IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v35y2014icp193-201.html
   My bibliography  Save this article

A comparison of innovative financing and general fiscal investment strategies for second-class highways: Perspectives for building a sustainable financing strategy

Author

Listed:
  • Sun, Zhentian
  • Li, Xuhong
  • Xie, Yuanchang

Abstract

A long-term sustainable financing strategy is critical for highway development and maintenance; however, the effects of two major financing strategies—general fiscal investment, strategy (GFIS) and innovative financing strategy (IFS)—are still unclear to transportation decision, and policymakers. Based on the current financing practices for the second-class highways in China, (equivalent to U.S. or state highways in the United States connecting major cities in a state), this paper developed an integrated method to assess the long-term sustainability of IFS and GFIS in terms of the following widely accepted criteria: adequacy, stability, efficiency, equity, ease of implementation, and political acceptability. These criteria were further classified into quantifiable efficiency criteria (QEC) and non-quantifiable social-institutional criteria (NQSIC) categories. In this research, time-series analysis and telephone-interview methods were used for accessing QEC and NQSIC, respectively. It was found that the IFS in general has more advantage in providing sufficient, stable, and effective funds than the GFIS, and it is considered more favorable and acceptable than GFIS by both provincial and local governments. The results of this research can help decision makers at various levels in China to develop sustainable and effective funding strategies for the second-class highways. In addition, this study provides an international perspective for solving the second-class-highway financing issues and is a useful reference to researchers and policymakers in other countries.

Suggested Citation

  • Sun, Zhentian & Li, Xuhong & Xie, Yuanchang, 2014. "A comparison of innovative financing and general fiscal investment strategies for second-class highways: Perspectives for building a sustainable financing strategy," Transport Policy, Elsevier, vol. 35(C), pages 193-201.
    • Handle: RePEc:eee:trapol:v:35:y:2014:i:c:p:193-201
    DOI: 10.1016/j.tranpol.2014.05.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X14001218
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2014.05.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Starr McMullen, B. & Zhang, Lei & Nakahara, Kyle, 2010. "Distributional impacts of changing from a gasoline tax to a vehicle-mile tax for light vehicles: A case study of Oregon," Transport Policy, Elsevier, vol. 17(6), pages 359-366, November.
    2. Peter R. Winters, 1960. "Forecasting Sales by Exponentially Weighted Moving Averages," Management Science, INFORMS, vol. 6(3), pages 324-342, April.
    3. Hyndman, Rob J. & Koehler, Anne B. & Snyder, Ralph D. & Grose, Simone, 2002. "A state space framework for automatic forecasting using exponential smoothing methods," International Journal of Forecasting, Elsevier, vol. 18(3), pages 439-454.
    4. Taylor, James W., 2003. "Exponential smoothing with a damped multiplicative trend," International Journal of Forecasting, Elsevier, vol. 19(4), pages 715-725.
    5. António Afonso, 2005. "Fiscal Sustainability: The Unpleasant European Case," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 19-44, March.
    6. Wilcox, David W, 1989. "The Sustainability of Government Deficits: Implications of the Present-Value Borrowing Constraint," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(3), pages 291-306, August.
    7. Sebastian Edwards, 2003. "Debt relief and fiscal sustainability," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(1), pages 38-65, March.
    8. García Márquez, Fausto Pedro & Lewis, Richard W. & Tobias, Andrew M. & Roberts, Clive, 2008. "Life cycle costs for railway condition monitoring," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 1175-1187, November.
    9. Hayashi, Yoshitsugu & Yang, Zhongzhen & Osman, Omar, 1998. "The effects of economic restructuring on China's system for financing transport infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(3), pages 183-195, April.
    10. de Jong, Martin & Mu, Rui & Stead, Dominic & Ma, Yongchi & Xi, Bao, 2010. "Introducing public–private partnerships for metropolitan subways in China: what is the evidence?," Journal of Transport Geography, Elsevier, vol. 18(2), pages 301-313.
    11. Wachs, Martin, 2003. "A Dozen Reasons for Raising Gasoline Taxes," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt2000f8t0, Institute of Transportation Studies, UC Berkeley.
    12. Christopher Kennedy & Eric Miller & Amer Shalaby & Heather Maclean & Jesse Coleman, 2005. "The Four Pillars of Sustainable Urban Transportation," Transport Reviews, Taylor & Francis Journals, vol. 25(4), pages 393-414, March.
    13. Sun, Zhentian & Li, Xuhong & Qiao, Wenxin & Haghani, Ali, 2013. "Entropy-based performance evaluation on institutional structures of trunk highway management—Case study in China," Transport Policy, Elsevier, vol. 27(C), pages 85-91.
    14. Feng Xie & David Levinson, 2009. "Modeling the Growth of Transportation Networks: A Comprehensive Review," Networks and Spatial Economics, Springer, vol. 9(3), pages 291-307, September.
    15. Mr. Nigel A Chalk & Mr. Richard Hemming, 2000. "Assessing Fiscal Sustainability in Theory and Practice," IMF Working Papers 2000/081, International Monetary Fund.
    16. Gwilliam, Ken & Shalizi, Zmarak, 1999. "Road Funds, User Charges and Taxes," The World Bank Research Observer, World Bank, vol. 14(2), pages 159-185, 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. Changjie Zhan & Martin De Jong & Hans De Bruijn, 2018. "Funding Sustainable Cities: A Comparative Study of Sino-Singapore Tianjin Eco-City and Shenzhen International Low-Carbon City," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    2. Xinhua Mao & Jiahua Gan & Xilong Zhao, 2019. "Debt Risk Evaluation of Toll Freeways in Mainland China Using the Grey Approach," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    3. Yang, Di & Kastrouni, Eirini & Zhang, Lei, 2016. "Equitable and progressive distance-based user charges design and evaluation of income-based mileage fees in Maryland," Transport Policy, Elsevier, vol. 47(C), pages 169-177.

