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The marginal costs of railway reinvestment

Project Number: 403

Project Leader: Jan-Eric Nilsson

Start Date: 2014-12-01

End Date: 2015-06-30

Research Question Economics in the transport sector addresses two main issues; the welfare maximising choice of investment projects and the welfare maximising level of user charges. This project addresses one particular dimension of the second challenge, namely the marginal costs of vehicle wear and tear on railways and the subsequent need to rehabilitate the line. This marginal cost is one component of the optimal user charge.

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