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Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden

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  • Andersson, Mats

    () (Swedish National Road and Transport Research Institute)

Abstract

We analyse maintenance cost data for Swedish railway infrastructure in relation to traffic volumes and network characteristics, and separate the cost impact from passenger and freight trains. Lines with mixed passenger and freight traffic, and dedicated freight lines are analysed separately using both log-linear and Box-Cox regression models. We find that for mixed lines, the Box-Cox specification is preferred, while a log-linear model is chosen in the case of dedicated freight lines. The cost elasticity with respect to output is found to be higher for passenger trains than for freight trains. From a marginal cost pricing perspective, freight trains are currently over-charged, while passenger trains are under-charged.

Suggested Citation

  • Andersson, Mats, 2009. "Marginal cost of railway infrastructure wear and tear for freight and passenger trains in Sweden," Working Papers 2010:5, Swedish National Road & Transport Research Institute (VTI).
  • Handle: RePEc:hhs:vtiwps:2010_005
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    File URL: http://www.transportportal.se/SWoPEc/MC_Rail_Infra_Wear_and_Tear.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Railway; Maintenance; Box-Cox; Marginal Cost;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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