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September 8, 2026SystemsOpen Access

Recalibrating the External-Cost Benefits of Road-to-Rail Freight Modal Shift: Evidence from South Korea

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Authors

DKDaejin KimGOGwanyong OhHKHyunseung Kim

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Overview

Economic evaluation reveals substantially higher external-cost benefits of rail freight in national transport networks, indicating significant undervaluation in current logistics policies.

Key Points

  • To recalibrate the external-cost savings of shifting freight transportation from roads to rails across five primary impact domains: air pollution, climate change, noise, accidents, and congestion.
  • Applied a hybrid framework combining bottom-up emission modeling with top-down allocation of aggregate external costs.
  • Analyzed link-level national traffic flow records (KOTI View-T 3.0) and national statistics harmonized to a 2022 base year.
  • Determined a total unit benefit of KRW 151.81 per ton/kilometer for shifting freight to rail, roughly 3.7 times the current inflation-adjusted benchmark.
  • Demonstrated that updated emission inventories, accident statistics, and unit valuations raise benefits to KRW 69.6 per ton/kilometer, with the remainder driven by revising the link-level road freight traffic share from 3.5% to 21.2%.
  • Scenario analyses estimated total unit benefits between KRW 38.6 and 217.7 per ton/kilometer, exceeding current valuation benchmarks in all but the single most conservative scenario.

Cite This Study

Kim et al. (2026) studied this question.

synapsesocial.com/papers/6a9fd81458e84d0ff5b474cfhttps://doi.org/10.3390/systems14091101
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