New railway legislation in Sweden has increased the need for transparent access charges on the Swedish railway network. We estimate cost functions for infrastructure operation, maintenance and renewal in the Swedish national railway network, using unobserved effects models and calculate marginal costs for railway infrastructure wear and tear. We find evidence of unobserved fixed effects at a track section level for infrastructure operation and maintenance costs. The estimated weighted average marginal infrastructure operation cost is SEK 0.12 per train kilometre and the estimated marginal maintenance cost is SEK 0.0073 per gross tonne kilometre. Altogether, the results indicate that the current charge for railway infrastructure wear and tear in Sweden is below marginal cost.
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Paper provided by Swedish National Road & Transport Research Institute (VTI) in its series Working Papers with number
2007:11.
Length: 28 pages Date of creation: 25 Apr 2007 Date of revision: Handle: RePEc:hhs:vtiwps:2007_011
Note: This paper replaces 2006:6. Contact details of provider: 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 Email: Web page: http://www.vti.se/tek More information through EDIRC
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Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies
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