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An economic analysis of track maintenance costs

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  • Johansson, Per
  • Nilsson, Jan-Eric

Abstract

The costs for maintaining different track units are analyzed using Swedish and Finnish railway data for the years 1994-1996 and 1997-1999, respectively. To derive insights on the logic of spending on track maintenance, the analysis is based on few a priori assumptions about underlying structures. We provide indications of scale economies in track maintenance with respect to traffic load and calculate a policy-relevant derivative value, i.e. the marginal cost of track use. The paper points to the type of data that has to be compiled in order to implement a recent Directive of the European Commission in a consistent way.

Suggested Citation

  • Johansson, Per & Nilsson, Jan-Eric, 2004. "An economic analysis of track maintenance costs," Transport Policy, Elsevier, vol. 11(3), pages 277-286, July.
    • Handle: RePEc:eee:trapol:v:11:y:2004:i:3:p:277-286
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    References listed on IDEAS

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    1. Kessides, Ioannis N. & Willig, Robert D., 1995. "Restructuring regulation of the rail industry for the public interest," Policy Research Working Paper Series 1506, The World Bank.
    2. Ivaldi, M & McCullough, G J, 2001. "Density and Integration Effects on Class I U.S. Freight Railroads," Journal of Regulatory Economics, Springer, vol. 19(2), pages 161-182, March.
    3. De Borger, Bruno, 1993. "The Economic Environment and Public Enterprise Behaviour: Belgian Railroads, 1950-86," Economica, London School of Economics and Political Science, vol. 60(240), pages 443-463, November.
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