Does Asphalt Exhibit Economies of Scale?
The Scandinavian asphalt paving market is characterized by a high concentration of suppliers, thereby differing compared to other european countries but also the U.S. One plausible explanation behind the oligopoly-like structure is the prevalence of economies of scale, forming an entry barrier for firms seeking to enter the market. This paper estimates the existence and magnitude regarding economies of scale on the asphalt paving market. The analysis draws on data from 439 road resurfacing projects carried out in Sweden during 2012-2015. Data include three different types of asphalt pavement: Hot mix asphalt, warm mix asphalt and chip seal asphalt pavement. Evidence of economies of scale benefits is found in all three types of asphalt, with the most apparent effect within the relatively novel warm mix pavements.
- This paper was sponsored by TRB committee AFK10 Standing Committee on Critical Issues and Emerging Technologies in Asphalt.
Transportation Research Board,
- Johansson, Oskar
- Nilsson, Jan-Eric
- Nyström, Johan
- Transportation Research Board 98th Annual Meeting
- Location: Washington DC, United States
- Date: 2019-1-13 to 2019-1-17
- Date: 2019
- Media Type: Digital/other
- Features: Figures; References; Tables;
- Pagination: 15p
- TRT Terms: Asphalt pavements; Chip seals; Economies of scale; Hot mix asphalt; Market assessment; Paving; Resurfacing; Warm mix paving mixtures
- Geographic Terms: Sweden
- Subject Areas: Economics; Highways; Materials; Pavements;
- Accession Number: 01697363
- Record Type: Publication
- Report/Paper Numbers: 19-00184
- Files: TRIS, TRB, ATRI
- Created Date: Dec 7 2018 9:25AM