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  • 1.
    Börjesson, Maria
    et al.
    KTH.
    Fung, Chau Man
    KU Leuven.
    Proost, Stef
    KU Leuven.
    Optimal prices and frequencies for buses in Stockholm2017In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 9, p. 20-36Article in journal (Refereed)
    Abstract [en]

    Many public transport services are heavily subsidized. One of the main justifications is the expected beneficial effect on road congestion. Stockholm introduced congestion pricing in 2006 and the effects on car and public transport demand were carefully monitored. The change in prices provides unique estimates on price-and cross-price elasticities. This paper uses these data to model how the optimal pricing, frequency, bus size and number of bus lanes for a corridor depends on the presence of congestion pricing for cars. Results show that the presence of road pricing makes the current subsidies for peak bus trips too high. However, the major welfare benefits of re-optimizing the current bus supply stem from a decrease in frequencies during the off-peak period and the use of larger buses.

  • 2.
    Börjesson, Maria
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Isacsson, Gunnar
    Trafikverket.
    Andersson, Mats
    WSP Analys.
    Anderstig, Christer
    WSP Analys.
    Agglomeration, productivity and the role of transport system improvements2019In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 18, p. 27-39Article in journal (Refereed)
    Abstract [en]

    We explore how transport improvements impact agglomeration defined as accessibility and thereby productivity in mid-Sweden including Stockholm 1995–2006. We apply an accessibility index derived from a multi-modal transport model. This is a more accurate measure of agglomeration than those previously used and also necessary for understanding how governments can impact agglomeration, and thereby productivity, by transport investments. We regress temporal changes in wages on temporal changes in agglomeration by applying a FE estimator. We deal with the potential endogeneity using a novel instrumental variable. Our best estimates of the agglomeration elasticity on productivity lie within the interval 0.028–0.035.

  • 3.
    Eliasson, Jonas
    et al.
    KTH.
    Pyddoke, Roger
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Swärdh, Jan-Erik
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Distributional effects of taxes on car fuel, use, ownership and purchases2018In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 15, p. 1-15Article in journal (Refereed)
    Abstract [en]

    We analyse distributional effects of four car-related tax instruments: an increase of the fuel tax, a new kilometre tax, an increased CO2-differentiated vehicle ownership tax, and a CO2-differentiated purchase tax on new cars. Distributional effects are analysed with respect to income, lifecycle category, and spatial dimensions. The analysed taxes are progressive over most of the income distribution, but barely regressive if the highest and lowest incomes are included. However, the fraction of the population who suffer substantial welfare losses relative to income is much higher in lower income groups. We also study revenue recycling schemes; when these are included, the combined effect of tax and recycling is progressive. Considering geographical differences; rural areas carry a larger burden of fuel and vehicle taxes than urban areas, and satellites/suburbs carry a larger burden than central cities. However, rural areas are affected remarkably similar regardless of where in the country they are located.

  • 4.
    Jussila Hammes, Johanna
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Mandell, Svante
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Local government co-financing of the central government's transport infrastructure investment2019In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 18, p. 40-49Article in journal (Refereed)
    Abstract [en]

    We study two districts’ voluntary co-financing of a centrally provided public good, e.g., transport infrastructure. Outcomes are compared to a surplus-maximizing level of public good provision. We show that both co-financing and lobbying raise the amount of public good provided. Co-financing and lobbying are substitutes. Co-financing (or co-financing combined with lobbying) raises the provision of the public good to a higher level than lobbying alone. Co-financing can thus reduce rent-seeking. Finally, we show that under uncertainty about district type (high or low benefit), co-financing combined with lobbying can be used to find and retain a separating equilibrium.

  • 5.
    Nilsson, Jan-Eric
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Jussila Hammes, Johanna
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    The allocation of transport infrastructure in Swedish municipalities: Welfare maximization, political economy or both?2016In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 7, p. 53-64Article in journal (Refereed)
    Abstract [en]

    This paper compares models for explaining the volume of transport investments in Swedish municipalities: 1 by the planned projects’ welfare consequences, 2. in terms of the district demand (the common pool) model, namely a municipality's share of the cost towards the investment and 3. electoral concerns and/or lobbying, as described by a swing voter model.

