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The impact of optimal rail access charges on frequencies and fares
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. VTI Swedish Natl Rd & Transport Res Inst, Linkoping, Sweden.ORCID iD: 0000-0001-9235-0232
VTI Swedish Natl Rd & Transport Res Inst, Linkoping, Sweden.
VTI Swedish Natl Rd & Transport Res Inst, Linkoping, Sweden.
2021 (English)In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 26-27, article id 100217Article in journal (Refereed) Published
Abstract [en]

Sweden has been a front runner in vertical separation. We use data from the business long-distance corridor in Sweden to calibrate and define a demand and supply model. We simulate how the profit, welfare, fares, frequencies, modal shares and train size depend on the level of the track charges. We simulate the welfare optimal track charges, given different levels of congestion on the track, hence using the charges as a pricing instrument to allocate the train slots efficiently. We find that increases in charges have a limited impact on fares but larger impacts on the frequency. When the length of the trains can be extended and when the crowding penalty is high, the impact of higher track charges on the frequencies is larger. Higher track charges increase the length of the trains if possible. The intermodal competition from road and air has a significant impact on rail fares.

Place, publisher, year, edition, pages
Elsevier , 2021. Vol. 26-27, article id 100217
Keywords [en]
Rail access charges; Track charges; Optimal pricing; Vertical separation; Intermodal competition; Open access
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:liu:diva-179458DOI: 10.1016/j.ecotra.2021.100217ISI: 000693354600005OAI: oai:DiVA.org:liu-179458DiVA, id: diva2:1597131
Note

Funding Agencies|Impact-2 project, in Shift2Rail - European Union; Swedish Transport Administration

Available from: 2021-09-24 Created: 2021-09-24 Last updated: 2026-04-24
In thesis
1. Marginal Infrastructure Costs and Pricing in Road and Rail Transport
Open this publication in new window or tab >>Marginal Infrastructure Costs and Pricing in Road and Rail Transport
2026 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This licentiate thesis examines marginal cost estimation and pricing in transport infrastructure, with empirical applications to Swedish roads and railways. The thesis consists of three papers addressing how infrastructure charges can be aligned with short-run marginal social costs.

The first paper estimates marginal road renewal costs per heavy vehicle kilometre using panel data on approximately 1.3 million 100-meter road segments (1999–2022). A two-part discrete–continuous framework is applied, combining models of renewal timing (probit and Weibull survival specifications) with renewal expenditures (a log-log function). The results show substantial heterogeneity in marginal renewal costs across road types, with heavy vehicles generating higher costs on low-standard roads than on motorways or other high-standard roads.

The second paper estimates short-run marginal road maintenance costs per heavy vehicle kilometre using administrative maintenance data at the Maintenance District Unit (MDU) level (2015–2024). A log-log cost function relates annual maintenance expenditure to heavy-vehicle traffic intensity by road type, controlling for network scale and weather conditions. The results indicate that the marginal maintenance cost per heavy vehicle kilometre is about 50 percent higher on low-standard roads than on high-standard roads. Combined with the renewal estimates from Paper 1, total marginal infrastructure costs range from 0.03 €/heavy-vkm on motorways to 0.51 €/heavy-vkm on low-standard roads, indicating that the marginal infrastructure cost imposed by heavy vehicles varies greatly across the road network.

The third paper analyses optimal rail access charges in a vertically separated railway market, where marginal capacity costs reflect track congestion. A calibrated demand and supply model for the Stockholm–Gothenburg corridor is used to simulate how track charges affect fares, frequencies, welfare, and modal competition. The results show that increases in track charges to reflect the marginal cost of congestion primarily reduce service frequency rather than substantially increasing fares, with welfare-optimal charges depending critically on congestion externalities.

Together, the papers show that marginal infrastructure pricing requires both disaggregated cost estimates and an understanding of how transport operators respond to infrastructure charges.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2026. p. 19
Series
Faculty of Arts and Sciences thesis, ISSN 1401-4637 ; 139
Keywords
Marginal cost, Road renewals, Road maintenance, Rail access charges, Optimal pricing
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-223263 (URN)10.3384/9789181185805 (DOI)9789181185799 (ISBN)9789181185805 (ISBN)
Presentation
2026-05-27, TE-building, Campus Valla, Linköping, 10:00 (English)
Opponent
Supervisors
Note

Funding: Swedish Transport Administration

Available from: 2026-04-24 Created: 2026-04-24 Last updated: 2026-04-30Bibliographically approved

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