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Revenue Risk Mitigation Options for Toll Roads

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  • 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

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    File URL: https://mpra.ub.uni-muenchen.de/67662/1/MPRA_paper_67662.pdf
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    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. 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.
    3. 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.
    4. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    5. 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.
    6. 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.
    7. 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).
    8. Robert Bain, 2009. "Error and optimism bias in toll road traffic forecasts," Transportation, Springer, vol. 36(5), pages 469-482, September.
    9. R. Richard Geddes, 2011. "The Road to Renewal: Private Investment in U.S. Transportation Infrastructure," Books, American Enterprise Institute, number 29723, September.
    10. 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.
    11. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    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.
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    Cited by:

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

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    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

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