In addition to their concentration on government-wide efforts to transform into a low-carbon or zero-carbon society, the cargo transportation sector is implementing various methods to enable environmental improvement. Among these methods, the need to expand subsidies for conversion to the eco-friendly railroad has been continuously raised. This study attempted to evaluate the effects of the railway conversion subsidy, such as reduction of emissions and social costs induced by the road freight transport sector. For this purpose, the socioeconomic benefit and the amount of air pollutant reduction were quantitatively estimated by travel demand analysis as it related to the decrease in traffic volume of truck resulting from the expansion of the railway conversion subsidy. The analysis indicated that the increase in the railway conversion subsidy would bring significant socioeconomic effects.

[Key Words] Road to Rail Shift Subsidy, Freight Modal Shift, Freight Rail Transportation, Socioeconomic Benefit