IDEAS home Printed from https://ideas.repec.org/p/hhs/trnspr/2020_004.html
   My bibliography  Save this paper

When should infrastructure assets be renewed?: the economic impact of cumulative tonnes on railway infrastructure

Author

Listed:

Abstract

This paper provides empirical evidence on the optimal timing of rail infrastructure renewal. Using an econometric approach on data from the Swedish railway network, we establish a relationship between cumulative tonnes and maintenance costs, as well as between cumulative tonnes and infrastructure failures that cause train delays. Together with average values on delay hours per failure and assumptions on passengers per train, we perform example calculations on the optimal timing for a track renewal. This timing will depend on the case considered, such as whether traffic intensity is high or low. Empirical evidence on the relationship between line capacity utilisation and delay time can provide more robust estimates for the different cases considered by an infrastructure manager. Still, the results in this paper is a significant step towards a usable cost-benefit analysis model for the timing of rail infrastructure renewals.

Suggested Citation

  • Nilsson, Jan-Eric & Odolinski, Kristofer, 2020. "When should infrastructure assets be renewed?: the economic impact of cumulative tonnes on railway infrastructure," Papers 2020:4, Research Programme in Transport Economics.
  • Handle: RePEc:hhs:trnspr:2020_004
    as

    Download full text from publisher

    File URL: https://www.transportportal.se/transportekonomi-org/WP-2020-4.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Marc Gaudry & Bernard Lapeyre & Emile Quinet, 2016. "Infrastructure maintenance, regeneration and service quality economics: A rail example," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01380072, HAL.
    3. Sathaye, Nakul & Madanat, Samer, 2011. "A bottom-up solution for the multi-facility optimal pavement resurfacing problem," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 1004-1017, August.
    4. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    5. Odolinski, Kristofer & Nilsson, Jan-Eric, 2017. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Economics of Transportation, Elsevier, vol. 10(C), pages 8-17.
    6. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    7. Odolinski, Kristofer & Wheat, Phill, 2018. "Dynamics in rail infrastructure provision: Maintenance and renewal costs in Sweden," Economics of Transportation, Elsevier, vol. 14(C), pages 21-30.
    8. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    9. Podofillini, Luca & Zio, Enrico & Vatn, Jørn, 2006. "Risk-informed optimisation of railway tracks inspection and maintenance procedures," Reliability Engineering and System Safety, Elsevier, vol. 91(1), pages 20-35.
    10. Odolinski, Kristofer & Nilsson, Jan-Eric, 2016. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Working papers in Transport Economics 2016:27, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 13 May 2017.
    11. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    12. Odolinski, Kristofer, 2019. "The impact of cumulative tonnes on track failures: An empirical approach," Papers 2019:1, Research Programme in Transport Economics.
    13. Gaudry, Marc & Lapeyre, Bernard & Quinet, Émile, 2016. "Infrastructure maintenance, regeneration and service quality economics: A rail example," Transportation Research Part B: Methodological, Elsevier, vol. 86(C), pages 181-210.
    14. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    15. Allan P. O. Williams, 2006. "Impact of Strategies," Palgrave Macmillan Books, in: The Rise of Cass Business School, chapter 13, pages 167-181, Palgrave Macmillan.
    16. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
    17. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    18. Odolinski, Kristofer & Wheat, Phillip, 2016. "Dynamics in rail infrastructure provision: maintenance and renewal costs in Sweden," Working papers in Transport Economics 2016:23, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 11 Dec 2017.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Odolinski, Kristofer & Boysen, Hans E., 2018. "Railway line capacity utilisation and its impact on maintenance costs," Working papers in Transport Economics 2018:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 30 Oct 2018.
    2. Odolinski, Kristofer & Wheat, Phill, 2018. "Dynamics in rail infrastructure provision: Maintenance and renewal costs in Sweden," Economics of Transportation, Elsevier, vol. 14(C), pages 21-30.
    3. Odolinski, Kristofer & Nilsson, Jan-Eric, 2017. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Economics of Transportation, Elsevier, vol. 10(C), pages 8-17.
    4. Sabien Dobbelaere & Jacques Mairesse, 2010. "Comparing Micro-evidence on Rent Sharing from Three Different Approaches," NBER Working Papers 16220, National Bureau of Economic Research, Inc.
    5. Schünemann, Johannes & Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus, 2018. "Health and Economic Growth: Reconciling the Micro and Macro Evidence," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181554, Verein für Socialpolitik / German Economic Association.
    6. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    7. Dong, Xiao-yuan & Pandey, Manish, 2012. "Gender and labor retrenchment in Chinese state owned enterprises: Investigation using firm-level panel data," China Economic Review, Elsevier, vol. 23(2), pages 385-395.
    8. Mateo Zokalj, 2016. "The impact of population aging on public finance in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 40(4), pages 383-412.
    9. Michel Dumont, 2015. "Working Paper 05-15 - Evaluation of federal tax incentives for private R&D in Belgium: An update," Working Papers 1505, Federal Planning Bureau, Belgium.
    10. Fufa, Tolina & Kim, Jaebeom, 2018. "Stock markets, banks, and economic growth: Evidence from more homogeneous panels," Research in International Business and Finance, Elsevier, vol. 44(C), pages 504-517.
    11. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    12. Dobbelaere, Sabien & Kiyota, Kozo & Mairesse, Jacques, 2015. "Product and labor market imperfections and scale economies: Micro-evidence on France, Japan and the Netherlands," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 290-322.
    13. Alan Piper, 2018. "Adult life satisfaction largely (though not wholly) contemporaneous," Discussion Papers 028, Europa-Universität Flensburg, International Institute of Management.
    14. Castro, Vítor & Martins, Rodrigo, 2021. "Government ideology and economic freedom," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 73-91.
    15. W.N.W Azman‐Saini & Peter Smith, 2011. "Finance And Growth: New Evidence On The Role Of Insurance," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 111-127, June.
    16. Sigmund, Michael & Ferstl, Robert, 2021. "Panel vector autoregression in R with the package panelvar," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 693-720.
    17. Jia, Junxue & Guo, Qingwang & Zhang, Jing, 2014. "Fiscal decentralization and local expenditure policy in China," China Economic Review, Elsevier, vol. 28(C), pages 107-122.
    18. Chang, Roberto & Kaltani, Linda & Loayza, Norman V., 2009. "Openness can be good for growth: The role of policy complementarities," Journal of Development Economics, Elsevier, vol. 90(1), pages 33-49, September.
    19. Piper, Alan T., 2018. "Adult life satisfaction: largely (though not wholly) contemporaneous? A System General Method of Moments dynamic panel analysis," MPRA Paper 85601, University Library of Munich, Germany.
    20. Youssef, Ahmed & Abonazel, Mohamed R., 2015. "Alternative GMM Estimators for First-order Autoregressive Panel Model: An Improving Efficiency Approach," MPRA Paper 68674, University Library of Munich, Germany.

    More about this item

    Keywords

    Railway; Infrastructure; Optimization; Renewal; Maintenance; Train Delays;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:trnspr:2020_004. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/tevtise.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mats Berggren (email available below). General contact details of provider: https://edirc.repec.org/data/tevtise.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.