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The marginal cost for pavement renewal - a duration analysis approach

Author

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  • Haraldsson, Mattias

    (VTI)

Abstract

The wear and tear of an extra vehicle that uses a road results in advancement of future repavements. This increases the present value cost of these repavements, which is interpreted as the marginal cost. Using a large data set covering all pavement renewals on the Swedish national road network since the 1950s, deterioration elasticities that express the relation between traffic intensity and the pavement lifetime are estimated and are then used to compute marginal costs. The elasticities for heavy goods vehicles and passenger cars are found to be small and marginal costs are accordingly low.

Suggested Citation

  • Haraldsson, Mattias, 2007. "The marginal cost for pavement renewal - a duration analysis approach," Working Papers 2007:8, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2007_008
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    File URL: http://www.transportportal.se/SWoPEc/Swopec%20durationsmodell.pdf
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    Citations

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    Cited by:

    1. Nilsson, Jan-Eric & Svensson, Kristin & Haraldsson, Mattias, 2020. "Estimating the marginal costs of road wear," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 455-471.
    2. Nilsson, Jan-Eric & Svensson , Kristin & Haraldsson, Mattias, 2015. "Estimating the marginal costs of road wear," Working papers in Transport Economics 2015:5, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Anani, Shadi B. & Madanat, Samer M, 2010. "Estimation of Highway Maintenance Marginal Cost under Multiple Maintenance Activities," University of California Transportation Center, Working Papers qt0fh705xg, University of California Transportation Center.

    More about this item

    Keywords

    Marginal cost; duration analysis; pavement renewal;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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