The transportation system in Thailand has been biased in favor of road transport as investment in rail transport involves large scale budget and government policy. The favorable attribute of rail transport is more competitive freight cost in exchange for large investment. This study employs the computable general equilibrium (CGE) model in ORANI tradition (Dixon et al., 1982) as the tool for the accounting of economic benefits, economic cost, environmental benefits and environmental costs. The increase in rail transport investment is feed ...