Transportation, Economy, and Society Flashcards
Transportation development ushers ____ & encourages
_____ in an area. The development of transportation systems is
embedded within the scale and context in which they take place.
economic improvements
urbanization
Regulation, Deregulation, and Privatization = towards ___
transport efficiency
Transport as a universal good: man is dependent on it
1.
2.
3.
To manage complex pattern of mobility
Manage the negative externalities of transport
Security (recent)
___ is involved in the overall regulation and management of transport activities
because the conditions rarely exist for an entirely free market in transport to function
State
- No accepted, or straightforward, definition: legal mechanisms
- depends on the level of aggregation and the country of origin.
- The social basis of ____ is often justified on the basis of an economic rationale.
REGULATION
____ seeks to promote both efficiency and equity
Regulation
- Self-regulation
- Free competition is sufficient to ensure efficiency of markets
- Regulation is to ensure free competition
Competition where possible, regulation only when necessary
Neo-Liberals
- Free markets as neither natural nor desirable
- Markets are created by governments, ordered by institutions, sustained by
regulations - Regulation is the very definition of the market
- Regulation & Competition are complements rather than alternatives
Social-Institutional
Holy trinity of any regulatory framework:
- Compliance: lifeblood of regulation
- Legitimacy: only thru democratic process
- Trust: thru shared norms & repeated contacts
_____ of the state’s existing functions was taking place as privatization and
deregulation significantly curtailed the public provision of services.
Hollowing out
The process of_____ – the introduction of new and different state functions to
replace old ones being discontinued – was always in evidence
filling in
______ should not be interpreted as a simple
reduction of state intervention and control, but rather, they are part
of a broader process of state restructuring which incorporates elements
of both deregulation and re-regulation as established modes of organizations are dismantled and new ones established. (Peck, 2001).
Privatization and deregulation
involve commercial contracts between public authorities (state or local) and private
businesses in the design, construction, financing and operation of public infrastructure and services that have traditionally been delivered by the public sector.
PUBLIC-PRIVATE PARTICIPATION
- Framework that – while engaging private sector – acknowledge & structure the role
of gov’t in ensuring that social obligations are met & successful sector reforms &
public investments are achieved - Allocates tasks, obligations and risks in an optimal way
- Allocate risks to partners who are best able to manage those risks & thus minimize
costs while improving performance
PPPs
- contracts transfer obligations to the private sector rather than emphasizing
opportunity for partnership - Backlash led to legitimate public concerns, thus PPPs
PSP (Private Sector Participation)
- Involves the sale of ownership in a company or operating assets by the public sector
- Often accompanied by sector-specific regulatory arrangements to take account of social & policy concerns
Privatization
Common Characteristics of PPPs
- Long contract duration, fixed term (50 yrs)
- Financing comes in part from the private sector, but requires payments from the
public sector and/or users over the lifetime of the project - An attempt to distribute risks between the public partner and the private partner according to the respective ability of the parties to assess, control and cope with
them.
- BOT :
- BOT :
- BOO:
- BOOT:
- BLT:
- BTO:
- BT:
- CAO:
- DBFO:
- DOT:
- ROT:
- ROT :
- ROO:
- BOT : Build, Operate, Transfer
- BOT : Build, Own, and Transfer
- BOO: Build, Own, Operate
- BOOT: Build, Own, Operate, & Transfer
- BLT: Build, Lease, Transfer
- BTO: Build, Transfer, Operate
- BT: Build, Transfer
- CAO: Contract, Add, Operate
- DBFO: Design, Build, Finance, & Operate
- DOT: Develop, Operate, Transfer
- ROT: Rehabilitate, Operate, Transfer
- ROT : Rehabilitate, Own, and Transfer
- ROO: Rehabilitate, Own, Operate
contractual arrangement whereby the proponent
undertakes the construction, including financing of a given infrastructure facility and the
operation and maintenance thereof. The proponent operates the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals and charges
BUILD-OPERATE-TRANSFER
a contractual arrangement whereby the proponent undertakes the financing and construction of a given infrastructure or development facility and after its completion turns it over to the government agency or local government unit concerned which shall pay the proponent on an agreed schedule its total investment expended on the project plus a reasonable rate of return thereon.
BUILD AND TRANSFER
a contractual arrangement whereby a proponent is
authorized to finance ,construct, own, operate and maintain an infrastructure or development facility from which the proponent is allowed to recover its total investment, operating and
maintenance costs plus a reasonable return
BUILD-OWN-AND-OPERATE
a contractual arrangement whereby a proponent is authorized to finance and construct an infrastructure or development facility and upon its completion turns it over to the government agency or local government unit concerned on a lease arrangement for a fixed period after which the ownership of the facility is automatically transferred to the government agency or local government concerned.
