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The BCA of HSR Should the government invest in high speed rail infrastructure?

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  • De Rus, Ginés

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 exam 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 line is built, significant time savings, high average willingness to pay of potential users, the release of capacity in the conventional rail network and airports. On the contrary, net environmental benefits seem to be insignificant as to influence 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://documentos.fedea.net/pubs/dt/2011/dt-2011-12.pdf
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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2011-12.

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Date of creation: Nov 2011
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Handle: RePEc:fda:fdaddt:2011-12

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  1. Zinovyeva, Natalia & Bagues, Manuel F., 2011. "Does Gender Matter for Academic Promotion? Evidence from a Randomized Natural Experiment," IZA Discussion Papers 5537, Institute for the Study of Labor (IZA).
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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. 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.
  2. 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.

Lists

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  1. High-speed rail in Wikipedia (English)
  2. User:FlyAkwa/hsr in Wikipedia (English)

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