Impact of a Truck Safety Fare System on Rail Freight Transport Volume

Korea implemented a truck safety fare system for a trial period from January 1, 2020 to December 31, 2022, to improve the safety of truck drivers through fare regulations. However, if changes in freight transport volume due to the introduction of the system can be identified from changes in rail transport performance, it is possible to estimate the elasticity of substitution between road transport and rail transport. This paper presents a double-difference model to analyze how the difference in transport performance by train between freight types has changed before and after the implementation of the system. The analysis results indicate that the system had indeed the effect of converting freight transport volume from road to rail.