Massiani, Jerome and Ragazzi, Giorgio (2008): Costs and efficiency of highway concessionaires: a survey of Italian operators. Published in: European Transport No. 38 (2008): pp. 85-106.
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Measuring the productivity of highway concessionaires is very relevant, especially when a price cap regulation is applied where tariff increases are based on expected improvements of productivity. Output may be measured in terms of traffic or network length, or a combination of both, while quality of service should ideally be accounted for. To measure productivity we consider only operating costs, as amortization and financial costs depend upon the original highway design and historical costs. A cross section analysis of the Italian concessionaires shows that: 1) operating costs depend on both traffic and capacity; 2) economies of scale are relevant but their estimate is very sensitive to the model specification; 3) there are large differences in efficiency among operators, indicating that there could be significant room for yardstick competition. We subsequently consider the main economic data regarding the major Italian concessionaire (Autostrade spa) over two decades. Revenues increased greatly, even more than traffic, while operating costs remained substantially stable in real terms, as the automation of toll collection allowed the company to reduce the number of collectors by almost half. Finally, a comparison between Italian and French concessionaires shows that the latter have much lower operating costs, which cannot be entirely explained by economies of scale or lower personnel costs.
|Item Type:||MPRA Paper|
|Original Title:||Costs and efficiency of highway concessionaires: a survey of Italian operators|
|Keywords:||Highway; Regulation; Productivity; Price-cap|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R42 - Government and Private Investment Analysis ; Road Maintenance ; Transportation Planning
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L91 - Transportation: General
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R48 - Government Pricing and Policy
|Depositing User:||Unnamed user with email email@example.com|
|Date Deposited:||28. Feb 2012 15:47|
|Last Modified:||15. Feb 2013 04:22|
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