Odolinski, K orcid.org/0000-0001-7852-403X, Nilsson, J-E, Yarmukhamedov, S et al. (1 more author) (2020) The marginal cost of track renewals in the Swedish railway network: Using data to compare methods. Economics of Transportation, 22. 100170. ISSN 2212-0122
Abstract
We analyze the differences between corner solution and survival models in estimating the marginal cost of track renewals. Both approaches describe the renewal process in intuitively similar ways but have several methodological distinctions. Using Swedish data for the 1999–2016 period, results suggest the median marginal costs per gross ton-km from corner solution and survival models are SEK 0.0066 and SEK 0.0031, respectively. Since several European countries use information about marginal costs as a basis for track user charges, the choice of estimation method is obviously important. Our conclusion is that the corner solution model is more appropriate in this case, as this method considers the impact traffic has both on the probability of renewal and on the size of the renewal cost. The survival approach does not consider the latter as part of the estimations, which is problematic when we have systematic cost variations due to traffic and infrastructure characteristics.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Elsevier Ltd. All rights reserved. This is an author produced version of an article, published in Economics of Transportation. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Railways; Renewal; Survival model; Corner solution model; Two-part model; Marginal cost |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) > ITS: Economics and Discrete Choice (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Apr 2021 14:36 |
Last Modified: | 21 May 2021 00:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ecotra.2020.100170 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:172750 |
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Filename: Manuscript_The marginal cost of track renewals.pdf
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