External cost of rail transport : An update of marginal damage cost estimates – 2025

This report updates the estimates of the external costs of rail transport—that is, the damage costs associated with emissions, noise, accidents, and infrastructure wear. Although transport is essential to society, overall welfare can be improved when decisions take damage costs into account. The purpose of the report is to provide a stronger basis for policy decisions and cost–benefit analyses. The new estimates draw on data on fuel consumption, emissions, noise, accident statistics, and infrastructure wear, as well as new methods that yield more precise estimates than previously. We focus on marginal damage costs, i.e. the cost per train-kilometer. These vary substantially depending on whether the train operates in sparsely populated areas or in urban environments. In cities, where more people are exposed to noise and potential local air pollution from diesel trains, marginal damage costs are higher. Noise costs also vary by time of day, with significantly higher costs during the night. Since most train-kilometres occur in sparsely populated areas and during daytime, the results show that infrastructure wear constitutes the largest component of total marginal damage costs.