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An economic analysis of track maintenance costs

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  • Johansson, Per
  • Nilsson, Jan-Eric

Abstract

The costs for maintaining different track units are analyzed using Swedish and Finnish railway data for the years 1994-1996 and 1997-1999, respectively. To derive insights on the logic of spending on track maintenance, the analysis is based on few a priori assumptions about underlying structures. We provide indications of scale economies in track maintenance with respect to traffic load and calculate a policy-relevant derivative value, i.e. the marginal cost of track use. The paper points to the type of data that has to be compiled in order to implement a recent Directive of the European Commission in a consistent way.

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Bibliographic Info

Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 11 (2004)
Issue (Month): 3 (July)
Pages: 277-286

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Handle: RePEc:eee:trapol:v:11:y:2004:i:3:p:277-286

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References

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  1. De Borger, Bruno, 1993. "The Economic Environment and Public Enterprise Behaviour: Belgian Railroads, 1950-86," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 60(240), pages 443-63, November.
  2. Ivaldi, Marc & Mccullough, Gerard, 1999. "Density and Integration Effects on Class I U.S. Freight Railroads," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 93, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Kessides, Ioannis N. & Willig, Robert D., 1995. "Restructuring regulation of the rail industry for the public interest," Policy Research Working Paper Series, The World Bank 1506, The World Bank.
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Cited by:
  1. Heike Link, 2004. "An econometric analysis of motorway renewal costs in Germany," Working Papers, Institute of Transport Economics, University of Muenster 09, Institute of Transport Economics, University of Muenster.
  2. Franklin, Francis & Nemtanu, Florin & Teixeira, Paulo F., 2013. "Rail infrastructure, ITS and access charges," Research in Transportation Economics, Elsevier, Elsevier, vol. 41(1), pages 31-42.
  3. Andersson, Mats, 2007. "Fixed Effects Estimation of Marginal Railway Infrastructure Costs in Sweden," Working Papers, Swedish National Road & Transport Research Institute (VTI) 2007:11, Swedish National Road & Transport Research Institute (VTI).
  4. repec:hal:wpaper:halshs-00574977 is not listed on IDEAS
  5. Andrew Smith & Phill Wheat, 2012. "Estimation of cost inefficiency in panel data models with firm specific and sub-company specific effects," Journal of Productivity Analysis, Springer, Springer, vol. 37(1), pages 27-40, February.
  6. Link, Heike & Götze, Wolfgang & Himanen, Veli, 2009. "Estimating the marginal costs of airport operation using multivariate time series models with correlated error terms," Journal of Air Transport Management, Elsevier, Elsevier, vol. 15(1), pages 41-46.
  7. Andersson, Mats, 2006. "Marginal railway infrastructure cost estimates in the presence of unobserved effects," Working Papers, Swedish National Road & Transport Research Institute (VTI) 2006:6, Swedish National Road & Transport Research Institute (VTI).
  8. Heike Link & Wolfgang Götze & Veli Himanen, 2006. "Estimating the marginal costs of airport operation by using multivariate time series model with correlated error terms," Working Papers, Institute of Transport Economics, University of Muenster 11, Institute of Transport Economics, University of Muenster.
  9. Heike Link, 2003. "Estimates of marginal infrastructure costs for different modes of transport," ERSA conference papers, European Regional Science Association ersa03p75, European Regional Science Association.
  10. Gerhard Munduch & Alexander Pfister & Leopold Sögner & Alfred Stiassny, 2002. "Estimating Marginal Costs for the Austrian Railway System," Department of Economics Working Papers, Vienna University of Economics, Department of Economics wuwp078, Vienna University of Economics, Department of Economics.
  11. Andersson, Mats, 2011. "Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 48, pages 3-23.

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