    We find that the welfare only hypothesis has little explanatory power. The district demand model explains the investment volume in rail projects, while the swing voter model explains road investment better. Lobbying does not seem to have any impact on the investment volume.

    Finally, we find that including a measure of the welfare in the political economy models greatly enhances the models’ explanatory power. Our main conclusion is that future analyses of what drives the allocation of resources for transport infrastructure should consider aspects related to both political economy, welfare, and the transport mode.

  • 6.
    Odolinski, Kristofer
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Contract design and performance of railway maintenance: Effects of incentive intensity and performance incentive schemes2019In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 18, p. 50-59Article in journal (Refereed)
    Abstract [en]

    In this paper we study the effect of contract design on the performance of railway maintenance in Sweden, using a panel data set over the period 2003-2013. The effect of incentive intensity is estimated, showing that the power of incentive schemes improve performance as measured by the number of infrastructure failures. In addition, we show that the structure of the performance incentive schemes has resulted in a reallocation of effort from failures not causing train delays to failures causing train delays, with a substantial increase in the former type of failures. This signals a deteriorating asset condition, which highlights the need to consider the long-term effects of this incentive structure. Overall, this work shows that the design of the incentive structures has a large impact on the performance of maintenance, and that the estimated effects are important to consider when assessing contract designs within this field.

  • 7.
    Odolinski, Kristofer
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Nilsson, Jan-Eric
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Estimating the marginal maintenance cost of rail infrastructure usage in Sweden: does more data make a difference?2015In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130Article in journal (Refereed)
    Abstract [en]

    This paper updates knowledge about the marginal cost of railway maintenance. Using a panel dataset comprising 16 years, we test whether more data makes a difference to conclusions. In contrast to previous estimates using a shorter panel, maintenance costs are now demonstrated to exhibit a positive dynamic effect; an increase in maintenance cost during one year indicates the need for more maintenance also the next year. Moreover, the marginal cost from the dynamic model is larger than its static counterpart. We conclude that the use of dynamic models on longer time series may have charging implications in several EU member states, considering that their track access charges are based on econometric studies that use static models and short panel datasets.

  • 8.
    Odolinski, Kristofer
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Wheat, Phill
    Dynamics in rail infrastructure provision: Maintenance and renewal costs in Sweden2018In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130Article in journal (Refereed)
    Abstract [en]

    In this paper, we extend to the literature on marginal wear and tear cost estimation in railways, by applying a panel vector autoregressive model to rail infrastructure renewals and maintenance costs, using an extensive dataset from Sweden. This study is significant given the inherent difficulties in modelling the substantial renewals element of infrastructure costs, as well as the need to account for the dynamics in renewals and maintenance. The dynamic model allows us to estimate equilibrium cost elasticities with respect to train usage, which are significantly larger than their static counterparts. Overall, this work highlights that dynamics in rail infrastructure costs are important to consider when setting track access charges with respect to the wear and tear caused by traffic. This is particularly important given several countries, for example France, Sweden and Switzerland, are now setting access charges at marginal costs based on econometric studies.

  • 9.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Competition in Swedish passenger railway: Entry in an open access market and its effect on prices2017In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 11-12, p. 49-59Article in journal (Refereed)
    Abstract [en]

    The Swedish market for passenger railway services has been open to competition since the year 2010. Although minor entries have been made since this date, the incumbent SJ only faced substantial competition on the tracks when MTR entered the Stockholm-Gothenburg line in March 2015. Using unique Swedish ticket price data from operators' websites, this paper investigates what effects this entry has had on market prices.The results show that the incumbent's prices decreased by 12.6 percent on average between March 2015 and June 2016. The price level of the competitor is well below the average price that was offered in the pre-entry period. Further, the largest price reduction, in percentage terms, was found on tickets booked 13 days before departure date. Finally, the observed price decrease in the paper is most likely at a short-run equilibrium, or an ongoing process, implying that prices might adjust further in the long-run.

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