ON THE MARGINAL CAPITAL COSTS OF PEAK AND OFF-PEAK TRANSIT SERVICES

In this paper, the issue of the marginal capital costs of peak and off-peak services is revisited. A model is presented in which vehicle life is a function of usage (rather than elapsed time), and capital costs are determined using the capital recovery factor approach (in preference to the still-common "depreciation and interest" approach). These two features of the model interact to suggest explanations as to why the conditional marginal capital costs of off-peak services can be substantial, and why total capital costs may not be directly proportional to peak vehicle requirements.

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  • Accession Number: 00490240
  • Record Type: Publication
  • Report/Paper Numbers: HS-041 044
  • Files: TRIS
  • Created Date: Dec 31 1989 12:00AM