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

Author

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  • Haraldsson, Mattias

    () (VTI)

Abstract

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
    as

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    File URL: http://www.transportportal.se/SWoPEc/Swopec%20kostnadsfunktioner.pdf
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    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

    Keywords

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

    JEL classification:

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

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