In 1979 the prevailing transport principle in Sweden implying that all land transport modes should pay their overall costs was replaced by i) cost-responsibility based on efficiency (social marginal costs) and II) payment-responsibility based on political considerations. According to this, Swedish Rail has been relieved from infrastructural costs in order to be able to charge only for long long-run marginal costs. At the same time it was proclaimed that the question of whether road traffic pays more than its overall costs only is of political interest. Although the principle of marginal cost pricing has strong theoretical support, the principle in practice indicates that a "second-best" solution should be found. The main implications of marginal cost pricing are two-part tariffs and peak-load pricing. An implication of more questionable nature is the rejection of the principle of responsibility for overall social costs. With the current application of the principle there is a risk of distorting the competitive market mechanisms, ie, marginal cost pricing of one transport mode when competitors are compelled to charge average costs, might be a bad transport policy. For the covering abstract of the seminar see IRRD 283591. (TRRL)

  • Availability:
  • Supplemental Notes:
    • Transport Policy. Proceedings of Seminar J held at the 12th PTRC Summer Annual Meeting, University of Sussex, England, 10-13 July 1984, Volume P252.
  • Corporate Authors:

    PTRC Education and Research Services Limited

    110 Strand
    London WC2,   England 
  • Authors:
    • HANSSON, L
  • Conference:
  • Publication Date: 1984

Media Info

  • Features: Figures;
  • Pagination: p. 31-40

Subject/Index Terms

Filing Info

  • Accession Number: 00451253
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • ISBN: 086050-137-X
  • Files: ITRD, TRIS
  • Created Date: Nov 30 1985 12:00AM