World Library  
Flag as Inappropriate
Email this Article

Transport finance

Article Id: WHEBN0000261319
Reproduction Date:

Title: Transport finance  
Author: World Heritage Encyclopedia
Language: English
Subject: Transport economics, Transport/Transport topics, Land transport, Transport, Outline of transport
Collection:
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Transport finance

Transport finance is the subject that explores how transport networks are paid for.

The timing of the money required to finance transport is a principal issue. Many projects are "pay-as-you-go", that is infrastructure, which lasts many years, is expected to be paid out of ongoing cash flow. Other projects are financed with bonds raised in capital markets. Bonds must be secured with an expected future cash flow.

The cash flow, required for either pay-as-you-go or for bonds, must be raised. Common sources are user fees, such as gas taxes, and tolls. Other sources are general revenue. This issue is related to who bears the burden: users or the general public. Even if users bear the burden, that class must be subdivided, e.g. users during peak times or off-peak, freight or passenger traffic, urban or rural users, residents or non-residents (many toll plazas are located on the state line to maximize revenue from non-residents).

A third issue concerns the full costs of transportation. There are monetary costs, which are financed with money, as considered above, but there are also non-monetary costs (sometimes called hidden costs), which are paid for by people's time, by clean air, by peace and quiet, etc. See the discussion of externalities for a fuller explication of non-monetary costs.

See also

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from World Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.