Sustainable Transportation for the Climate: How Do Transportation Firms Engage in Cooperative Public-Private Partnerships?

Abstract

This research examines the effectiveness of transportation-sector public-private partnerships (PPPs). Coordination across sectors is needed to reduce transportation-related greenhouse gas emissions. PPPs are of interest to transportation firms, but they may prefer private-sector opportunities given that working with the public sector can present challenges. However, the challenges are not clear and, therefore, this needs research investigation to develop understandings for policy to make PPPs work better for firms. Moreover, this research informs firms so that they may better comprehend and manage the risks of PPPs or choose other opportunities. This empirical research uses a sample of 300 transportation firms across 28 countries. The findings suggest that, although government contracts may be lucrative, the institutional environment of the PPP context is not preferable to other business-oriented private-sector opportunities. If more sustainable transportation is to be constructed to address climate change and other public interests, policymakers may need to rethink PPPs to adapt to the needs of transportation firms.