Scandinavian Working Papers in Economics

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

No 2018:2: The efficient use of infrastructure – is Sweden pricing traffic on its roads, railways, waters and airways at marginal costs?

Jan-Eric Nilsson Nilsson, Gunnar Isacsson, Mattias Haraldsson, Lena Nerhagen, Kristofer Odolinski, Jan-Erik Swärdh, Inge Vierth, Sherzod Yarmukhamedov and Johannes Österström
Additional contact information
Jan-Eric Nilsson Nilsson: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Gunnar Isacsson: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Mattias Haraldsson: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Lena Nerhagen: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Kristofer Odolinski: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Jan-Erik Swärdh: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Inge Vierth: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Sherzod Yarmukhamedov: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Johannes Österström: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

Abstract: This review summarizes recent information about the marginal costs for using Sweden’s infrastructure and the relationship between the sum of marginal costs and charges for each mode. It is demonstrated that the tax on petrol used by private cars is higher than the marginal costs for emissions, accident risk and road wear and tear. The diesel tax is, on the other hand, not sufficient for internalization of heavy vehicles’ externalities. Neither trains nor aircraft or ships pay for their marginal costs. For railways, this confirms previous observations that Swedish track user charges are low in an international context. Except for a low level of charges, several examples are given of the strong motives for differentiation of charges in time and geography. The rapid technical development makes the cost motive for not differentiating the charges increasingly irrelevant.

Keywords: Marginal cost pricing; roads; railways; waterway infrastructure; air infrastructure

JEL-codes: R10; R40; R41; R48

32 pages, February 19, 2018

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