Implications of cost recovery
2008 (English)Report (Other academic)
Under some circumstances, the marginal cost approach to infrastructure pricing leads to problems with cost recovery; a pricing policy which ensures that existing assets are efficiently used may not deliver revenue to pay for the costs for maintenance of existing, nor indeed for construction of new infrastructure. For different reasons governments may find this inappropriate and rather want to complement the marginal-cost-pricing principle with a requirement for a sector of the economy to break even. Efficiency would then be jeopardised. The idea behind work package 2 is to establish the micro-aspects of requirements to recover costs over and above marginal costs. This is done for all modes of transport. More precisely, the objective of this report is to establish some core features of how each mode of transport is organised, to describe the implications of cost recovery requirements for each mode and to analyse different mechanisms which would ascertain that each mode covers a larger share of its own costs.
Place, publisher, year, edition, pages
2008. , 146 p.
, CATRIN, D3
Transport infrastructure, Road network, Railway network, Airport, Port, Use, Maintenance, Cost, Tariff, Road pricing, Calculation, Method, Mathematical model
Research subject SAB, Prd Aircrafts, air transport and airports; SAB, Prz Ships and shipping; J00 Railway: General works, surveys, comprehensive works, J13 Railway: Economics; 00 Road: General works, surveys, comprehensive works, 02 Road: Economics
IdentifiersURN: urn:nbn:se:vti:diva-6983OAI: oai:DiVA.org:vti-6983DiVA: diva2:745891
ProjectsCATRIN - Cost allocation of transport infrastructure cost