Working Papers, Swedish National Road & Transport Research Institute (VTI)
No 2007:7:
Marginal costs for road maintenance and operation - a cost function approach
Mattias Haraldsson ()
Abstract: Using observational data covering the whole Swedish
national road network for the period 1998-2002, this paper estimates a set
of maintenance and operation cost functions. It is found that costs for all
operation and maintenance measures increase with traffic intensity, with
two exceptions; total operation and winter operation measures are fixed
cost activities. All other operation and maintenance measures have short
run elasticities in the range 0.25-0.60. The impact of an additional
vehicle is generally manifested in extra maintenance and operation costs,
not only while the vehicle is using the road, but later on as well. Point
estimates of long run cost elasticities are higher than one in general.
Keywords: Transport economics; marginal cost; road maintenance; road operation; (follow links to similar papers)
JEL-Codes: R40; (follow links to similar papers)
28 pages, September 3, 2007
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