Value Capture: A Valid Means of Funding PPPs?
Financial Accountability & Management, Forthcoming
Posted: 7 Nov 2014 Last revised: 26 Feb 2016
Date Written: November 6, 2014
This paper considers the use of value capture (VC) as a means of financing public-private partnerships (PPPs) in the United Kingdom (UK). Although some VC techniques are used in the UK, they are employed more widely in the United States of America. After considering the traditional approach to financing UK PPPs, this paper describes the main VC finance instruments. The findings of a series of case studies are then presented and conclusions drawn. While VC financing may prove unpopular with those bearing the cost of infrastructure improvements, it is recommended that such instruments are considered by UK policy makers.
Keywords: value capture, public-private partnerships, infrastructure improvements
JEL Classification: M4
Suggested Citation: Suggested Citation