IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v62y2018icp12-20.html
   My bibliography  Save this article

Evaluating highway public-private partnerships: Evidence from U.S. value for money studies

Author

Listed:
  • Kweun, Jeong Yun
  • Wheeler, Porter K.
  • Gifford, Jonathan L.

Abstract

This paper examines the state of practice used in the value for money (VfM) analysis of highway projects in the United States. Based on direct contact with public transportation agencies and the search of project websites, seven VfM studies were selected for a comparative analysis. The paper finds that the choice of public sector comparator (PSC) model varied from one study to another, which is driven by agency experience. The risks transferred from employing the public-private partnership (P3) model are closely related to the choice of repayment schemes. Discount rates used in practice are similar across studies despite wide-ranging debates over appropriate rates in the literature. VfM studies show the advantages of agency municipal bonds are reduced when favorable borrowing rates are available to private partners. The paper lastly examines reasons why agencies chose not to deliver projects as P3s based on VfM studies.

Suggested Citation

  • Kweun, Jeong Yun & Wheeler, Porter K. & Gifford, Jonathan L., 2018. "Evaluating highway public-private partnerships: Evidence from U.S. value for money studies," Transport Policy, Elsevier, vol. 62(C), pages 12-20.
    • Handle: RePEc:eee:trapol:v:62:y:2018:i:c:p:12-20
    DOI: 10.1016/j.tranpol.2017.03.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X17300999
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2017.03.009?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. Oecd, 2001. "Financial Management and Control of Public Agencies," SIGMA Papers 32, OECD Publishing.
    2. Baik, Kyung Hwan & Kim, In-Gyu & Na, Sunghyun, 2001. "Bidding for a group-specific public-good prize," Journal of Public Economics, Elsevier, vol. 82(3), pages 415-429, December.
    3. -, 2001. "Major statistical publications: abstracts," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27482, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Paul A. Grout, 2003. "Public and Private Sector Discount Rates in Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 62-68, March.
    5. David Corner, 2006. "The United Kingdom Private Finance Initiative: The Challenge of Allocating Risk," OECD Journal on Budgeting, OECD Publishing, vol. 5(3), pages 37-55.
    6. Tolhurst, Rachel & Amekudzi, Yaa Peprah & Nyonator, Frank K. & Bertel Squire, S. & Theobald, Sally, 2008. ""He will ask why the child gets sick so often": The gendered dynamics of intra-household bargaining over healthcare for children with fever in the Volta Region of Ghana," Social Science & Medicine, Elsevier, vol. 66(5), pages 1106-1117, March.
    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. Zhao, Jianfeng & Greenwood, David & Thurairajah, Niraj & Liu, Henry J. & Haigh, Richard, 2022. "Value for money in transport infrastructure investment: An enhanced model for better procurement decisions," Transport Policy, Elsevier, vol. 118(C), pages 68-78.
    2. Nannan Wang & Xiaoyan Chen & Guobin Wu, 2019. "Public Private Partnerships, a Value for Money Solution for Clean Coal District Heating Operations," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    3. Zhao, Jianfeng & Liu, Henry J. & Love, Peter E.D. & Greenwood, David J. & Sing, Michael C.P., 2022. "Public-private partnerships: A dynamic discrete choice model for road projects," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    4. Jingfeng Yuan & Wenying Ji & Jiyue Guo & Mirosław J. Skibniewski, 2019. "Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction," Transportation, Springer, vol. 46(6), pages 2309-2345, December.
    5. Spohr, Jonas & Wikström, Kim & Ronikonmäki, Niko-Matti & Lepech, Michael & In, Soh Young, 2024. "Are private investors overcompensated in infrastructure projects?," Transport Policy, Elsevier, vol. 152(C), pages 1-8.

    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. Subhasish M. Chowdhury & Iryna Topolyan, 2013. "The Attack-and-Defence Group Contests," University of East Anglia Applied and Financial Economics Working Paper Series 049, School of Economics, University of East Anglia, Norwich, UK..
    2. Fandel, Günter & Giese, Anke & Mohn, Brigitte, 2012. "Measuring synergy effects of a Public Social Private Partnership (PSPP) project," International Journal of Production Economics, Elsevier, vol. 140(2), pages 815-824.
    3. Konrad, Kai A., 2004. "Bidding in hierarchies," European Economic Review, Elsevier, vol. 48(6), pages 1301-1308, December.
    4. Bettina Klose & Dan Kovenock, 2015. "Extremism drives out moderation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 861-887, April.
    5. Baños-Pino, José F. & Boto-García, David & Zapico, Emma, 2021. "Persistence and dynamics in the efficiency of toll motorways: The Spanish case," Efficiency Series Papers 2021/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    6. Fujiwara, Hikojiro & 藤原, 彦次郎 & Arai, Kazuhiro & 荒井, 一博, 2008. "Group Competition and Personality in an Experimental Public Goods Game," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 49(2), pages 149-161, December.
    7. Konrad, Kai A., 2011. "Strategic aspects of fighting in alliances," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2011-105, WZB Berlin Social Science Center.
    8. Bose, Gautam & Konrad, Kai A., 2020. "Devil take the hindmost: Deflecting attacks to other defenders," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    9. Mr. Jack Diamond, 2005. "Reforming the Russian Budget System: A Move to More Devolved Budget Management?," IMF Working Papers 2005/104, International Monetary Fund.
    10. Luo, Lanlan & Zou, Ziran & Chen, Shou, 2021. "Discounting for public-private partnership projects in China," Economic Modelling, Elsevier, vol. 98(C), pages 218-226.
    11. Miranda Sarmento, J. & Renneboog, L.D.R., 2014. "Public-Private Partnerships : Risk Allocation and Value for Money," Other publications TiSEM b9218010-a357-4c0a-805a-7, Tilburg University, School of Economics and Management.
    12. Subhasish M. Chowdhury & Dongryul Lee & Iryna Topolyan, 2016. "The Max‐Min Group Contest: Weakest‐link (Group) All‐Pay Auction," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 105-125, July.
    13. Marian Moszoro & Gonzalo Araya & Fernanda Ruiz-Nuñez & Jordan Schwartz, 2015. "What Drives Private Participation in Infrastructure Developing Countries?," Palgrave Macmillan Books, in: Stefano Caselli & Guido Corbetta & Veronica Vecchi (ed.), Public Private Partnerships for Infrastructure and Business Development, chapter 0, pages 19-44, Palgrave Macmillan.
    14. 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.
    15. Kyung Hwan Baik & In‐Gyu Kim, 2007. "Strategic Decisions On Lawyers’ Compensation In Civil Disputes," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 854-863, October.
    16. Konrad, Kai A., 2006. "Silent interests and all-pay auctions," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 701-713, July.
    17. Ke, Changxia & Konrad, Kai A. & Morath, Florian, 2013. "Brothers in arms – An experiment on the alliance puzzle," Games and Economic Behavior, Elsevier, vol. 77(1), pages 61-76.
    18. Subhasish M. Chowdhury & Iryna Topolyan, 2016. "Best-shot versus weakest-link in political lobbying: an application of group all-pay auction," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 959-971, December.
    19. Lu, Zhaoyang, 2011. "Modeling the yearly Value-at-Risk for operational risk in Chinese commercial banks," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 82(4), pages 604-616.
    20. Gerhardt, Holger & Schildberg-Hörisch, Hannah & Willrodt, Jana, 2017. "Does self-control depletion affect risk attitudes?," European Economic Review, Elsevier, vol. 100(C), pages 463-487.

    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:62:y:2018:i:c:p:12-20. 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.