Schemes and levels of state aid to rail industry in Europe: evidences from a cross-country comparison

Arrigo, Ugo and Di Foggia, Giacomo (2013): Schemes and levels of state aid to rail industry in Europe: evidences from a cross-country comparison. Published in: European Journal of Business and Economics , Vol. 3, No. 8 (2013): pp. 14-20.

Abstract

The purpose of this paper is to illustrate the evolution of both schemes and levels of public support to railway sector in selected European countries. Although prior research sheds some light on this topic, more information is required to clarify national obligations under European railway liberalisation law regarding incentives toward railway undertakings. Focusing on Italy, besides the reduction of capital grants, justified by the completion of the highspeed line TurinMilanNaples, this paper finds an increasing support to the service operators and in the meantime a reduction of subsidies aimed at financing network operations. This shift of resources may undermine competition. The findings of this study help to fill the gap in estimating State aid to European railways.

• Item Type: MPRA Paper
• Language: English
• Keywords: railways, deregulation, state aid, public finance, govvernment expenditure, transport economics
• Subjects: H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans ; Loan Guarantees ; Credits ; Grants ; Bailouts; L - Industrial Organization > L4 - Antitrust Issues and Policies > L43 - Legal Monopolies and Regulation or Deregulation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L92 - Railroads and Other Surface Transportation

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