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Schemes and levels of state aid to rail industry in Europe: evidences from a cross-country comparison

Author

Listed:
  • Arrigo, Ugo
  • Di Foggia, Giacomo

Abstract

The purpose of this paper is to illustrate the evolution of both schemes and levels of public support to railway sector in selected European countries. Although prior research sheds some light on this topic, more information is required to clarify national obligations under European railway liberalisation law regarding incentives toward railway undertakings. Focusing on Italy, besides the reduction of capital grants, justified by the completion of the highspeed line TurinMilanNaples, this paper finds an increasing support to the service operators and in the meantime a reduction of subsidies aimed at financing network operations. This shift of resources may undermine competition. The findings of this study help to fill the gap in estimating State aid to European railways.

Suggested Citation

  • Arrigo, Ugo & Di Foggia, Giacomo, 2013. "Schemes and levels of state aid to rail industry in Europe: evidences from a cross-country comparison," MPRA Paper 67829, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:67829
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    File URL: https://mpra.ub.uni-muenchen.de/67829/9/MPRA_paper_67829.pdf
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    References listed on IDEAS

    as
    1. Christian Growitsch & Heike Wetzel, 2006. "Economies of Scope in European Railways: An Efficiency Analysis," IWH Discussion Papers 5, Halle Institute for Economic Research.
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    3. Beria, Paolo & Quinet, Emile & de Rus, Gines & Schulz, Carola, 2012. "A comparison of rail liberalisation levels across four European countries," Research in Transportation Economics, Elsevier, vol. 36(1), pages 110-120.
    4. Chris Nash & Jan-Eric Nilsson & Heike Link, 2013. "Comparing Three Models for Introduction of Competition into Railways," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 191-206, May.
    5. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.
    6. Arrigo, Ugo & Di Foggia, Giacomo, 2013. "Competition And Pricing Of Essential Inputs: The Case Ofaccess Charges For The Use Of The Italian Rail Infrastructure," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 4(3), pages 295-308.
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    8. Guido Friebel & Marc Ivaldi & Catherine Vibes, 2010. "Railway (De)Regulation: A European Efficiency Comparison," Economica, London School of Economics and Political Science, vol. 77(305), pages 77-91, January.
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    11. Bulcsu Szekely, 2009. "Liberalisation of the railway industry in Europe: toward a sustainable system through process view," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 1(2), pages 167-185.
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    13. Jan-Eric Nilsson & Roger Pyddoke & Staffan Hultén & Gunnar Alexandersson, 2013. "The Liberalisation of Railway Passenger Transport in Sweden," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 307-312, May.
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    Citations

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    Cited by:

    1. Laurino, Antonio & Ramella, Francesco & Beria, Paolo, 2015. "The economic regulation of railway networks: A worldwide survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 202-212.
    2. Giacomo Di Foggia & Ugo Arrigo, 2015. "The scope of public organisations with productive functions: insights from the inefficiency of Italian local public transport," European Journal of Government and Economics, Europa Grande, vol. 4(2), pages 134-154, December.

    More about this item

    Keywords

    railways; deregulation; state aid; public finance; govvernment expenditure; transport economics;

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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