4.1 – Air versus High-Speed Rail in Europe

By Nicole Adler

Adler provides research outcomes on an analysis of the competitive outcome of additional or expanded high-speed rail infrastructure on the transport equilibrium in the medium to long haul passenger market i.e. for trips beyond 300 kilometres. Among others, she concludes that it is only worthwhile improving the high-speed European rail network if the regulators are willing to subsidize the cost of the infrastructure upgrading. She also concludes that it is possible to set an environmental charge of €100 per flight and €50 per train service without dramatically changing the transport equilibrium, thus collecting approximately half the estimated environmental damage.