The authors derive the annual welfare effects of low water levels on the river Rhine employing detailed trip data reported by bargemen between January 2003 and July 2005. They find a considerable effect of water levels on freight price per ton and load factor, but the effect on the price per trip is close to zero. Using water level information over a period of almost 20 years, the average annual welfare loss due to low water levels is estimated to be about C28 £28 million. In years with extremely low water levels, such as in 2003, the loss amounts to about £91 million, about 13 per cent of the market turnover in the part of the Rhine market considered.
|Number of pages||25|
|Journal||Journal of Transport Economics and Policy|
|Publication status||Published - 1 Sep 2007|