Private Finance of Transport Infrastructure: Uneven Regional Development Risks
The article explores how using private money to build transportation infrastructure in the UK affects different regions. They look at how this approach influences the allocation of investment and its outcomes. The study suggests that private financing may not always shift risks as expected due to complex contracts, which can lead to higher costs. By reviewing various projects in air, rail, road networks, and local transport, the authors found that private sector involvement can impact regional development both positively and negatively. The key issues include handling network effects and separating infrastructure and services. Private finance could help improve infrastructure efficiently or hinder future development by increasing maintenance costs. The study concludes that the impact of private sector involvement on regional growth depends on the type of infrastructure and how well it is managed.