There are different reasons why roads are increasingly congested, such as the following. First, the real costs of driving reduced because motor cars tend to be cheaper than they used to be, if to take inflation rates into account. Public transport is seen by most people as their inferior good, meaning that as their income increases, they switch away from it. Modern roads are common property resources, so people are free to use them with only a few minor restrictions.
Besides, the fixed costs of buying cards, including its price, tax, insurance, and other expenses, encourage people to use cars as often as they can. Information failures have a great impact on the driving amount because most drivers have no idea on the negative influence of the current amount of driving. They need to realize that the road space is a scarce resource, meaning that the more they use it, the less available it’s for others.
When discussing this concept, policy makers view roads, which were a public good in the past, as a private good that can be charged for. That’s why new technologies are applied, including GPRS, to create fresh systems to charge people for using the road space. The problem of road congestion is associated with a range of external costs, such as extra travelling time, increased percentage of more accidents, increased business costs, increased pollution, including noise and air, putting more stress to cyclists, drivers, pedestrians, and passengers, and emergency services, such as fire engines, police cars, and ambulances, find it more difficult to function properly.
There are different causes that lead to the problem of road congestion, and it’s assumed that the demand for the road space will reduce with increases in prices. The good news is that there are available solutions to this problem, including reducing people’s demand, increasing prices, and increasing the supply of the road space. The latter solution can be initiated by the government by building more roads, but with more roads, drivers will be encouraged to drive more. In addition, there are incredible building costs involved and it takes a long time to plan and make them available, so it won’t happen overnight. People’s demand for the road space can be decreased in a few possible ways, such as reducing their car ownership and car usage by raising fuel taxes and using other methods.
There are different reasons why roads are increasingly congested, such as the following. First, the real costs of driving reduced because motor cars tend to be cheaper than they used to be, if to take inflation rates into account. Public transport is seen by most people as their inferior good, meaning that as their income increases, they switch away from it.