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Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro


IMPACT FACTOR 2018: 0.080
5-year IMPACT FACTOR: 0.803

CiteScore 2018: 0.39

SCImago Journal Rank (SJR) 2018: 0.941
Source Normalized Impact per Paper (SNIP) 2018: 0.182

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1446-9022
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Volume 16, Issue 2

Issues

Public Budget Contributions to the European Rail Sector

An in Depth Analysis for Eight Countries

Jan Thomas Schäfer / Georg GötzORCID iD: http://orcid.org/0000-0001-7878-6726
Published Online: 2018-04-30 | DOI: https://doi.org/10.1515/rne-2017-0044

Abstract

This paper provides an analysis of the funding structure of the railways in eight European countries. It updates and expands the well-known database on public contributions to rail, which has initially been published by [NERA (2004) Study of the Financing of and Public Budget Contributions to Railways: A Final Report for European Commission, DG TREN. London: NERA National Economic Research Associates.]. The analysis shows that there are large differences concerning the focus of granted funds which can be explained by different policy objectives, differences in the level and degree of network access charges and different cost coverage ratios of public transport services. We identify a tendency towards two main financing models. In our data-set countries either focus their support payments on the operation of the infrastructure, which implies lower network charges and thus a lower amount of necessary Public Service Compensations, or they focus on the support of transport services with a higher degree of cost coverage of network charges and thus a lower amount of operating contributions paid to the infrastructure manager. The structure of funds, different approaches of infrastructure financing and differences in the treatment of historical debt are likely to have an influence on the performance of the investigated railway systems.

Keywords: contributions; Europe; financing; public budget; railways; subsidies

JEL Classification: R42; R48; L92; H54

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About the article

Corresponding author: Georg Götz, Professor, Justus Liebig University Giessen, Giessen, Germany


Published Online: 2018-04-30

Published in Print: 2017-06-26


Funding: Jan Schäfer thanks Deutsche Bahn AG for funding a PhD fellowship.


Citation Information: Review of Network Economics, Volume 16, Issue 2, Pages 89–123, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.1515/rne-2017-0044.

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