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Toward the betterment of risk allocation: Investigating risk perceptions of Australian stakeholder groups to public-private-partnership tollroad projects

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  • Chung, Demi
  • Hensher, David A.
  • Rose, John M.

Abstract

This paper presents a qualitative assessment of the risk perceptions held by key Australian stakeholder groups in the context of tollroads operated under the public-private-partnership model. The findings confirm that experience accumulated in recent years has contributed toward the betterment of risk-sharing optimisation amongst the contracting parties. The knowledge acquired through in-depth interviews supports the common view that equitable risk sharing is the vital ingredient of value for money. The proposition that the private sector is better equipped to manage commercial risks involving economic decision making whilst risks that have embedded unquantifiable social and public values and those in the domain of public governance are best left with government alone, appears to be replete with refutable implications. Public perception is a malleable concept and should be managed by both sectors.

Suggested Citation

  • Chung, Demi & Hensher, David A. & Rose, John M., 2010. "Toward the betterment of risk allocation: Investigating risk perceptions of Australian stakeholder groups to public-private-partnership tollroad projects," Research in Transportation Economics, Elsevier, vol. 30(1), pages 43-58.
    • Handle: RePEc:eee:retrec:v:30:y:2010:i:1:p:43-58
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    3. Alaa M. S. Azazz & Ibrahim A. Elshaer & Marwa Ghanem, 2021. "Developing a Measurement Scale of Opposition in Tourism Public-Private Partnerships Projects," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    4. Demi Chung & David A. Hensher, 2015. "Modelling Risk Perceptions of Stakeholders in Public–Private Partnership Toll Road Contracts," Abacus, Accounting Foundation, University of Sydney, vol. 51(3), pages 437-483, September.
    5. Hongqiang Wang & Qiaoyan Lin & Yingjie Zhang, 2022. "Risk Cost Measurement of Value for Money Evaluation Based on Case-Based Reasoning and Ontology: A Case Study of the Urban Rail Transit Public-Private Partnership Projects in China," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    6. Carlos Contreras & Julio Angulo, 2017. "Valuing Governmental Support in Road PPPs," Hacienda Pública Española / Review of Public Economics, IEF, vol. 223(4), pages 37-66, December.
    7. Roumboutsos, Athena & Pantelias, Aristeidis, 2021. "Addressing infrastructure investor risk aversion: Can project delivery resilience ratings help?," Utilities Policy, Elsevier, vol. 71(C).
    8. Dejan Makovšek & Marian Moszoro, 2018. "Risk pricing inefficiency in public–private partnerships," Transport Reviews, Taylor & Francis Journals, vol. 38(3), pages 298-321, May.
    9. Demi Chung & David Hensher, 2015. "Risk Management in Public–Private Partnerships," Australian Accounting Review, CPA Australia, vol. 25(1), pages 13-27, March.
    10. Liu, Zhixue & Ding, Ronggui & Wang, Lei & Song, Rui & Song, Xinyi, 2023. "Cooperation in an uncertain environment: The impact of stakeholders' concerted action on collaborative innovation projects risk management," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    11. Nizkorodov, Evgenia, 2021. "Evaluating risk allocation and project impacts of sustainability-oriented water public–private partnerships in Southern California: A comparative case analysis," World Development, Elsevier, vol. 140(C).
    12. Rouhani, Omid M. & Niemeier, Debbie & Knittel, Christopher R. & Madani, Kaveh, 2013. "Integrated modeling framework for leasing urban roads: A case study of Fresno, California," Transportation Research Part B: Methodological, Elsevier, vol. 48(C), pages 17-30.
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    14. Gabriel Castelblanco & Jose Guevara & Harrison Mesa & Diego Flores, 2020. "Risk Allocation in Unsolicited and Solicited Road Public-Private Partnerships: Sustainability and Management Implications," Sustainability, MDPI, vol. 12(11), pages 1-28, June.
    15. Chung, Demi & Hensher, David A., 2018. "Public private partnerships in the provision of tolled roads: Shared value creation, trust and control," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 341-359.

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