An econometric analysis of motorway renewal costs in Germany

Heike Link

No 9, Working Papers from Institute of Transport Economics, University of Muenster

Abstract: This paper analyses the cost bahaviour of motorway renewal costs with the aim to derive an estimate of marginal infrastructure costs per vehicle-km of trucks as part of optimal road user charges. The analysis is based on cross-sectional data of motorway renewal costs and traffic volume per motorway section in Germany during the period 1980-1999. The translog model estimated in this paper includes the factor input prices for labour, material and capital, the average annual daily traffic volume of trucks and passenger cars with the respective second-order terms. and a set of dummy variables for regions (the German lŠnder) as well as for the type of material used for renewal as the most explanatory variables. In contrast to this, we could not find any significant influence of the age of motorway sections, the past renewal expenditures and the climate conditions measured as days with temperature fluctuations around zero. The cost elasticity, i.e. the relationship between marginal and average costs found in this analysis ranges from 0.05 up to 1.17 with a digressive increase of marginal costs.

Keywords: Cost functions; motorway renewal costs; marginal costs; infrastructure charging; road transport (search for similar items in EconPapers)
JEL-codes: C31 L92 R48 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2004-07
New Economics Papers: this item is included in nep-eff and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.wiwi.uni-muenster.de/ivm/sites/ivm/fil ... kussionspapier09.pdf First version, 2004 (application/pdf)

Related works:
Journal Article: An econometric analysis of motorway renewal costs in Germany (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:mut:wpaper:09

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