    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. Evan Lau & Ahmad Zubaidi Baharumshah, 2005. "Assessing The Mean Reversion Behavior Of Fiscal Policy: The Case Of Asian Countries," Macroeconomics 0504002, University Library of Munich, Germany.
    2. Carlos Díaz Alvarado & Alejandro Izquierdo & Ugo Panizza, 2004. "Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador," Research Department Publications 4371, Inter-American Development Bank, Research Department.
    3. Meira, Erick & Cyrino Oliveira, Fernando Luiz & Jeon, Jooyoung, 2021. "Treating and Pruning: New approaches to forecasting model selection and combination using prediction intervals," International Journal of Forecasting, Elsevier, vol. 37(2), pages 547-568.
    4. Ata Ozkaya, 2013. "The Effects of Debt Intolerance and Public Debt Sustainability on Credit Ratings: Evidence From European Economies," Working Papers 011, Bahcesehir University, Betam.
    5. J D Bermúdez & J V Segura & E Vercher, 2006. "Improving demand forecasting accuracy using nonlinear programming software," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(1), pages 94-100, January.
    6. Avgustin Milanov, 2020. "Forecasting Of Some Key Indicators Of The Rfi And Rfp Processes Of The Bulgarian Mobile Telecommunication Operators," Economics & Law, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 2(2), pages 62-70.
    7. Kayandabila, Yamungu & Manyama, Mulesi Kanyere, 2013. "Fiscal Policy and Debt Dynamic: Evidence from Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    8. Ahmad Zubaidi Baharumshah & Evan Lau, 2010. "Mean Reversion Of The Fiscal Conduct In 24 Developing Countries," Manchester School, University of Manchester, vol. 78(4), pages 302-325, July.
    9. Jakob Korbinian Eberl, 2016. "The Collateral Framework of the Eurosystem and Its Fiscal Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 69.
    10. Petropoulos, Fotios & Apiletti, Daniele & Assimakopoulos, Vassilios & Babai, Mohamed Zied & Barrow, Devon K. & Ben Taieb, Souhaib & Bergmeir, Christoph & Bessa, Ricardo J. & Bijak, Jakub & Boylan, Joh, 2022. "Forecasting: theory and practice," International Journal of Forecasting, Elsevier, vol. 38(3), pages 705-871.
      • Fotios Petropoulos & Daniele Apiletti & Vassilios Assimakopoulos & Mohamed Zied Babai & Devon K. Barrow & Souhaib Ben Taieb & Christoph Bergmeir & Ricardo J. Bessa & Jakub Bijak & John E. Boylan & Jet, 2020. "Forecasting: theory and practice," Papers 2012.03854, arXiv.org, revised Jan 2022.
    11. M A Rahman & B R Sarker & L A Escobar, 2011. "Peak demand forecasting for a seasonal product using Bayesian approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(6), pages 1019-1028, June.
    12. De Gooijer, Jan G. & Hyndman, Rob J., 2006. "25 years of time series forecasting," International Journal of Forecasting, Elsevier, vol. 22(3), pages 443-473.
    13. Jan G. De Gooijer & Rob J. Hyndman, 2005. "25 Years of IIF Time Series Forecasting: A Selective Review," Monash Econometrics and Business Statistics Working Papers 12/05, Monash University, Department of Econometrics and Business Statistics.
    14. Carlos Díaz Alvarado & Alejandro Izquierdo & Ugo Panizza, 2004. "Viabilidad fiscal en países de mercados emergentes con un enfoque en Ecuador," Research Department Publications 4372, Inter-American Development Bank, Research Department.
    15. Gardner, Everette Jr., 2006. "Exponential smoothing: The state of the art--Part II," International Journal of Forecasting, Elsevier, vol. 22(4), pages 637-666.
    16. Paul Alagidede & George Tweneboah, 2015. "On the Sustainability and Synchronization of Fiscal Policy in Latin America," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 52(2), pages 213-240, November.
    17. Lila, Maurício Franca & Meira, Erick & Cyrino Oliveira, Fernando Luiz, 2022. "Forecasting unemployment in Brazil: A robust reconciliation approach using hierarchical data," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    18. Evan Lau & Ahmad Zubaidi Baharumshah & Shazali Abu Mansor & Chin-Hong Puah, 2009. "Testing Stationarity of Budgetary Position in Developing Countries," International Econometric Review (IER), Econometric Research Association, vol. 1(2), pages 77-87, April.
    19. Hess, Alexander & Spinler, Stefan & Winkenbach, Matthias, 2021. "Real-time demand forecasting for an urban delivery platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    20. Ferbar Tratar, Liljana & Mojškerc, Blaž & Toman, Aleš, 2016. "Demand forecasting with four-parameter exponential smoothing," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 162-173.

    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:eee:trapol:v:35:y:2014:i:c:p:193-201. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    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.