The paper discusses the present regulatory framework in Italy concerning highway infrastructures financing and provides some policy indications. The general Italian situation, including highways, is characterised by insufficient, or even perverse, incentives to efficiency. Also, the norms promote the tendency to overinvestment and “gold plating,” because applied within a weak planning framework. After a theoretical introduction to the financing mechanisms (public funding, PPP, price cap, etc.), the paper starts discussing the possible relationships between profitability and financing. Then, the Italian structure of conceded highways is outlined. A focus on the most significant case is provided, namely the privatisation of Autostrade per l’Italia. The regulatory mechanism adopted, a form of price-cap, is discussed and commented. Finally, some more general conclusions are stressed: the adopted regulation tend to give perverse incentives and to promote overinvestment.

The role of regulation in financing highway infrastructure in Italy

BERIA, PAOLO;PONTI, MARCO GUIDO
2009-01-01

Abstract

The paper discusses the present regulatory framework in Italy concerning highway infrastructures financing and provides some policy indications. The general Italian situation, including highways, is characterised by insufficient, or even perverse, incentives to efficiency. Also, the norms promote the tendency to overinvestment and “gold plating,” because applied within a weak planning framework. After a theoretical introduction to the financing mechanisms (public funding, PPP, price cap, etc.), the paper starts discussing the possible relationships between profitability and financing. Then, the Italian structure of conceded highways is outlined. A focus on the most significant case is provided, namely the privatisation of Autostrade per l’Italia. The regulatory mechanism adopted, a form of price-cap, is discussed and commented. Finally, some more general conclusions are stressed: the adopted regulation tend to give perverse incentives and to promote overinvestment.
2009
Trasporti, Territiorio e Ambiente. La ricerca di un nuovo equilibrio
9788856811582
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/563601
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact