Annual car sales worldwide 2010-2022, with a forecast for 2023, Number of cars sold in the U.S. 1951-2021, Battery electric vehicles in use worldwide 2016-2021, Annual gas prices in the United States 1990-2021, Automotive industry worldwide - statistics & facts, Motorcycle industry in the United States - statistics & facts, Profit from additional features with an Employee Account. Wang et al. 565, no. Because of lack of transparency in China, this problem is often not within the publics range of supervision. This strategy not only lacks social responsibility, but is also illegal. Use of tolling to help pay for Expressways is being increasingly adopted in countries whose highway capital and operating expenditure requirements outstrip public resources to pay for them. The use of an administrative monopoly not only incurs transaction costs but also reaps corresponding revenue. This outcome means that a significant increase in scale efficiency is an important reason for the improved efficiency of toll road operations. Toll plaza at the junction of National Highways G106 and G316 in Tongshan County, Hubei Nearly all Chinese expressways and express routes charge tolls, although they are not often networked from one toll expressway to another. Using the globally referenced data envelopment analysis- (DEA-) Malmquist Index, this study first measures the operational efficiency of Chinas toll highway sector from 2010 to 2017. 3, pp. Chart. The estimated coefficient of toll road density is 6.678, which is statistically significant at 1% level. Accessed January 18, 2023. https://www.statista.com/statistics/759691/china-toll-road-length-by-ownership/, Ministry of Transport of China. A. Ahmadabadi and G. Heravi, The effect of critical success factors on project success in Public-Private Partnership projects: a case study of highway projects in Iran, Transport Policy, vol. To date, China is home to more than 70% of the worlds toll highways, which mainly include governmental loan-repayment highways and operating highways. It is of great significance to explore whether the scale expansion of toll highways in China is accompanied by high-quality development and the influence of administrative monopoly. However, the positive effect is weakened by fiscal decentralization. The historic high reliance on debt finance from State and commercial banks is risky given the likely volatility of interest rates and the large debt-carrying burden which results. S. Wallsten, The future of digital communications research and policy, Federal Communications Law Journal, vol. In 2017, the national toll road operating efficiency averaged 1.1125, an increase of 11.25% compared to 2010. Over a short period of 20years, the scale of Chinas toll highways expanded to rank first globally. Share of toll roads in the total road network in China 2014-2020 Published by Statista Research Department , Oct 7, 2022 In 2020, toll roads made up a share of 3.45 percent of the overall. According to the Outline for Building Chinas Strength in Transportation (dated September 2019), jointly released by the Central Committee of the Communist Party of China and the State Council, the transport sector should adjust its focus from speed and scale to quality and efficiency. 173, no. 1, pp. According to recently released data by Chinas Ministry of Transportation, revenue from toll roads was 409.78 billion yuan in 2015 while operating expenses were 728.51 billion yuan, thus showing a loss of 318.73 billion yuan twice as high as in 2014. Toll Road Operatio in China industry statistics Biggest companies in the Toll Road Operatio industry in China A paid subscription is required for full access. (October 28, 2021). 11, p. 2947, 2020. Ministry of Transport of China. China has long preferred a model of state-to-state lending. The price of agricultural products, for example, is no longer decided by production season, but by fluctuations in transport costs. Therefore we propose: Hypothesis 2. Hypothesis 2 is corroborated from the perspective of the sector structure. Hence, this study examines the relationship between economic performance, administrative monopoly, and scale efficiency with respect to toll highways, and explores how the administrative monopoly with Chinese characteristics affects the transformation of toll highways from scale to efficiency. The regression results in columns (I) and (III) show that, after an interaction term is introduced, toll highway density has a positive effect on the TFP of the toll highway sector. Use Ask Statista Research Service. To fill this gap, this study examines the relationship between the administrative monopoly, operation scale, and economic performance, and analyzes the root causes of the operational inefficiency of the toll highway sector, as well as the associated transmission mechanism. Some media did a hypothetical loan repayment calculation based on a 5 year or longer loan with an interest rate of 6 percent. You need at least a Starter Account to use this feature. D. Donaldson, Railroads of the Raj: Estimating the Impact of Transportation Infrastructure, NBER Working Paper, London, UK, 2010. Maintenance and rehabilitation costs in China will inevitable increase over time and it is important to recognize that the Expressway system will face a big financial challenge when the concentration of road building in the last 20 years generates a corresponding spike in renewal needs in the future. In China, the rapid development of toll highways is powerfully impelled by the administrative forces of governments. Since there are no toll roads in general in Hainan and Tibet, after removing the Hainan, Tibet, Hong Kong, Macao, and Taiwan regions, this paper selects the remaining 29 provinces as research samples. Japan went through similar process in developing its toll road system [See Box]. Delaware There are three toll roads in Delaware: John F. Kennedy Memorial Highway (Delaware Turnpike) Korean War Veterans Memorial Highway U.S. Route 301 (US 301) Who Owns Delaware Toll Roads Q. L. Wang, Y. R. Zheng, Z. Y. Qiu, and X. P. Li, Appropriate degree of paternalism in state-owned economy of toll road industry, Economic Problems, vol. Implementing the optimization of the property rights structure is an important way to break the administrative monopoly of the industry. Therefore, no significant scale effect has emerged in the toll highway sector over a long period. Hence, the finalized multilevel operation management system comprises the group company or highway authority, branch office or management office, toll management stations, and toll stations or overload control stations. G. Duranton and M. Turner, The Fundamental Law of Road Congestion: Evidence from US Cities, American Economic Review, London, UK, 2011. In the past, the United States also implemented a toll system. 12, pp. 269, pp. The annual compound growth rates of toll roads in the western and northeastern provinces are 0.24% and 7.34%, respectively (the corresponding mileage indices are 1.0024 and 1.0734, respectively), while the annual compound growth rates of the scale efficiency index are 0.99% and 1.62% (corresponding to the SEC index of 0.9901 and 0.9838, respectively). To test Hypothesis 2, the influence of administrative monopoly on toll road operating efficiency, we introduce an intersection term () of administrative monopoly () and toll road scale () into equation (5), obtaining the following model: The strength of administrative monopoly is defined at both provincial and sector levels. The empirical test results show that the administrative monopoly at the industry level will increase the debt burden of the toll road industry, whether from the perspective of industry structure or property rights. His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.You can read more about Kyith here. Li [61] investigated the existing highway management system of Jilin Province and offered specific optimization suggestions. statistic alerts) please log in with your personal account. Accessed January 18, 2023. https://www.statista.com/statistics/759636/china-percentage-of-toll-roads/, Ministry of Transport of China. pp122130, 2019. Even in the USA, more than 4,000kms of the Interstate Highway system are tolled. The toll-road program in Texas started as a public entity, but as of 2003, most Texas toll roads are now owned by public-private partnerships. Some thought it was a big joke.. Two very important economic principles argue for charging for the use of high-standard roads. Yet, the long-term profitability of toll-road operators isn't easy to judge. Technological Progress Change Index (TC) is 0.9829 while the Efficiency Change Index (EC) is 1.1545. Indeed its construction has been an impressive road-building initiative unmatched since the building of the U.S. Interstate Highway System, which, though of similar scale, was delivered without tolls only over a much longer time-frame. The operational efficiency of the toll road industry is the relative relationship between the input and output of toll roads in business activities. They figured that the 4.45 trillion yuan loan debt requires annual interest payments of 267 billion yuan and principal payments of 300 billion yuan. As the reference of each period is the same frontier, the calculation obtained is a single Malmquist index: Among these, represents the input for period , and the output vector indicates the DEA efficiency value with the global leading edge as the reference plane. The Malmquist model of the global reference proposed by Pastor and Lovell [69] is a Malmquist index calculation method. J. K. Wang, P. R. Bai, and H. C. Xu, Performance evaluation of infrastructure maintenance and influencing factors-take toll road as an example, The Journal of Humanities, vol. At that time, highways were built by private investment, but the policy was abolished by the U.S. government after two decades. Y. Crozet and E. Bougna, Towards a liberalised European rail transport: analysing and modelling the impact of competition on productive efficiency, Research in Transportation Economics, vol. In the just over 20 countries that have toll roads, the proportion of toll roads to regular roads is only about 1 percent. 