Title

Quality standards for passenger trains: Political majorities and environmental costs

Document Type

Journal Article

Publication Date

2010

Subject Area

economics - profitability, mode - rail, organisation - competition, organisation - performance, place - europe

Keywords

Economic regulation, Minimum quality standards, Rail environmental standards

Abstract

This study analyzes the minimum quality standard set by the European Union through regulation 1371/2007 of rail passengers’ rights and obligations. A welfare maximizing quality standard raises quality and consumer satisfaction, but does not improve the modal split of rail transport. A minimum quality standard determined by political majorities may or may not increase welfare. All binding standards, however, induce travelers to switch to transport modes with higher anthropogenic greenhouse gas emissions.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Transportation Research Part D Home Page: http://www.sciencedirect.com/science/journal/13619209