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Schemes And Levels Of State Aid To Rail Industry In Europe: Evidences From A Cross-Country Comparison

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  • Ugo Arrigo

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca)

  • Giacomo Foggia

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca)

Abstract

The purpose of this paper is to illustrate the evolution of both schemes and levels of public support to railway sector in selected European countries. Although prior research sheds some light on this topic, more information is required to clarify national obligations under European railway liberalisation law regarding incentives toward railway undertakings. Focusing on Italy, besides the reduction of capital grants, justified by the completion of the high-speed line Turin-Milan-Naples, this paper finds an increasing support to the service operators and in the meantime a reduction of subsidies aimed at financing network operations. This shift of resources may undermine competition. The findings of this study help to fill the gap in estimating State aid to European railways.

Suggested Citation

  • Ugo Arrigo & Giacomo Foggia, 2013. "Schemes And Levels Of State Aid To Rail Industry In Europe: Evidences From A Cross-Country Comparison," European Journal of Business and Economics, Central Bohemia University, vol. 8(3), pages 4101:8-4101, October.
    • Handle: RePEc:aad:ejbejj:v:8:y:2013:i:3:p:410
    DOI: 10.12955/ejbe.v8i3.410
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    Cited by:

    1. Laurino, Antonio & Ramella, Francesco & Beria, Paolo, 2015. "The economic regulation of railway networks: A worldwide survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 202-212.
    2. Schäfer Jan Thomas & Götz Georg, 2017. "Public Budget Contributions to the European Rail Sector," Review of Network Economics, De Gruyter, vol. 16(2), pages 89-123, June.
    3. Giacomo Di Foggia & Ugo Arrigo, 2015. "The scope of public organisations with productive functions: insights from the inefficiency of Italian local public transport," European Journal of Government and Economics, Europa Grande, vol. 4(2), pages 134-154, December.

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    More about this item

    Keywords

    RailwaysState aid; Deregulation; Transport economics; Subsidies; Europe; Competition;
    All these keywords.

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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