IDEAS home Printed from
   My bibliography  Save this paper

Marginal costs for road maintenance and operation - a cost function approach


  • Haraldsson, Mattias

    () (VTI)


Using observational data covering the whole Swedish national road network for the period 1998-2002, this paper estimates a set of maintenance and operation cost functions. It is found that costs for all operation and maintenance measures increase with traffic intensity, with two exceptions; total operation and winter operation measures are fixed cost activities. All other operation and maintenance measures have short run elasticities in the range 0.25-0.60. The impact of an additional vehicle is generally manifested in extra maintenance and operation costs, not only while the vehicle is using the road, but later on as well. Point estimates of long run cost elasticities are higher than one in general.

Suggested Citation

  • Haraldsson, Mattias, 2007. "Marginal costs for road maintenance and operation - a cost function approach," Working Papers 2007:7, Swedish National Road & Transport Research Institute (VTI).
  • Handle: RePEc:hhs:vtiwps:2007_007

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Lundborg, Petter & Lindgren, Bjorn, 2002. "Risk Perceptions and Alcohol Consumption among Young People," Journal of Risk and Uncertainty, Springer, vol. 25(2), pages 165-183, September.
    2. Lundborg, Petter, 2006. "Having the wrong friends? Peer effects in adolescent substance use," Journal of Health Economics, Elsevier, vol. 25(2), pages 214-233, March.
    3. Hersch, Joni, 1998. "Compensating Differentials for Gender-Specific Job Injury Risks," American Economic Review, American Economic Association, vol. 88(3), pages 598-627, June.
    4. Hersch, Joni, 2000. "Gender, Income Levels, and the Demand for Cigarettes," Journal of Risk and Uncertainty, Springer, vol. 21(2-3), pages 263-282, November.
    5. Fred C. Pampel, 2002. "Cigarette Use and the Narrowing Sex Differential in Mortality," Population and Development Review, The Population Council, Inc., vol. 28(1), pages 77-104.
    6. Petter Lundborg, 2007. "Smoking, information sources, and risk perceptions—New results on Swedish data," Journal of Risk and Uncertainty, Springer, vol. 34(3), pages 217-240, June.
    7. Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-630, October.
    8. Andersson, Henrik & Lundborg, Petter, 2006. "Perception of Own Death Risk: An Analysis of Road-Traffic and Overall Mortality Risks," Working Papers 2006:1, Swedish National Road & Transport Research Institute (VTI).
    9. Orphanides, Athanasios & Zervos, David, 1995. "Rational Addiction with Learning and Regret," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 739-758, August.
    10. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
    11. Petter Lundborg & Bj–rn Lindgren, 2004. "Do They Know What They are Doing? Risk Perceptions and Smoking Behaviour Among Swedish Teenagers," Journal of Risk and Uncertainty, Springer, vol. 28(3), pages 261-286, May.
    12. Steven Yen, 2005. "Zero observations and gender differences in cigarette consumption," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1839-1849.
    13. Viscusi, W Kip, 1990. "Do Smokers Underestimate Risks?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1253-1269, December.
    14. Antoñanzas, Fernando & Viscusi, W. Kip & Rovira, Joan & Braña, Francisco J. & Portillo, Fabiola & Carvalho, Iirineu, 2000. "Smoking Risks in Spain: Part I--Perception of Risks to the Smoker," Journal of Risk and Uncertainty, Springer, vol. 21(2-3), pages 161-186, November.
    15. Viscusi, W Kip, 1991. "Age Variations in Risk Perceptions and Smoking Decisions," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 577-588, November.
    16. repec:aph:ajpbhl:1997:87:5:755-759_9 is not listed on IDEAS
    17. repec:aph:ajpbhl:1995:85:2:223-230_9 is not listed on IDEAS
    18. Gruber, Jonathan & Frakes, Michael, 2006. "Does falling smoking lead to rising obesity?," Journal of Health Economics, Elsevier, vol. 25(2), pages 183-197, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Anani, Shadi B. & Madanat, Samer M, 2010. "Estimation of Highway Maintenance Marginal Cost under Multiple Maintenance Activities," University of California Transportation Center, Working Papers qt0fh705xg, University of California Transportation Center.

    More about this item


    Transport economics; marginal cost; road maintenance; road operation;

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:vtiwps:2007_007. 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: (Mats Berggren). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

    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.