18.13 Conclusion
There is nothing as a free lunch. If the taxpayer wants something, he will have to pay
for it in some way. How far will private promoters apply the BOT approach will
depend on the market driving forces, mainly supply and demand - how much are
people willing to offer and how many to obtain the service?
There are strong arguments for tariff levels and structures that need to reflect both
the economic costs of providing services, including external benefits or costs and the
financial constraints on governments. Efficiency in the use of infrastructure services
is an important social objective, and the way to achieve it is through tariffs that
reflect the incremental economic costs of providing services.
References
Toffler, A. (1980). The third wave. 544 pp. London, Pan.
Walker, C., & Smith, A. J. (1995). Privatized infrastructure (p. 258). London: Thomas Telford
Publications.
References
533
There is nothing as a free lunch. If the taxpayer wants something, he will have to pay
for it in some way. How far will private promoters apply the BOT approach will
depend on the market driving forces, mainly supply and demand - how much are
people willing to offer and how many to obtain the service?
There are strong arguments for tariff levels and structures that need to reflect both
the economic costs of providing services, including external benefits or costs and the
financial constraints on governments. Efficiency in the use of infrastructure services
is an important social objective, and the way to achieve it is through tariffs that
reflect the incremental economic costs of providing services.
References
Toffler, A. (1980). The third wave. 544 pp. London, Pan.
Walker, C., & Smith, A. J. (1995). Privatized infrastructure (p. 258). London: Thomas Telford
Publications.
References
533