Road Pricing and Asset Publicization: A New Approach
In this policy study, Richard Geddes writes that the United States faces major challenges related to the funding of transportation infrastructure, such as roads, bridges, and tunnels. Many states and localities are considering new and innovative models to fund and finance their transportation infrastructure. Such models almost invariably include a greater role for the private sector in the form of public-private partnerships (P3s). Private infrastructure investment is, however, often viewed as providing an alternative financing method. This view overlooks the possibility that private investment in the form of upfront lease payments for newly priced roads can be used to enhance the public appeal of adopting that road pricing. Pricing existing roads generates substantial additional revenue from the current road network while adjusting traffic demand to meet market conditions.