Quality standards for passenger trains: Political majorities and environmental costs

This study analyzes the minimum quality standard set by the European Union through regulation 1371/2007 of rail passengers’ rights and obligations. A welfare maximizing quality standard raises quality and consumer satisfaction, but does not improve the modal split of rail transport. A minimum quality standard determined by political majorities may or may not increase welfare. All binding standards, however, induce travelers to switch to transport modes with higher anthropogenic greenhouse gas emissions.

Research highlights
► Assesses the role of regulation in protecting travelers’ interests.
► Finds that the European Union through regulation 1371/2007 of rail passengers’ rights and obligations does not provide a welfare maximizing outcome.
► All binding standards induce rail travelers to switch to transport modes with higher anthropogenic greenhouse gas emissions.