Welfare impacts of road construction using a public-private partnership : a CGE analysis of a project

Bayar, Ali; Fortuna, Mário; Rege, Sameer

http://hdl.handle.net/10400.3/4836

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
Paper05-2009.pdf		143.05 KB	Adobe PDF	Download

Send Feedback

Authors

Bayar, Ali

Fortuna, Mário

Rege, Sameer

Abstract(s)

The Azorean Government embarked on a public-private partnership to build a road on the island of São Miguel, to circumvent the budget restriction imposed by the central government. We build a sequentially dynamic general equilibrium model with 45 sectors to measure the welfare changes arising from the project. The initial investment is amortised over a period and the payments are simulated through an increase in income taxes, reduction in transfer payments or calculating the fall in transport margins. We find that under any type of repayment scheme the welfare benefits do not justify the road construction thus making it a poor investment decision.

Keywords

Infraestrutura Viária Parcerias Público-Privadas (PPPs) Public-Private Partnerships Road Infrastructure Azores

URI

http://hdl.handle.net/10400.3/4836

Citation

Bayar, Ali; Fortuna, Mário; Rege, Sameer (2009). Welfare impacts of road construction using a public-private partnership: a CGE analysis of a project, “Working Paper Series”, 5, 21 pp.. Ponta Delgada: Universidade dos Açores, CEEAplA-A.