HighlightsThe investment behaviors and incentive impacts are explored in a toll road project.Demand uncertainty and market entry flexibility are considered.The real option and optimization theory is leveraged to derive rich insights.A numerical study is conducted to enrich the results.The results shed light on the investment and policy decision-makings.

    AbstractThis paper elaborates the impacts of government incentives on the private investment behaviors including the choices of investment timing, capacity, and price under demand uncertainty. The results suggest that revenue guarantee, concession period extension, lump-sum subsidy, and unit subsidy can induce timely investment. Revenue guarantee and concession period extension have limited impacts on the choices of capacity and price. Lump-sum subsidy leads to a smaller capacity and a higher price, while unit subsidy leads to a larger capacity and a lower price when comparing to the choices by a monopoly without government incentives.


    Zugriff

    Zugriff prüfen

    Verfügbarkeit in meiner Bibliothek prüfen

    Bestellung bei Subito €


    Exportieren, teilen und zitieren



    Titel :

    Government incentive impacts on private investment behaviors under demand uncertainty


    Beteiligte:
    Li, Shuai (Autor:in) / Cai, Hubo (Autor:in)


    Erscheinungsdatum :

    2017-03-16


    Format / Umfang :

    15 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




    Public or private? Optimal organization for incentive-based travel demand management

    Wu, Jiyan / Tian, Ye / Sun, Jian et al. | Elsevier | 2023


    Transport Infrastructure Investment and Demand Uncertainty

    Proost, Stef / van der Loo, Saskia | Taylor & Francis Verlag | 2010



    Incentive regulation will generate investment

    Murray, Hughe | IuD Bahn | 1999


    Incentive regulation will generate investment

    British Library Online Contents | 1999