496503, 2015. Many countries who have used tolls as a means of developing a high-capacity toll road system have found that a degree of cross-subsidization of revenue from mature roads to the lower-traffic roads or to new roads was necessary. It is by far the largest asset that CMHP has in its portfolio and will provide a massive boost to its revenue and earnings from 2H2011. 125132, 2017. For the most of congested Expressway corridors, particularly in urban and peri-urban areas, it would be wise to maintain also the option of additional congestion pricing, whether as part of the road tolling system or supplemental to a vignette system, as the function of such a charging system is not just to recover construction loans but to manage traffic levels and reduce congestion. Foreign Companies Are Buying Up American Highways and Bridges Built by U.S. Taxpayers. L. C. Yu and W. Zhang, Intensity and efficiency loss of industry administrative monopoly in China, Economic Research Journal, vol. Therefore, to continue improving the economic performance of the toll road industry, it is necessary to govern an excessive administrative monopoly by bringing out the effect of the economies of scale and overall improve the toll road industrys economic performance. In recent years, the publicprivate partnership (PPP) mode has been favored by industry managers because PPP can not only introduce private capital but also pay attention to the competitive advantages so as to achieve efficiency improvement theoretically [7], However, PPP had not been supported by empirical evidence in practice, and concession did not significantly improve operational efficiency in toll highways [8]. The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. However, during 20102017, the compound annual growth rate of toll road mileage is 1.03%, while the annual compound growth rate of the SEC is only 0.56%, which is much smaller than the former. For the measurement of toll road operating efficiency, the more mature DEA series algorithm is proposed to consider the technological advancement or degradation leading to movement of the production frontier. Are you interested in testing our corporate solutions? On a single day in June, an Australian-Spanish partnership paid $3.8 billion to lease the Indiana Toll Road. Conversely, the more essential the goods are to the poor, the greater the proportion of transport costs becomes, and the greater the burden to the public. 514518, 2019. China has the highest percentage of toll roads in the world. Chinas decentralized institutional and funding mechanisms for delivery of the Expressway network have been instrumental. 6, pp. Please do not hesitate to contact me. 895947, 1997. They're safe, convenient and can get you where you want to be, sooner. We use cookies to understand how you use our site and to improve your experience. What happens if you don't pay? As a typical institutional feature of China, administrative monopoly plays a decisive role in the operation of toll highways [11]. On the one hand, the government has interfered too much with the market players, constraining the vitality and space of social capital and creating power rent-seeking and corruption. 11711190, 2020. Get full access to all features within our Corporate Solutions. But with a higher dividend payout, it can raise its valuation so that it can tap equity and do a combination of internal funds, equity financing and bank borrowing for an acquisition, he says. California Route 241 has always been considered "premier" by California residents but was recently acquired by the Australian Infrastructure Fund (AIXF) for $130 million. Now, it is negotiating to divest the Yuyao toll road, which is in Zhejiang province. Another problem thats specific to CMHP is that acquiring toll-road assets from its parent isnt a straightforward matter. On the other hand, the government is unable to function effectively in areas that require government regulations such as environmental protection and franchise regulations. J. Q. Specifically, huge fund investment is required throughout the construction, operation, and maintenance of toll highways, and toll income alone cannot cover the huge debt burden. Although China has more than 70 percent of the worlds toll roads, they suffer a loss every year. Disclaimer & Privacy Policy . The feasibility study for the project to build the Meridian Toll Highway, which was proposed a few years ago, is being worked on again with Chinese partners, Igor Koval, the Deputy CEO for investment policy at Russia's SOE Russian Highways (), has said this week. Copyright 2021 Yan Xu et al. 1, pp. B. Zhang, L. Zhang, J. Wu, and S. Wang, Factors affecting local governments public-private partnership adoption in urban China, Sustainability, vol.
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