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Marginal railway track renewal costs: A survival data approach

Listed author(s):
  • Andersson, Mats
  • Björklund, Gunilla
  • Haraldsson, Mattias
Registered author(s):

    In this paper, renewal costs for railway tracks are investigated using survival analysis. The purpose is to derive the effect from increased traffic volumes on rail renewal cycle lengths and to calculate associated marginal costs. A flow sample of censored data containing almost 1300 observations on the Swedish main railway network is used. We specify Weibull regression models, and estimate deterioration elasticities for total tonnage as well as for passenger and freight tonnages separately. Marginal costs are calculated as a change in present values of renewal costs from premature renewal following increased traffic volumes. The marginal cost for total tonnage is estimated to approximately SEK 0.002 per gross ton kilometre.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0965856416000434
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    Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

    Volume (Year): 87 (2016)
    Issue (Month): C ()
    Pages: 68-77

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    Handle: RePEc:eee:transa:v:87:y:2016:i:c:p:68-77
    DOI: 10.1016/j.tra.2016.02.009
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    1. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
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    3. Nilsson, Jan-Eric & Svensson , Kristin & Haraldsson, Mattias, 2015. "Estimating the marginal costs of road wear," Working papers in Transport Economics 2015:5, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Phill Wheat & Andrew S. J. Smith, 2008. "Assessing the Marginal Infrastructure Maintenance Wear and Tear Costs for Britain's Railway Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 189-224, May.
    5. Andersson, Mats & Smith, Andrew & Wikberg, Åsa & Wheat, Phill, 2012. "Estimating the marginal cost of railway track renewals using corner solution models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 954-964.
    6. Johansson, Per & Nilsson, Jan-Eric, 2004. "An economic analysis of track maintenance costs," Transport Policy, Elsevier, vol. 11(3), pages 277-286, July.
    7. Chris Nash & Tom Sansom, 2001. "Pricing European Transport Systems: Recent Developments and Evidence from Case Studies," Journal of Transport Economics and Policy, University of Bath, vol. 35(3), pages 363-380, September.
    8. Chris Nash, 2005. "Rail Infrastructure Charges in Europe," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 259-278, September.
    9. 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.
    10. Nash, Chris, 2010. "European rail reform and passenger services - the next steps," Research in Transportation Economics, Elsevier, vol. 29(1), pages 204-211.
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