Alternative Ways of Financing Infrastructure Investment: Potential for ‘Novel’ Financing Models

This report examines the issue of financing (transportation) infrastructure investment projects. It looks closely at what market failures result in the private sector not being able to cover the investment requirement itself. It then assesses the government failures associated with intervention, and identifies what public–private partnerships (PPPs) offer in overcoming these failures. The limitations of PPPs are then addressed, and the regulated asset base (RAB) model is introduced as a potential alternative, with an assessment of its advantages and disadvantages.

This tool is included in the Transportation Toolkit from the LEDS Global Partnership.

When to Use This Tool

While building a low emission strategy for your country's transportation system, this tool is most useful during these key phases of the process:

• Evaluate System - Assessing the current transportation situation

• Assess Opportunities - Identifying opportunities for low-carbon transport

Learn more about the key actions you need to take to build a successful LEDS.

How to Use This Tool

This tool is most helpful when using these strategies:

• Avoid - Cut the need for travel
• Shift - Change to low-carbon modes
• Improve - Enhance infrastructure & policies

Learn more about the avoid, shift, improve framework for limiting air pollutants and greenhouse gas emissions.

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