Revitalising European Railways: A Comparative Assessment of the Emerging Models

Abstract

In this paper, we analyse and compare the various institutional models and regulatory arrangements that have recently emerged from the restructuring of European passenger rail industries and, more specifically, the contractual agreements giving concrete expression to these policies. To do so, we developed a systemic framework consisting of seven key dimensions: the Decentralisation of regulatory control, the Disintegration of the industry, the Domain of the contractual assignment, the Discretion of management, the Distribution of risks, theDuration of contracts, and the Destination of subsidies. We use empirical material gathered on the passenger rail industries of five EU Member States, i.e. Belgium, France, Germany, Great Britain, and Sweden, as well as extrapolation to highlight the most likely costs and benefits (incentive properties) associated with alternative arrangements and contract features and to show how the above dimensions, which are connected with one another in a complex web of interactions, can be traded-off against one another in order to optimize the industry s performance.