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CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2016:27:
Estimating the marginal maintenance cost of rail infrastructure usage in Sweden: does more data make a difference?

Kristofer Odolinski () and Jan-Eric Nilsson ()

Abstract: One cornerstone of EU’s railway policy is that track user charges should be based on marginal costs for infrastructure use. This paper updates knowledge about the marginal cost of maintaining Sweden’s railway network. Using an extended panel dataset, now comprising 16 years, we corroborate previous results using a static model framework. However, the results from the dynamic model show that an increase in maintenance cost during one year increases costs in the next year, which is contrasting previous estimates on a shorter panel dataset. We conclude that more data made a difference in a dynamic setting, but the estimated cost elasticities are rather robust in a European context.

Keywords: Marginal cost; Rail infrastructure; Maintenance; Access charging; Dynamic model; (follow links to similar papers)

JEL-Codes: L92; R48; (follow links to similar papers)

33 pages, December 9, 2016

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This paper is published as:
Odolinski, Kristofer and Jan-Eric Nilsson, (2017), 'Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?', Economics of Transportation, Vol. 10, June, pages 8-17



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