The process of highway privatization in Italy and Japan

Laurino, Antonio and Grimaldi, Raffaele (2010): The process of highway privatization in Italy and Japan. Published in: General Proceedings of the XII Scientific Meeting of the Italian Society of Transport Economics (SIET)

Abstract

In the last decade, the private sector has increased its role in the highways sector both through the construction and management of new assets. Private sector involvement, often justified by the need to ease public expenditure, allows a reduction in public participation for new investments. The public sector remains in charge of other important issues such as regulation, but privatization entails the transfer of a natural monopoly to another subject with completely different objectives compared with the public operator. The present work wants to analyse the highway privatization processes in Italy and Japan focusing on the two approaches and on their differences; the paper tries to evaluate the policies applied and their consequences on the general economic well – being according to a public economics viewpoint. Italy implemented a real privatization process (even if some regulatory issues have risen) while Japan still faces a strong public presence.

• Item Type: MPRA Paper
• Language: Italian
• Keywords: privatization, highways, natural monopoly, Italy, Japan
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R42 - Government and Private Investment Analysis ; Road Maintenance ; Transportation Planning; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R48 - Government Pricing and Policy; L - Industrial Organization > L4 - Antitrust Issues and Policies > L43 - Legal Monopolies and Regulation or Deregulation

References

Autorità Garante della Concorrenza e del Mercato, (2008), Schemi di convenzione con la società ANAS S.P.A. sottoscritti dalle società concessionarie autostradali, Segnalazione AS455, bollettino No. 18. Roma (Italy).

Albalate D., Bel G., Fageda X., (2009),”Privatization and regulatory reform of toll motorways in Europe”, Governance: An International Journal of Policy, Administration and Institutions, Vol. 22, No. 2, pp. 295 – 318.

ASPI, (2007), Autostrade a 7 anni dalla privatizzazione – Fatti, numeri e risultati, Autostrade per l’Italia.

Benfratello L., Iozzi A., Valbonesi P., (2005), “Privatization, regulation and productivity in the Italian motorway industry”, Marco Fanno working paper series n.0002, University of Padua.

Beria P., Ponti M. (2009), Regulation of investments on transport infrastructures in Italy, 2nd Annual Conference of Competition and Regulation in Network Industries, Brussels, Belgium, November 20, 2009.

Biggar D. (2008), “Is Protecting Sunk Investments by Consumers a Key Rationale for Natural Monopoly Regulation?”, Review of Network Economics, Volume 8, Issue 2.

Corte dei Conti (2010), Obiettivi e risultati delle operazioni di privatizzazione di partecipazioni pubbliche, Sezione centrale di controllo sulla gestione delle amministrazioni dello Stato, Collegio di controllo sulle entrate, Magistrato istruttore e relatore: Luigi Mazzillo. Italian Court of Audit. Roma (Italy)

Fielding J.G., Klein D.B. (1993), “How to franchise highways”, Journal of Transportation Economics, Volume 2, No 27, 113-130.

Greco A., (2005), “Regulation and licensee companies in the Italian Highways Network”, paper presented at the workshop “Highways”, Bergamo (Italy), November 26 – 27, 2004.

Kimura F., Maeda M., (2005), “Transport Infrastructure Development in Japan and Korea: Drawing Lessons for the Philippines”, paper presented at Regional Conference on Investment Climate and Competitiveness in East Asia: From Diagnostics to Action, 21-22 November 2005, Kuala Lumpur (Malaysia).

Mizutani F., Uranishi S., (2006), “Privatization of the Japan Highway Public Corporation: Policy Assessment”, paper for the 46th Congress for the European Regional Science Association.

Molteni C., (2002), “The economic performance of Italy and Japan: comparative reflections”, Occasional papers in Japanase studies, No. 4, Edwin O. Reischauer Institute of Japanase studies, Harvard University.

Tomoyuki F., (2009), “Expressway in Japan – Toll road system and status”, presentation at International Seminar on Road Development, Dushanbe (Tajikistan), 4 - 5 November 2009.

Ragazzi G., Greco A., (2005), “History and regulation of Italian highways concessions”, Transportation Economics, Volume 25, 121-133.