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The Full Cost of High-Speed Rail: An Engineering Approach

Author

Listed:
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

  • Jean-Michel Mathieu
  • Adib Kanafani
  • David Gillen

Abstract

This paper examines the full costs, defined as the sum of private and social costs, of a high speed rail system proposed for a corridor connecting Los Angeles and San Francisco in California. The full costs include infrastructure, fleet capital and operating expenses, the time users spend on the system, and the social costs of externalities, such as noise, pollution, and accidents. Comparing these full costs to those of other competing modes contributes to the evaluation of the feasibility of high speed rail in the corridor. The paper concludes that high speed rail is significantly more costly than expanding existing air service, and marginally more expensive than auto travel. This suggests that high speed rail is better positioned to serve shorter distance markets where it competes with auto travel than longer distance markets where it substitutes for air.

Suggested Citation

  • David Levinson & Jean-Michel Mathieu & Adib Kanafani & David Gillen, 1997. "The Full Cost of High-Speed Rail: An Engineering Approach," Working Papers 199705, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:highspeedrail
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    File URL: http://hdl.handle.net/11299/179854
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    Cited by:

    1. Levinson, David M., 2012. "Accessibility impacts of high-speed rail," Journal of Transport Geography, Elsevier, vol. 22(C), pages 288-291.
    2. Nicole Adler & Chris Nash & Eric Pels, 2008. "High-Speed Rail & Air Transport Competition," Tinbergen Institute Discussion Papers 08-103/3, Tinbergen Institute.
    3. de Rus, Ginés & Socorro, M. Pilar, 2019. "Pricing and investment in alternative transport infrastructures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 96-107.
    4. Cartenì, Armando & Pariota, Luigi & Henke, Ilaria, 2017. "Hedonic value of high-speed rail services: Quantitative analysis of the students’ domestic tourist attractiveness of the main Italian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 348-365.
    5. Chester, Mikhail V. & Ryerson, Megan S., 2014. "Grand challenges for high-speed rail environmental assessment in the United States," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 15-26.
    6. Chen, Zhenhua & Xue, Junbo & Rose, Adam Z. & Haynes, Kingsley E., 2016. "The impact of high-speed rail investment on economic and environmental change in China: A dynamic CGE analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 232-245.
    7. Narayan, Sundar, 2016. "Solar-Powered Vactrain - A Preliminary Analysis," 57th Transportation Research Forum (51st CTRF) Joint Conference, Toronto, Ontario, May 1-4, 2016 319304, Transportation Research Forum.
    8. Campos, Javier & de Rus, Ginés, 2009. "Some stylized facts about high-speed rail: A review of HSR experiences around the world," Transport Policy, Elsevier, vol. 16(1), pages 19-28, January.
    9. Michael B. Charles & Neal Ryan & Robbert A. Kivits, 2012. "Moving towards sustainable intercity transport: a case study of high-speed rail in Australia," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 15(1/2), pages 125-147.
    10. Noor, Bashar Abdal & Sirong, Yi & Alam Kazmi, Syed Hasnain & Abid, Malik Muneeb, 2016. "Modeling for Operating Expenses and Time Consumption of High-Speed Railway (HSR)," MPRA Paper 73207, University Library of Munich, Germany.
    11. Wang, Kun & Xia, Wenyi & Zhang, Anming, 2017. "Should China further expand its high-speed rail network? Consider the low-cost carrier factor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 105-120.
    12. Campos, Javier & de Rus, Gines & Barron, Ignacio, 2007. "A review of HSR experiences around the world," MPRA Paper 12397, University Library of Munich, Germany.
    13. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    14. Delucchi, Mark A. & McCubbin, Donald R., 2010. "External Costs of Transport in the U.S," Institute of Transportation Studies, Working Paper Series qt13n8v8gq, Institute of Transportation Studies, UC Davis.
    15. Mark Delucchi & Don McCubbin, 2011. "External Costs of Transport in the United States," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 15, Edward Elgar Publishing.
    16. Ryerson, Megan S. & Kim, Amy M., 2018. "A drive for better air service: How air service imbalances across neighboring regions integrate air and highway demands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 237-255.
    17. Isabelle Laplace & Nathalie Lenoir & Isabel Rebello & Francisco Pita & Antonio Valadares, 2005. "Intermodality and passenger transport," Post-Print hal-01021742, HAL.
    18. Wang, Jiaoe & Du, Delin & Huang, Jie, 2020. "Inter-city connections in China: High-speed train vs. inter-city coach," Journal of Transport Geography, Elsevier, vol. 82(C).
    19. Talebian, Ahmadreza & Zou, Bo & Peivandi, Ahmad, 2018. "Capacity allocation in vertically integrated rail systems: A bargaining approach," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 167-191.
    20. De Rus, Ginés, 2011. "The BCA of HSR: Should the Government Invest in High Speed Rail Infrastructure?," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 2(1), pages 1-28, January.
    21. Mariko Utsunomiya & Kenichi Hodota, 2011. "Financial lessons from Asian experience in constructing and operating high speed train networks," Transportation, Springer, vol. 38(5), pages 753-764, September.
    22. Concepción Román, 2008. "Competencia intermodal en el corredor Madrid-Zaragoza-Barcelona ante la introducción del tren de alta velocidad," Economic Reports 11-08, FEDEA.
    23. Jiang, Changmin & Zhang, Anming, 2014. "Effects of high-speed rail and airline cooperation under hub airport capacity constraint," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 33-49.
    24. de Rus Ginés & Socorro M. Pilar, 2017. "Planning, Evaluation and Financing of Transport Infrastructures: Rethinking the Basics," Review of Network Economics, De Gruyter, vol. 16(2), pages 143-160, June.
    25. Campos, Javier & de Rus, Gines & Barron, Iñaki, 2007. "The cost of building and operating a new high speed rail line," MPRA Paper 12396, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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