BUILD-LEASE-TRANSFER
a contractual arrangement whereby the proponent adds to an existing infrastructure facility which it is renting from the government. It operates the expanded project over an agreed franchise period
CONTRACT-ADD-OPERATE
a contractual arrangement whereby favorable conditions external to a new infrastructure project which is to be built by a private project proponent are integrated into the arrangement by giving that entity the right to develop adjoining property and thus enjoy some of the benefits the investment create
DEVELOP-OPERATE-TRANSFER
a contractual arrangement whereby an existing facility is turned over to the private sector to refurbish, operate and maintain for a franchise period
REHABILITATE-OPERATE-TRANSFER
contractual arrangement whereby an existing facility
is turned over to the private sector to refurbish and operate with no time limitation imposed on ownership.
REHABILITATE-OWN-TRANSFER
Benefits of a BOT Scheme
- Alternative source of financing
- No investment cost to LGUs
- Offers proper allocation of risks
- Better and reliable service and consistent supply
- Project sustainability
- New technology and skills
- built in 1996 by the Metro Rail Transit Corporation (MRTC) a private consortium
under a Build-Lease-Transfer (BLT) agreement - MRTC entitled them to receive equity rentals over a period of twenty five (25) years.
- The loans are backed by a sovereign undertaking of the government, as agreed with
the DOF, to share risks with investors and credits. - As with regards to the operation of MRT 3, the government has been subsidizing portions of their operational cost which could not be sufficiently covered by their revenues.
MRT line 3
Motivation for engagement in a PPP
- Mobilization of Private Capital
- Tool for greater Efficiency
- Catalyst for broader sectoral reform
The most dramatic trend in urban travel during the 20th century has been the rise in ______
car ownership and use
1st major surge occurred in 1920s in the USA with ______, the first car mass produced and sold at a price affordable to working-class households.
Henry Ford’s Model T
The _____ is positively correlated with ____ or income levels (Small, 1992):
hence as real income increases over time, the demand for faster modes of travel also increases.
value of time
wage rates
____ is the ease of movement between places.
Accessibility
___ in Propensity for interaction = ____cost of movement
Increase, Decrease
It is a function both of spatial structure and of the transportation system.
* ____ is used to describe the spatial distribution of activity sites with respect to a
given location.
Accessibility
For any given _____, mobility increases with the supply of transportation services available and the ability to use or purchase these services.
land-use distribution
Activity-based models of travel demand
______: Models of population segments
_______: Models of individuals or households
AGGREGATE MODELS
DISAGGREGATE MODELS
______ seek to capture the complex process of choosing a set of daily activities and their location, timing and sequencing.
Activity-based models
Disaggregate research is ___
trip-based
Focuses on the interplay of space and time
Hagerstrand’s Model
3 categories of time and space constraints affecting activity patterns
Capability Constraints
Coupling constraints
Authority constraints
describes the limits of the physical system, the
transportation technology available and the fact that one can only be in one place at a given time.
Capability Constraints
describe the schedule dependences of activities, such as the hours of operation of stores, or an individual’s work schedule.
Coupling constraints
describe the legal, social or political limitations placed
on access, such as the age requirement for a driver’s license
Authority constraints
- Car ownership is significantly related to _____
- As economic well-being improves in lower income countries, car ownership will also increase.
- The greatest dispersion of car ownership rates is found among the higher-income
countries. - World’s poorer countries perform worst on most measures of transport availability, use & investment.
per-capita income
- Travel patterns within countries are highly varied, yet the same general trend of increasing car use is evident.
- Trend of increasing car use is obvious, but the rate of increase varies greatly.
- Increased car use has come at the expense of both public transport and non-motorized travel, depending on the urban area.
- Rising car ownership is illustrated by the decrease in the number of households with no vehicles and increase in households with more than one vehicles.
- Public-transport use has continued to lose market share.
- Another trend is an increase in trip distances.
- The purpose of trip-making has changed in that work trip constitutes a declining share
of all travel, in terms of both trips and travel distance. - Declining share of work trips has taken place despite increased labor-force participation rates.
erm
Rise in car use and decline in other modes can be attributed to the following:
- RISING AFFLUENCE
- CHANGING HOUSEHOLD STRUCTURE
- LABOR FORCE PARTICIPATION BY WOMEN
- CHANGING LAND USE PATTERNS
Major trend in shifting land-use is due to decentralization, made possible by
suburbanization.
- Large scale population _____ is followed by large-scale employment
decentralization and emergence of agglomeration sites - _____ has been accompanied by dispersion
suburbanization
Decentralization
- Car provides unprecedented levels of mobility.
- Rising car use has been supported by larger __________and favored employment as well as population decentralization.
- As _______ become more complementary
to car use, other modes of transport has become less competitive. - The social, environmental, and financial consequences of increasing reliance to car
use has significant effects.
economic trends that has increased per-capita income
decentralization advances and land-use patterns
ECONOMIC FORCES AFFECTING DECENTRALIZATION:
- Rising per capita income
- Economic restructuring
- Changing in economic structure
- Improvements in ICT
