Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden
AbstractWe analyse maintenance cost data for Swedish railway infrastructure in relation to traffic volumes and network characteristics, and separate the cost impact from passenger and freight trains. Lines with mixed passenger and freight traffic, and dedicated freight lines are analysed separately using both log-linear and Box-Cox regression models. We find that for mixed lines, the Box-Cox specification is preferred, while a log-linear model is chosen in the case of dedicated freight lines. The cost elasticity with respect to output is found to be higher for passenger trains than for freight trains. From a marginal cost pricing perspective, freight trains are currently over-charged, while passenger trains are under-charged.
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Bibliographic InfoPaper provided by Swedish National Road & Transport Research Institute (VTI) in its series Working Papers with number 2010:5.
Length: 18 pages
Date of creation: 30 Nov 2009
Date of revision:
Publication status: Forthcoming as Andersson, Mats, 'Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden' in Trasporti Europei, 2011.
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
Web page: http://www.vti.se/tek
More information through EDIRC
Railway; Maintenance; Box-Cox; Marginal Cost;
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-13 (All new papers)
- NEP-MIC-2010-02-13 (Microeconomics)
- NEP-URE-2010-02-13 (Urban & Real Estate Economics)
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