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An econometric analysis of motorway renewal costs in Germany

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  • Heike Link

    ()
    (German Institute for Economic Research, Berlin)

Abstract

This paper analyses the cost bahaviour of motorway renewal costs with the aim to derive an estimate of marginal infrastructure costs per vehicle-km of trucks as part of optimal road user charges. The analysis is based on cross-sectional data of motorway renewal costs and traffic volume per motorway section in Germany during the period 1980-1999. The translog model estimated in this paper includes the factor input prices for labour, material and capital, the average annual daily traffic volume of trucks and passenger cars with the respective second-order terms. and a set of dummy variables for regions (the German länder) as well as for the type of material used for renewal as the most explanatory variables. In contrast to this, we could not find any significant influence of the age of motorway sections, the past renewal expenditures and the climate conditions measured as days with temperature fluctuations around zero. The cost elasticity, i.e. the relationship between marginal and average costs found in this analysis ranges from 0.05 up to 1.17 with a digressive increase of marginal costs.

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File URL: http://www.wiwi.uni-muenster.de/ivm/materialien/forschen/veroeffentlichungen/diskussionspapier9.pdf
File Function: First version, 2004
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Bibliographic Info

Paper provided by Institute of Transport Economics, University of Muenster in its series Working Papers with number 09.

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Length: 20 pages
Date of creation: Jul 2004
Date of revision:
Handle: RePEc:mut:wpaper:09

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Keywords: Cost functions; motorway renewal costs; marginal costs; infrastructure charging; road transport;

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Cited by:
  1. Andersson, Mats, 2011. "Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 48, pages 3-23.
  2. Heike Link & Wolfgang Götze & Veli Himanen, 2006. "Estimating the marginal costs of airport operation by using multivariate time series model with correlated error terms," Working Papers 11, Institute of Transport Economics, University of Muenster.
  3. Paul J.J. Welfens, 2006. "Grundlagen rationaler Transportpolitik bei Integration," EIIW Discussion paper disbei144, Universitätsbibliothek Wuppertal, University Library.
  4. Ozbay, Kaan & Bartin, Bekir & Yanmaz-Tuzel, Ozlem & Berechman, Joseph, 2007. "Alternative methods for estimating full marginal costs of highway transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 768-786, October.
  5. Link, Heike & Götze, Wolfgang & Himanen, Veli, 2009. "Estimating the marginal costs of airport operation using multivariate time series models with correlated error terms," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 41-46.
  6. Meunier, David & Quinet, Emile, 2010. "Tips and Pitfalls in PPP design," Research in Transportation Economics, Elsevier, vol. 30(1), pages 126-138.
  7. Luigi Benfratello & Alberto Iozzi & Paola Valbonesi, 2009. "Technology and incentive regulation in the Italian motorways industry," Journal of Regulatory Economics, Springer, vol. 35(2), pages 201-221, April.

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