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Rail access charges in France: Beyond the opposition between competition and financing

Author

Listed:
  • Yves Crozet

    (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Florian Chassagne

    (LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

Abstract

Access charges to the railway infrastructures, and in particular of the high speed lines, poses many theoretical and practical questions. Besides the need to decide whether it is better to apply a principle of marginal cost or a full cost approach, a difficulty arises with regard to the possibilities of competition between various operators. France is especially affected by this problem since access charges are particularly high while at the same time competition is non-existent. Is this absence of competition explained by the high level of access charges? After describing the principles which underlie the pricing scheme for high speed trains in France, this paper attempts to find out if these tolls constitute a barrier to entry. After building a model that summarizes the components of supply and demand on the Paris-Lyon journey, this paper shows that the considerations relating to demand (peak hour or off-peak hour) are more fundamental than access charges, which do not in themselves constitute a barrier to entry. Barriers exist, but they involve access charges in relation to the allocation of slots which would make it possible to guarantee certain profitability to a new entrant. Break-even points are proposed which show that SNCF's potential competitors have margins for manoeuvre.

Suggested Citation

  • Yves Crozet & Florian Chassagne, 2013. "Rail access charges in France: Beyond the opposition between competition and financing," Post-Print halshs-01021433, HAL.
    • Handle: RePEc:hal:journl:halshs-01021433
    DOI: 10.1016/j.retrec.2012.06.021
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    Citations

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    Cited by:

    1. Branislav Bošković & Mirjana Bugarinović & Gordana Savić & Ratko Djuričić, 2021. "Challenges of Track Access Charges Model Redesign," Sustainability, MDPI, vol. 13(24), pages 1-14, December.
    2. Ristić Bojan & Trifunović Dejan & Herceg Tomislav, 2021. "Capacity Competition in Differentiated Oligopolies: Entry Deterrence with Alternative Objective Functions," South East European Journal of Economics and Business, Sciendo, vol. 16(1), pages 84-92, June.
    3. Ristić, Bojan & Stojadinović, Nikola & Trifunović, Dejan, 2022. "Conditions for effective on-track competition in the European passenger railway market: A yardstick for regulations," Transport Policy, Elsevier, vol. 119(C), pages 1-15.
    4. Bonnafous, Alain & Crozet, Yves, 2018. "Consumer surplus and pricing of transport infrastructures: The legacy of Jules Dupuit," Transport Policy, Elsevier, vol. 70(C), pages 8-13.
    5. Crozet, Yves, 2014. "Extension of the high speed rail network in France: Facing the curse that affects PPPs in the rail sector," Research in Transportation Economics, Elsevier, vol. 48(C), pages 401-409.
    6. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2016. "Rail access charges and internal competition in high speed trains," Transport Policy, Elsevier, vol. 49(C), pages 184-195.
    7. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2021. "The effect of cooperative infrastructure fees on high-speed rail and airline competition," Transport Policy, Elsevier, vol. 112(C), pages 125-141.

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