Scandinavian Working Papers in Economics

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

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 ()
Additional contact information
Kristofer Odolinski: VTI, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Jan-Eric Nilsson: VTI, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

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

JEL-codes: L92; R48

33 pages, December 9, 2016

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CTS2016-27.pdf PDF-file 

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