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When are subsidies to trans-European network projects justified?

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  • Proost, Stef
  • Dunkerley, Fay
  • Borger, Bruno De
  • Gühneman, Astrid
  • Koskenoja, Pia
  • Mackie, Peter
  • Loo, Saskia Van der

Abstract

The trans-European transport network (TEN-T) encompasses the major planned transport infrastructure in Europe, ranging from high speed rail to port infrastructure. Projects in this category are considered priority projects and receive European subsidies; but these have been insufficient to get these projects off the ground. This paper addresses two research questions. First, it sketches the basic economics of cross-boundary infrastructure projects: what pricing and investment policies can we expect, what is the role of through traffic and high fixed costs of infrastructure? Second, it examines briefly what lessons the EU could draw from the experience of other existing federal funding institutions like the US and Germany. These ideas are used to propose a new subsidy scheme for the TEN-T projects.

Suggested Citation

  • Proost, Stef & Dunkerley, Fay & Borger, Bruno De & Gühneman, Astrid & Koskenoja, Pia & Mackie, Peter & Loo, Saskia Van der, 2011. "When are subsidies to trans-European network projects justified?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(3), pages 161-170, March.
    • Handle: RePEc:eee:transa:v:45:y:2011:i:3:p:161-170
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    References listed on IDEAS

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    1. De Borger, Bruno & Dunkerley, Fay & Proost, Stef, 2009. "Capacity cost structure, welfare and cost recovery: Are transport infrastructures with high fixed costs a handicap?," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 506-521, June.
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    Cited by:

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    2. Bottasso, Anna & Conti, Maurizio & Ferrari, Claudio & Tei, Alessio, 2014. "Ports and regional development: A spatial analysis on a panel of European regions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 44-55.
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    6. Feder, Christophe, 2018. "Decentralization and spillovers: A new role for transportation infrastructure," Economics of Transportation, Elsevier, vol. 13(C), pages 36-47.
    7. Goldmann, Kathrin & Wessel, Jan, 2020. "TEN-T corridors – Stairway to heaven or highway to hell?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 240-258.
    8. Monios, Jason & Lambert, Bruce, 2013. "The Heartland Intermodal Corridor: public private partnerships and the transformation of institutional settings," Journal of Transport Geography, Elsevier, vol. 27(C), pages 36-45.
    9. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    10. Nikolaos Thomopoulos & Susan Grant-Muller, 2013. "Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach," Transportation, Springer, vol. 40(2), pages 315-345, February.
    11. Monios, Jason & Wilmsmeier, Gordon, 2012. "Giving a direction to port regionalisation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1551-1561.
    12. Sciara, Gian-Claudia, 2012. "Financing congressional earmarks: Implications for transport policy and planning," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1328-1342.
    13. Jan Anne Annema, 2013. "The use of CBA in decision-making on mega-projects: empirical evidence," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 13, pages 291-312, Edward Elgar Publishing.
    14. Thomopoulos, Nikolaos & Grant-Muller, Susan, 2013. "Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach," LSE Research Online Documents on Economics 60073, London School of Economics and Political Science, LSE Library.

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