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Privatization and regulation of toll motorways in europe

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Author Info

  • Daniel Albalate

    ()
    (Faculty of Economics, University of Barcelona)

  • Germa Bel

    ()
    (Faculty of Economics, University of Barcelona)

  • Xavier Fageda

    ()
    (Faculty of Economics, University of Barcelona)

Abstract

The private sector plays an increasing and relevant role in highway funding and management. For that reason, the regulation designed and enforced by public authorities becomes even more important for the social welfare results generated by this process. In this study, we analyze the current trends in highway funding and management paying special attention on the recent process of privatization and its motivations. Since public ownership and regulation are substitutes for government intervention, we check the hypothesis that highways privatization induces more strict regulation. Indeed, we observe that as the private sector increases its size, toll regulation becomes more detailed.

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Bibliographic Info

Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 200704.

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Length: 23 pages
Date of creation: Mar 2007
Date of revision: Mar 2007
Handle: RePEc:ira:wpaper:200704

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Postal: Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona
Web page: http://www.ub.edu/irea/
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Keywords: transport infrastructures; roads; privatization; regulation and tolls;

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References

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  1. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
  2. Fayard, Alain, 2005. "Analysis of Highway Concession in Europe," Research in Transportation Economics, Elsevier, vol. 15(1), pages 15-28, January.
  3. Ragazzi, Giorgio, 2005. "Tolls and Project Financing: A Critical View," Research in Transportation Economics, Elsevier, vol. 15(1), pages 41-53, January.
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