regulated to provide an attractive option for providing transport infrastructure such as highways and airports.

Keywords: Economics and Finance; Environment; Geography; Politics and Public Policy Urban and Regional Studies (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800375550/9781800375550.00024.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20184_16

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().