MISSING DIMENSIONS IN THE PRIVATIZATION DEBATE

The article notes that the potential cost advantages of the private sector may divert attention from other dimensions of the infrastructure privatization decision. Neighborhood and evnironmental concerns relating to the siting of new roads or solid waste facilities, is often as much of a bar to infrastructure investment as cost. The debate over the cost advantages of privatization often fails to distinguish between those savings that are net gains to society as a whole and those that represent transfers from one sector of society to another. This article discusses these issues in some detail, and illustrates them by the example of the Dulles Toll Road Extension in Virginia. Pricing and rates regulation are also discussed. Privatization is most attractive where there are real efficiency gains to be made, and where the private operator faces effective competition. This suggests that the benefits to be derived from private construction and operation of toll roads may be limited.

• Corporate Authors:

  Port Authority of New York and New Jersey

  225 Park Avenue South, 18th Floor
  New York, NY  United States  10003-1604
• Authors:
  • Gomez-Ibanez, Jose A
  • Meyer, J R
  • Luberoff, D E
• Publication Date: 1990

Media Info

• Pagination: p. 25-36
• Serial:
  • PORTFOLIO
  • Volume: 3
  • Issue Number: 2
  • Publisher: SHANOR, REBECCA READ.

Subject/Index Terms

• TRT Terms: Benefits; Costs; Infrastructure; Investments; Private enterprise; Socioeconomic factors; Transportation
• Subject Areas: Administration and Management; Economics; Society; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 00601659
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 30 1990 12:00AM