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The efficient use of infrastructure – is Sweden pricing traffic on its roads, railways, waters and airways at marginal costs?

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  • Nilsson , Jan-Eric Nilsson

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Isacsson , Gunnar

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Haraldsson, Mattias

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Nerhagen, Lena

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Odolinski, Kristofer

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Swärdh, Jan-Erik

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Vierth, Inge

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Yarmukhamedov, Sherzod

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

  • Österström, Johannes

    (CTS - Centre for Transport Studies Stockholm (KTH and VTI))

Abstract

This review summarizes recent information about the marginal costs for using Sweden’s infrastructure and the relationship between the sum of marginal costs and charges for each mode. It is demonstrated that the tax on petrol used by private cars is higher than the marginal costs for emissions, accident risk and road wear and tear. The diesel tax is, on the other hand, not sufficient for internalization of heavy vehicles’ externalities. Neither trains nor aircraft or ships pay for their marginal costs. For railways, this confirms previous observations that Swedish track user charges are low in an international context. Except for a low level of charges, several examples are given of the strong motives for differentiation of charges in time and geography. The rapid technical development makes the cost motive for not differentiating the charges increasingly irrelevant.

Suggested Citation

  • Nilsson , Jan-Eric Nilsson & Isacsson , Gunnar & Haraldsson, Mattias & Nerhagen, Lena & Odolinski, Kristofer & Swärdh, Jan-Erik & Vierth, Inge & Yarmukhamedov, Sherzod & Österström, Johannes, 2018. "The efficient use of infrastructure – is Sweden pricing traffic on its roads, railways, waters and airways at marginal costs?," Working papers in Transport Economics 2018:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    • Handle: RePEc:hhs:ctswps:2018_002
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    References listed on IDEAS

    as
    1. Ljungberg, Anders, 2016. "Marginal cost-pricing in the Swedish transport sector – An efficient and sustainable way of funding local and regional public transport in the future?," Research in Transportation Economics, Elsevier, vol. 59(C), pages 159-166.
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    3. Odolinski, Kristofer & Nilsson, Jan-Eric, 2016. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Working papers in Transport Economics 2016:27, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 13 May 2017.
    4. Smith, Andrew S.J. & Odolinski, Kristofer & Hossein Nia, Saeed & Jönsson, Per-Anders & Stichel, Sebastian & Iwnicki, Simon & Wheat, Phillip, 2016. "Estimating the marginal cost of different vehicle types on rail infrastructure," Working papers in Transport Economics 2016:26, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
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    More about this item

    Keywords

    Marginal cost pricing; roads; railways; waterway infrastructure; air infrastructure;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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