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Lessons from private financing of transport infrastructure: Dutch infrastructure in the 19th century and European projects in the 20th century

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  • Rienstra, S.A.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Nijkamp, P.

Abstract

In the past decade serious doubts have been expressed on the efficiency of a strong public financial involvement in infrastructure. This provokes the question whether financing of infrastructure should be a task of the government. For this purpose, the paper first presents a concise theoretical overview under which circumstances there is a case for public intervention. Interestingly, the financing and operation of transport infrastructure has not always been the task of the public sector. In the 19th century, the railway infrastructure in Europe was financed and operated by the private sector. Later, the government took over more and more responsibilities. This paper analyses then for the Netherlands the reasons for the government to take over the financing of infrastructure, in order to draw conclusions for the present and the future. Also in the 20th century many European projects have been privately financed. In the third part of the paper an overview is presented of several projects (e.g., Channel Tunnel, Mont Blanc Tunnel, Dartford Bridge, Dutch tunnels, Storebelt, etc.) as well as an analysis of the circumstances under which these are economically

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0013.

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Date of creation: 1996
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Handle: RePEc:dgr:vuarem:1996-13

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Web page: http://www.feweb.vu.nl

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  1. Nijkamp, Peter & Rienstra, Sytze A, 1995. "Private Sector Involvement in Financing and Operating Transport Infrastructure," The Annals of Regional Science, Springer, vol. 29(2), pages 221-35, May.
  2. G Marcou, 1993. "Public and private sectors in the delivery of public infrastructure: the case of the Channel Tunnel from an international perspective," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 11(1), pages 1-18, February.
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Cited by:
  1. Ubbels, Barry & Verhoef, Erik T., 2008. "Auctioning concessions for private roads," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 155-172, January.
  2. Ashraf Bany Mohammed & Jorn Altmann, 2010. "A Funding and Governing Model for Achieving Sustainable Growth of Computing e-Infrastructures," TEMEP Discussion Papers 201062, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2010.

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