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Marginal costs for road maintenance and operation - a cost function approach

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  • Haraldsson, Mattias

    () (VTI)

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    Abstract

    Using observational data covering the whole Swedish national road network for the period 1998-2002, this paper estimates a set of maintenance and operation cost functions. It is found that costs for all operation and maintenance measures increase with traffic intensity, with two exceptions; total operation and winter operation measures are fixed cost activities. All other operation and maintenance measures have short run elasticities in the range 0.25-0.60. The impact of an additional vehicle is generally manifested in extra maintenance and operation costs, not only while the vehicle is using the road, but later on as well. Point estimates of long run cost elasticities are higher than one in general.

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    File URL: http://www.transguide.org/SWoPEc/Swopec%20kostnadsfunktioner.pdf
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    Bibliographic Info

    Paper provided by Swedish National Road & Transport Research Institute (VTI) in its series Working Papers with number 2007:7.

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    Length: 28 pages
    Date of creation: 03 Sep 2007
    Date of revision:
    Handle: RePEc:hhs:vtiwps:2007_007

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    Postal: VTI, Transport Economics, P.O. Box 6056, SE-171 06 Solna, Sweden
    Phone: +46-13-20 40 00
    Fax: +46-13-14 14 36
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    Web page: http://www.vti.se/tek
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    Related research

    Keywords: Transport economics; marginal cost; road maintenance; road operation;

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    Cited by:
    1. Anani, Shadi B. & Madanat, Samer M, 2010. "Estimation of Highway Maintenance Marginal Cost under Multiple Maintenance Activities," University of California Transportation Center, Working Papers qt0fh705xg, University of California Transportation Center.

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