The Economic Effects of High Speed Rail Investment

This paper, from a monograph about competitive interaction between airports, airlines, and high-speed rail, focuses on the economic effects of high-speed rail (HSR) investment. Topics covered include the total costs of building and operating an HSR line, basic calculations of HSR costs, the benefits of HSR, HSR and its effects on regional inequalities, a cost-benefit model for the evaluation of HSR, intermodal transportation effects as benefits in the primary market, the effects of HSR on secondary markets, and pricing considerations. The author notes that HSR investment is a government decision with significant effects on the generalized cost of rail transport. The result is a modal split in corridors where private operators compete for traffic and charge prices close to total producer costs (infrastructure included). The author maintains that rationale for HSR investment is not different than any other public investment decision. Public funds should be allocated to this mode of transport if its net expected social benefit is higher than the next best alternative. The author examines data on costs and demand and concludes that the case for investing in HSR is strongly dependent on the existing volume of traffic where the new lines are built, the expected time savings and generated traffic and the average willingness to pay of potential users, the release of capacity in congested roads, airports or conventional rail lines and the net reduction of external effects. HSR investment may be adequate for some corridors, for example, those with capacity problems in their railway networks or with road and airport congestion, but its convenience is closely related to the above-mentioned conditions and the volume of demand to be expected.

• Record URL:
  http://www.internationaltransportforum.org/jtrc/discussionpapers/DP200816.pdf
• 
• Availability:
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• Corporate Authors:

  International Transport Forum

  2 rue Andre Pascal
  Paris Cedex 16,   France  F-75775
• Authors:
  • de Rus, Gines
• Publication Date: 2009

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 165-200
• Monograph Title: Competitive Interaction Between Airports, Airlines and High-Speed Rail

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Economic impacts; Governments; High speed rail; Intermodal transportation; Investments; Operating revenues; Policy making; Profitability; Railroad transportation; Regional transportation; Social benefits; Transportation modes; Travel behavior
• Uncontrolled Terms: Transportation infrastructure
• Subject Areas: Economics; Railroads; Terminals and Facilities; I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01146690
• Record Type: Publication
• ISBN: 9789282102459
• Files: TRIS
• Created Date: Dec 22 2009 9:00AM