Standard costs of regional public rail passenger transport: evidence from Italy

The paper estimates the standard cost in Italian regional public rail passenger transport\r\nservices (LPTR), depending on service characteristics. The results highlight the crucial role\r\nof: number of seats per ride, commercial speed, service size and length of rail tracks. The\r\nmodel also shows the positive link between investment in rolling stock and the unit cost of the\r\nservice. Finally, based on the empirical evidence, we propose regulatory adjustments to\r\naccomplish policy targets regarding the fair allocation of public LPTR funds to Regions and\r\nLocal Authorities and a more efficient use of (scarce) local and national public resources.