Revenue Risk Mitigation Options for Toll Roads

M. Rouhani, Omid (2015): Revenue Risk Mitigation Options for Toll Roads.

Abstract

The major risk associated with the provision of toll facilities results from uncertain future demand/revenue generated from the facilities. In this paper, I examine various options for mitigating toll revenue risk and provide a set of recommendations as to how revenue risk mitigation should be pursued. In addition to conducting more careful traffic revenue studies and risk analyses, policy makers can provide more flexible tolling schedules, adopt advanced toll collection technology, and limit the non-compete clause included in many toll road deals with private operators.

• Item Type: MPRA Paper
• Language: English
• Keywords: Risk mitigation; revenue risk; pricing method; toll collection technology; non-compete clause.
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D47 - Market Design; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R42 - Government and Private Investment Analysis ; Road Maintenance ; Transportation Planning

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