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The BCA of HSR: Should the Government Invest in High Speed Rail Infrastructure?

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Author Info

  • De Rus Ginés

    (University of Las Palmas de G.C., Spain, and University Carlos III de Madrid, Spain)

Abstract

This paper deals with public investment in High-Speed Rail (HSR) infrastructure and tries to understand the economic rationale for allocating public money to the construction of new HSR lines. The examination of data on costs and demand shows that the case for investing in HSR requires several conditions to be met: an ex ante high volume of traffic in the corridor where the new lines are built, significant time savings, high average willingness of potential users to pay, the release of capacity in the conventional rail network and airports. On the contrary, net environmental benefits seem to be insignificant in influencing the social desirability of HSR investment. This paper discusses, within a cost-benefit analysis framework, under which conditions the expected benefits could justify the investment in HSR projects.

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File URL: http://www.degruyter.com/view/j/jbca.2011.2.1/jbca.2011.2.1.1058/jbca.2011.2.1.1058.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Benefit-Cost Analysis.

Volume (Year): 2 (2011)
Issue (Month): 1 (January)
Pages: 1-28

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Handle: RePEc:bpj:jbcacn:v:2:y:2011:i:1:n:2

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Web page: http://www.degruyter.com

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  1. Natalia Zinovyeva & Manuel F. Bagues, 2010. "Does gender matter for academic promotion? Evidence from a randomized natural experiment," Working Papers 2010-15, FEDEA.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. High-speed rail: when should governments invest?
    by Dave Simpson in hand picked... and carefully sorted on 2012-01-10 09:30:32
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Cited by:
  1. Jiang, Changmin & Zhang, Anming, 2014. "Effects of high-speed rail and airline cooperation under hub airport capacity constraint," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 33-49.
  2. Socorro, M. Pilar & Viecens, M. Fernanda, 2013. "The effects of airline and high speed train integration," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 160-177.

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. High-speed rail in Wikipedia (English)
  2. User:FlyAkwa/hsr in Wikipedia (English)

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