AEI Press (American Enterprise Institute), Washington, 2011, 205 pages, ISBN-10: 0844743461, ISBN-13: 9780844743462Despite record levels of government spending, America's transportation system is plagued by traffic congestion, decaying infrastructure, and politicization of transportation funding-leading to calamities such as the 2007 collapse an interstate highway bridge over the Mississippi River and political fiascos like Alaska's infamous "Bridge to Nowhere." In The Road to Renewal, R. Richard Geddes surveys the current state of U.S. ground transportation and finds that, like the roads themselves, transportation policy is in desperate need of repair. A shift toward increased use of public-private partnerships (PPPs)-contractual agreements that allow private participation in the design, construction, operation, and delivery of transportation facilities-could significantly improve the quality of U.S. roadways.ContentsPreface IntroductionThree critical transportation policy reforms The problem with fuel taxes A better strategy: fee for road use Congestion pricing: paying according to cost Private investment in transportation infrastructureBasics of public-private partnerships Ppp terminology Types of ppp contracts Transportation ppps in the united statesCompared to what? Why private investor participation is needed Governance under bureaucratic administration Private investment improves governance The governance experience in public toll authoritiesBenefits of ppps: competition, management, and project delivery Ppps create competition in facility management Ppps accelerate project delivery Ppps improve incentives to contain costs and efficiently utilize road capacity Ppps improve incentives to enhance safety Ppps provide incentives and resources to adopt emerging technologies Ppps improve public control over assetsBenefits of ppps: investment, risk transfer, and the rationalization of investment Ppps introduce new classes of investors Global investment in u.s. Transportation infrastructure Ppps offer investors new options Ppps transfer risk from taxpayers to professional risk bearers Private participation reveals the true cost of capital Ppps rationalize transportation investment Public policies to encourage infrastructure investment ConclusionThe benefits of brownfield public-private partnerships Ppp benefits created by brownfield concessions Brownfield leases unlock latent value for facility citizen-owners Intergenerational equity and brownfield pppsThe benefits of private investor participation demonstrated Empirical evidence on the effects of private participation Performance of transportation public-private partnerships abroadPublic-private partnerships in the public interest Managing the ppp process Addressing potential market power Additional contracting issues Ex post opportunismSummary and conclusions
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