IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/67662.html
   My bibliography  Save this paper

Revenue Risk Mitigation Options for Toll Roads

Author

Listed:
  • M. Rouhani, Omid

Abstract

The major risk associated with the provision of toll facilities results from uncertain future demand/revenue generated from the facilities. In this paper, I examine various options for mitigating toll revenue risk and provide a set of recommendations as to how revenue risk mitigation should be pursued. In addition to conducting more careful traffic revenue studies and risk analyses, policy makers can provide more flexible tolling schedules, adopt advanced toll collection technology, and limit the non-compete clause included in many toll road deals with private operators.

Suggested Citation

  • M. Rouhani, Omid, 2015. "Revenue Risk Mitigation Options for Toll Roads," MPRA Paper 67662, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67662
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/67662/1/MPRA_paper_67662.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bel Germà & Fageda Xavier & E. Mildred, 2014. "Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services," Public administration issues, Higher School of Economics, issue 3, pages 103-140.
    2. Robert Bain, 2009. "Error and optimism bias in toll road traffic forecasts," Transportation, Springer, vol. 36(5), pages 469-482, September.
    3. R. Richard Geddes, 2011. "The Road to Renewal: Private Investment in U.S. Transportation Infrastructure," Books, American Enterprise Institute, number 29723, September.
    4. Rouhani, Omid M., 2010. "Gas Consumption Information: A Substitute for Congestion Pricing?," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207246, Transportation Research Forum.
    5. Poorzahedy, Hossain & Rouhani, Omid M., 2007. "Hybrid meta-heuristic algorithms for solving network design problem," European Journal of Operational Research, Elsevier, vol. 182(2), pages 578-596, October.
    6. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    7. Rouhani, Omid M. & Niemeier, Debbie, 2014. "Flat versus spatially variable tolling: A case study in Fresno, California," Journal of Transport Geography, Elsevier, vol. 37(C), pages 10-18.
    8. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    9. Rouhani, Omid M. & Oliver Gao, H. & Richard Geddes, R., 2015. "Policy lessons for regulating public–private partnership tolling schemes in urban environments," Transport Policy, Elsevier, vol. 41(C), pages 68-79.
    10. Jean-Etienne de Bettignies & Thomas W. Ross, 2004. "The Economics of Public-Private Partnerships," Canadian Public Policy, University of Toronto Press, vol. 30(2), pages 135-154, June.
    11. Rouhani, Omid M. & Oliver Gao, H., 2014. "An advanced traveler general information system for Fresno, California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 254-267.
    12. Boarnet, Marlon G. & Dimento, Joseph F., 2004. "The Private Sector's Role in Highway Finance: Lessons From SR 91," University of California Transportation Center, Working Papers qt9q69608s, University of California Transportation Center.
    13. 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.
    14. Ali Mirchi & Saeed Hadian & Kaveh Madani & Omid M. Rouhani & Azadeh M. Rouhani, 2012. "World Energy Balance Outlook and OPEC Production Capacity: Implications for Global Oil Security," Energies, MDPI, vol. 5(8), pages 1-26, July.
    15. Rouhani, Omid M. & Knittel, Christopher R. & Niemeier, Debbie, 2014. "Road Supply in Central London: Addition of an Ignored Social Cost," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(1).
    16. Bonsall, Peter & Shires, Jeremy & Maule, John & Matthews, Bryan & Beale, Jo, 2007. "Responses to complex pricing signals: Theory, evidence and implications for road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 672-683, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rouhani, Omid, 2017. "Manage energy/environmental footprints of travel: A proposed solution/methodology," MPRA Paper 83344, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M Rouhani, Omid, 2016. "Social welfare analysis of HOV to HOT conversion," MPRA Paper 75816, University Library of Munich, Germany.
    2. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    3. Rouhani, Omid M. & Geddes, R. Richard & Gao, H. Oliver & Bel, Germà, 2016. "Social welfare analysis of investment public–private partnership approaches for transportation projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 86-103.
    4. Rouhani, Omid, 2021. "Transportation Project Evaluation Methods/Approaches- Version 2," MPRA Paper 105729, University Library of Munich, Germany.
    5. Omid M. Rouhani, 2016. "Next Generations of Road Pricing: Social Welfare Enhancing," Sustainability, MDPI, vol. 8(3), pages 1-15, March.
    6. Rouhani, Omid, 2017. "Manage energy/environmental footprints of travel: A proposed solution/methodology," MPRA Paper 83344, University Library of Munich, Germany.
    7. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    8. Omid, M. Rouhani, 2013. "Queue Dissipation Shockwave Speed for Signalized Intersections," MPRA Paper 53161, University Library of Munich, Germany.
    9. Omid M. Rouhani & H. Oliver Gao, 2016. "Evaluating Various Road Ownership Structures and Potential Competition on an Urban Road Network," Networks and Spatial Economics, Springer, vol. 16(4), pages 1019-1042, December.
    10. Rouhani, Omid M., 2013. "Queue Dissipation Shockwave Speed– A Signalized Intersection Case Study," 54th Annual Transportation Research Forum, Annapolis, Maryland, March 21-23, 2013 206954, Transportation Research Forum.
    11. M. Rouhani, Omid, 2019. "Transportation Project Evaluation Methods/Approaches," MPRA Paper 91451, University Library of Munich, Germany.
    12. Rouhani, M. Rouhani, 2018. "Financing Sustainability and Resiliency of Transportation Infrastructure in an Era of Fiscal Constraint," MPRA Paper 88504, University Library of Munich, Germany.
    13. Rouhani, Omid M. & Oliver Gao, H., 2014. "An advanced traveler general information system for Fresno, California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 254-267.
    14. Rouhani, Omid M. & Oliver Gao, H. & Richard Geddes, R., 2015. "Policy lessons for regulating public–private partnership tolling schemes in urban environments," Transport Policy, Elsevier, vol. 41(C), pages 68-79.
    15. Rouhani, Omid, 2023. "Public Policy: A science and/or a Field?," MPRA Paper 118121, University Library of Munich, Germany.
    16. Omid, M. Rouhani, 2013. "Modified RPS Calculator: Inputs, Updating Procedure, and Outputs," MPRA Paper 53679, University Library of Munich, Germany.
    17. De Vos, Jonas, 2016. "Road pricing in a polycentric urban region: Analysing a pilot project in Belgium," Transport Policy, Elsevier, vol. 52(C), pages 134-142.
    18. Rouhani, Omid M. & Niemeier, Debbie, 2014. "Flat versus spatially variable tolling: A case study in Fresno, California," Journal of Transport Geography, Elsevier, vol. 37(C), pages 10-18.
    19. Geddes, R. Richard & Wagner, Benjamin L., 2013. "Why do U.S. states adopt public–private partnership enabling legislation?," Journal of Urban Economics, Elsevier, vol. 78(C), pages 30-41.
    20. Beheshtian, Arash & Richard Geddes, R. & Rouhani, Omid M. & Kockelman, Kara M. & Ockenfels, Axel & Cramton, Peter & Do, Wooseok, 2020. "Bringing the efficiency of electricity market mechanisms to multimodal mobility across congested transportation systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 58-69.

    More about this item

    Keywords

    Risk mitigation; revenue risk; pricing method; toll collection technology; non-compete clause.;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:67662. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.