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The impact of optimal rail access charges on frequencies and fares

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  • Börjesson, Maria
  • Rushid, Ajsuna R.
  • Liu, Chengxi

Abstract

Sweden has been a front runner in vertical separation. We use data from the business long-distance corridor in Sweden to calibrate and define a demand and supply model. We simulate how the profit, welfare, fares, frequencies, modal shares and train size depend on the level of the track charges. We simulate the welfare optimal track charges, given different levels of congestion on the track, hence using the charges as a pricing instrument to allocate the train slots efficiently. We find that increases in charges have a limited impact on fares but larger impacts on the frequency. When the length of the trains can be extended and when the crowding penalty is high, the impact of higher track charges on the frequencies is larger. Higher track charges increase the length of the trains if possible. The intermodal competition from road and air has a significant impact on rail fares.

Suggested Citation

  • Börjesson, Maria & Rushid, Ajsuna R. & Liu, Chengxi, 2021. "The impact of optimal rail access charges on frequencies and fares," Economics of Transportation, Elsevier, vol. 26.
    • Handle: RePEc:eee:ecotra:v:26-27:y:2021:i::s2212012221000228
    DOI: 10.1016/j.ecotra.2021.100217
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    2. Brand, Christina & Sieg, Gernot, 2022. "An integral interval timetable for long-distance passenger rail services: Time to reconsider targeting on-track competition," Economics of Transportation, Elsevier, vol. 32(C).

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