Engel E., Fischer R., Galetovic A. (2021).
When and How to Use Public-Private Partnerships in Infrastructure. In Glaeser E. L., Poterba J. M., Economic Analysis and Infrastructure Investment, Chapter 6. University of Chicago Press.
Public-private partnerships, also known as PPPs, P3s, and concessions, emerged in recent decades as a new organizational form to provide public infrastructure. 1 Even though public provision continues to be the dominant procurement option, investment in transport PPPs over the past 25 years has been considerable, adding investments of€ 203 billion in Europe and $535 billion in developing countries. 2 In some countries, investment via PPPs in other types of infrastructure, such as hospitals and schools, has also been significant. By comparison, PPP investments in the US have been relatively small. PPPs are funded with a combination of user fees and government transfers. For example, a road in high demand can be funded entirely with tolls, while government transfers are usually the main funding source for schools and hospitals.