Fixed Effects Estimation of Marginal Railway Infrastructure Costs in Sweden

Mats Andersson ()
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Mats Andersson: VTI, Postal: Dept. of Transport Economics, P.O. Box 760, SE-781 27 Borlänge, Sweden

No 2007:11, Working Papers from Swedish National Road & Transport Research Institute (VTI)

Abstract: New railway legislation in Sweden has increased the need for transparent access charges on the Swedish railway network. We estimate cost functions for infrastructure operation, maintenance and renewal in the Swedish national railway network, using unobserved effects models and calculate marginal costs for railway infrastructure wear and tear. We find evidence of unobserved fixed effects at a track section level for infrastructure operation and maintenance costs. The estimated weighted average marginal infrastructure operation cost is SEK 0.12 per train kilometre and the estimated marginal maintenance cost is SEK 0.0073 per gross tonne kilometre. Altogether, the results indicate that the current charge for railway infrastructure wear and tear in Sweden is below marginal cost.

Keywords: Railway; Infrastructure operation; Maintenance; Renewal; Marginal costs; Fixed effects (search for similar items in EconPapers)
JEL-codes: C23 H54 L92 R48 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-04-25
New Economics Papers: this item is included in nep-eff and nep-geo
Note: This paper replaces 2006:6.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vtiwps:2007_011

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