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When are subsidies to trans-European network projects justified?

Author

Listed:
  • 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. Bruno De Borger & Stef Proost & Kurt Van Dender, 2008. "Private Port Pricing and Public Investment in Port and Hinterland Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 527-561, September.
    2. Borger Bruno De & Dunkerley Fay & Proost Stef, 2008. "The Interaction between Tolls and Capacity Investment in Serial and Parallel Transport Networks," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-23, March.
    3. 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.
    4. De Borger, B. & Dunkerley, F. & Proost, S., 2007. "Strategic investment and pricing decisions in a congested transport corridor," Journal of Urban Economics, Elsevier, vol. 62(2), pages 294-316, September.
    5. Knight, Brian, 2004. "Parochial interests and the centralized provision of local public goods: evidence from congressional voting on transportation projects," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 845-866, March.
    6. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Inefficiencies and scale economies of European airport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(5), pages 341-361, September.
    7. Richard Arnott & Marvin Kraus, 1995. "Self-Financing of Congestible Facilities in a Growing Economy," Boston College Working Papers in Economics 304., Boston College Department of Economics.
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    Cited by:

    1. repec:spr:lsprsc:v:10:y:2017:i:1:d:10.1007_s12076-016-0175-5 is not listed on IDEAS
    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.
    3. Liedtke, Gernot & Carrillo Murillo, David Guillermo, 2012. "Assessment of policy strategies to develop intermodal services: The case of inland terminals in Germany," Transport Policy, Elsevier, vol. 24(C), pages 168-178.
    4. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.
    5. repec:eee:ecotra:v:13:y:2018:i:c:p:36-47 is not listed on IDEAS
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Jan Anne Annema, 2013. "The use of CBA in decision-making on mega-projects: empirical evidence," Chapters,in: International Handbook on Mega-Projects, chapter 13, pages 291-312 Edward Elgar Publishing.
    11. 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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