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Highway Franchising and Real Estate Values AgEcon
Engel, Eduardo M.R.A.; Fischer, Ronald; Galetovic, Alexander.
It has become increasingly common to allocate highway franchises to the bidder that offers to charge the lowest toll. Often, building a highway increases the value of land held by a small group of developers, an effect that is more pronounced with lower tolls. We study the welfare implications of highway franchises that benefit large developers, focusing on the incentives developers have to internalize the effect of the toll they bid on the value of their land. We study how participation by developers in the auction affects equilibrium tolls and welfare. We find that large developers bid more aggressively than construction companies that own no land. As long as land ownership is sufficiently concentrated, allowing developers in the auction leads to lower...
Tipo: Working or Discussion Paper Palavras-chave: Demsetz auctions; Highway concessions; Private participation in infrastructure; Land Economics/Use; D44; H40; H54; R42; R48.
Ano: 2002 URL: http://purl.umn.edu/28523
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Paying for Safety: Preferences for Mortality Risk Reductions on Alpine Roads AgEcon
Rheinberger, Christoph M..
This paper presents a choice experiment, which values reductions in mortality risk on Alpine roads. These roads are on one hand threatened by common road hazards, on the other hand they are also endangered by natural hazards such as avalanches and rockfalls. Drawing on choice data from frequently exposed and barely exposed respondents, we are not only able to estimate the VSL but to explore how the respondents differ in their individual willingness-to-pay depending on personal characteristics. To address heterogeneity in preferences for risk reduction, we use a non-linear conditional logit model with interaction effects. The best estimate of the VSL in the context of fatal accidents on Alpine roads is in the range of €4.9–5.4 million with distinct...
Tipo: Working or Discussion Paper Palavras-chave: Value of Statistical Life; Choice Experiment; Natural Hazard Mitigation; Traffic Safety; Health Economics and Policy; D81; J17; R42.
Ano: 2009 URL: http://purl.umn.edu/54350
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