How Efficient are Intercity Railway Prices and Frequencies in Europe? Comparing a Corridor in Belgium and in France. (1st October 2019)

• Record Type: Journal Article
• Authors: Monchambert, Guillaume; Proost, Stef
• Is Part Of: Journal of transport economics and policy. Volume 53:Number 4(2019:Oct.)
• Page Start: 323
• Page End: 347
• Publication Date: 2019-10-01
• Subjects: Transportation -- Periodicals; 388.05
• Languages: English
• ISSNs: 1754-5951

Abstract

This paper studies the efficient pricing of medium-distance passenger rail in Europe. Current fares and frequencies are compared with three alternatives: first-best where road congestion is internalised; second-best where no road tolls are implemented; and third-best where a maximum rail deficit is also imposed. We find that second-best fares depend strongly on the non-internalised road congestion and on the price elasticity of the passengers, complicating the derivation of a national or regional fare structure. Second-best achieves a significant share of the first-best benefits, but adding a budget constraint makes second-best solutions difficult to implement for some corridors.