Economic and Environmental Assessments of Thailand’s Rail Transport Investment

Authors

รศ.ดร.สมพจน์ กรรณนุช

Published

NIDA Development Journal

Abstract

In the present study a CGE model was used to assess Thailand’s plan for rail transport investment in terms of changes in the economy and regarding CO2 emissions. Aggregate economic impact is described in terms of change in real GDP and a number of macro indicators. Economic impacts also involve change in the economic structure created by differences in the strength of change at the micro level. Environmental impact is expressed in terms of change in CO2 emissions, coupled with the petroleum consumption of different production. Change in petroleum consumption is brought about by changes in the components of the economic system at macro and micro levels. This study found that rail investment produces a positive change in real GDP, which summarizes both the appreciation and depreciation of economic components. Moreover, rail investment induced a shift in the transportation method in favor of rail transport, which is allegedly regarded as more energy efficient. The saving of CO2 emissions is a product of this shift. Understanding potential economic and environmental impacts contributes to confidence and rationale for rail investment.