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Estimating the impact of traffic on rail infrastructure maintenance costs: The importance of axle loads

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Abstract

In this paper, we estimate the impact of axle loads on rail infrastructure maintenance costs. The results show that cost elasticities with respect to traffic increase with axle load. Using these elasticities, we calculate marginal costs for traffic that are differentiated with respect to the trains' average tonnage per axle. The results are relevant when setting track access charges in Europe as well as for railway cost studies in general, considering that the empirical evidence in this paper gives support to the engineering perspective — that is, axle loads are important to consider when assessing the damage caused by traffic.

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  • Odolinski, Kristofer, 2016. "Estimating the impact of traffic on rail infrastructure maintenance costs: The importance of axle loads," Working papers in Transport Economics 2016:21, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 14 Nov 2018.
    • Handle: RePEc:hhs:ctswps:2016_021
    Note: Published in Journal of Transport Economics and Policy (JTEP), Volume 53, Number 3, July 2019, pp. 334-350.
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    References listed on IDEAS

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    1. Marc Gaudry & Emile Quinet, 2009. "Track wear-and-tear cost by traffic class: Functional form, zero output levels and marginal cost pricing recovery on the French rail network," Working Papers halshs-00574977, HAL.
    2. Kristofer Odolinski & Andrew S. J. Smith, 2016. "Assessing the Cost Impact of Competitive Tendering in Rail Infrastructure Maintenance Services: Evidence from the Swedish Reforms (1999 to 2011)," Journal of Transport Economics and Policy, University of Bath, vol. 50(1), pages 93-112, January.
    3. Phill Wheat & Andrew S. J. Smith, 2008. "Assessing the Marginal Infrastructure Maintenance Wear and Tear Costs for Britain's Railway Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 189-224, May.
    4. Martland, Carl D., 2013. "Introduction of Heavy Axle Loads by the North American Rail Industry," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 52(2).
    5. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    6. Johansson, Per & Nilsson, Jan-Eric, 2004. "An economic analysis of track maintenance costs," Transport Policy, Elsevier, vol. 11(3), pages 277-286, July.
    7. Martland, Carl, 2013. "Introduction Of Heavy Axle Loads By The North American Rail Industry, 1990 To 2012," 54th Annual Transportation Research Forum, Annapolis, Maryland, March 21-23, 2013 206951, Transportation Research Forum.
    8. Marc Gaudry & Emile Quinet, 2009. "Track wear-and-tear cost by traffic class: Functional form, zero output levels and marginal cost pricing recovery on the French rail network," PSE Working Papers halshs-00574977, HAL.
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    More about this item

    Keywords

    maintenance; rail infrastructure; axle load; marginal cost; track access charge; top-down approach;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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