Titel:
The marginal cost controversy in Swedish transport policy

Abstract:
This article analyses pricing and taxation policies for road and railroad infrastructure. According to an institutional perspective a full cost coverage principle is appropriate. Viewed through the lens of neo-classical welfare economics marginal cost based pricing is generally recommended. These questions were analyzed by Ronald Coase in a series of articles from 1946-1970 arguing that there was a controversy between the two perspectives. Here Coase�s view, which seems surprisingly up to date nearly 70 years later, is applied to the Swedish government�s financing principles for transport infrastructure from the 1940s to the 2010s.

It is argued that it seems reasonable to interpret the discussion in Sweden around pricing and financing policies related to transport infrastructure as a controversy between the two perspectives. The controversy seems to have been strongest during the 1970s-80s, when the shift from a �cost responsibility principle� to a marginal cost principle was most discussed. Reasons for the shift are discussed.

Forfatter:
Bj�rn Hasselgren, KTH

Danske Keywords:

Engelske Keywords:
Transport infrastructure, financing principles, cost coverage, marginal costs, incentives

År:
2012

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