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When are subsidies to trans-European network projects justified?

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  • Proost, Stef
  • Dunkerley, Fay
  • Borger, Bruno De
  • Gühneman, Astrid
  • Koskenoja, Pia
  • Mackie, Peter
  • Loo, Saskia Van der

Abstract

The trans-European transport network (TEN-T) encompasses the major planned transport infrastructure in Europe, ranging from high speed rail to port infrastructure. Projects in this category are considered priority projects and receive European subsidies; but these have been insufficient to get these projects off the ground. This paper addresses two research questions. First, it sketches the basic economics of cross-boundary infrastructure projects: what pricing and investment policies can we expect, what is the role of through traffic and high fixed costs of infrastructure? Second, it examines briefly what lessons the EU could draw from the experience of other existing federal funding institutions like the US and Germany. These ideas are used to propose a new subsidy scheme for the TEN-T projects.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 45 (2011)
Issue (Month): 3 (March)
Pages: 161-170

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Handle: RePEc:eee:transa:v:45:y:2011:i:3:p:161-170

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Keywords: Transport investments Pricing Infrastructure subsidies International transport;

References

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  1. Bruno De Borger & Fay Dunkerley & Stef Proost, 2006. "The interactin between tolls and capacity investment in serial and parallel transport networks," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische Studiën ces0617, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  2. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Inefficiencies and scale economies of European airport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 39(5), pages 341-361, September.
  3. DE BORGER, Bruno & DUNKERLEY, Fay & PROOST, Stef, 2008. "Capacity cost structure, welfare and cost recovery: Are transport infrastructures with high fixed costs a handicap?," Working Papers 2008001, University of Antwerp, Faculty of Applied Economics.
  4. Bruno De Borger & Stef Proost & Kurt Van Dender, 2008. "Private Port Pricing and Public Investment in Port and Hinterland Capacity," Journal of Transport Economics and Policy, London School of Economics and University of Bath, London School of Economics and University of Bath, vol. 42(3), pages 527-561, September.
  5. De Borger, B. & Dunkerley, F. & Proost, S., 2007. "Strategic investment and pricing decisions in a congested transport corridor," Journal of Urban Economics, Elsevier, vol. 62(2), pages 294-316, September.
  6. Brian Knight, 2003. "Parochial Interests and the Centralized Provision of Local Public Goods: Evidence from Congressional Voting on Transportation Projects," NBER Working Papers 9748, National Bureau of Economic Research, Inc.
  7. Richard Arnott & Marvin Kraus, 1995. "Self-Financing of Congestible Facilities in a Growing Economy," Boston College Working Papers in Economics, Boston College Department of Economics 304., Boston College Department of Economics.
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Cited by:
  1. Monios, Jason & Wilmsmeier, Gordon, 2012. "Giving a direction to port regionalisation," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(10), pages 1551-1561.
  2. Sciara, Gian-Claudia, 2012. "Financing congressional earmarks: Implications for transport policy and planning," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(8), pages 1328-1342.
  3. Nikolaos Thomopoulos & Susan Grant-Muller, 2013. "Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach," Transportation, Springer, Springer, vol. 40(2), pages 315-345, February.
  4. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.

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