The U.S. government allowed the Interstate System to become compromised when it failed for decades to properly adjust for inflation the gasoline excise tax used to fund the system and increasingly diverted federal fuel-tax revenues to purposes other than roads. In addition, during the same time period, increases in the cost of road construction significantly outpaced inflation. Privatization, on the other hand, will bring about a series of benefits: it will provide new, much-needed, private capital; facilities will be built more quickly and more efficiently and operated more cost-effectively; execution and pricing risk will be transferred from the public sector to private investors, which can bear more risk and thus may develop more innovative solutions; and new sources of tax revenue will be created.
Infrastructure Innovation — Turning Public Works into Private Ventures
First International Symposium on Transportation and Development Innovative Best Practices ; 2008 ; Beijing, China
2008-04-04
Conference paper
Electronic Resource
English
Infrastructure Innovation-Turning Public Works into Private Ventures
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