Transport Economics Essay

Document Type:Research Paper

Subject Area:Business

Document 1

However due to the many factors which are part and parcel of the transporting industry there are a multitude of complications which arise affecting the various components of transport economics. However as will be further expounded in this report, there are other elements which as circumstantial to the implementation of transport economics. Among these factors are congestion, congestion pricing, environmental impact and pollution pricing, regulation, privatization and financing of transport economies. It is important to appreciate these elements and their impact from the transport economists’ perspective (Quinet and Vickerman, 2004). Transport Economics Introduction Transport systems are amenities that are utilized by the general public. Supply is part of the equation of transport economics; increased number of commuters traversing the state especially during the peak hours has put a lot of pressure on the already stretched public system.

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A spill over is experienced in the road system with most commuters being in a position to acquire and maintain their own private forms of transport. The effect of this is the traffic congestions observed. Furthermore the advent of technology has spurred the introduction of online taxi hailing mobile applications. From a layman’s point of view, the hailing applications may seem to reduce the number of private vehicles in the streets of New York. Proper implementation will promote innovation in the transport world where consumers will opt for efficient modes of transport that reduces congestion (Bliss, 2018). Regulation Since the transport sector is one of the most essential sectors of any economy, it require specific set of rules to govern how the various utilities will be used by all the players in the industry.

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Transport embargoes imposed on some countries negatively highlight the importance of transport in an economy as some economies fail due to these embargoes. Nonetheless it emphasizes the effectiveness of regulation. From a local perspective, regulation in the transport industry began in the 1870’s. On the other hand the airlines have specific price quotas for which practitioners must meet with upgraded service (Wood, 2018). Privatization and Financing Ownership and operation of transport infrastructure is one the main complexities of the transport sector which utilizes applied concepts of economics to a large scale. The case of ownership in especially in the American domain is somewhat paradoxical. A paradox brought about by the failure of both the government and the market. Failure by the government necessitated the participation of the private sector whereas extreme exploitation of by the private sector requires a balance by the government to ensure equity and equality.

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