Evaluation of the potential of infrastructure funds: The case of inland waterways in Germany

Abstract

Given the critical need for sustainable transportation solutions, inland waterways (IWs) constitute a crucial yet underfunded mode of transport. This study examines deficiencies in current infrastructure funding and analyzes infrastructure funds (IFs) as an alternative funding mechanism and potential means to revitalize German waterways. Central to this investigation is the analysis of the German population's willingness to pay (WTP) for such funds. To this end, a comprehensive online survey of German households was conducted, and multivariate regression analysis was employed to identify key factors influencing public support for various fund designs. The results reveal that personal experiences with flooding significantly affect WTP and underscore the role of socio-economic variables in shaping public attitudes toward infrastructure funding. The findings indicate that well-designed IFs, combined with effective communication strategies to raise awareness of the importance of waterways, could significantly enhance public support. The study demonstrates that IFs have significant potential as a strategic tool for mobilizing public funding, thereby supporting the sustainable development and maintenance of essential yet underfunded infrastructure. IFs present a promising solution to the financial challenges facing critical public goods such as waterways.

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