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  • Essay / Congestion Test - 688

    Economic Implication of CongestionCongestion is a traffic delay condition caused by the number of vehicles trying to use the road that exceeds the capacity of the traffic network to handle them. Congestion is a major problem that is getting worse in many cities like Windhoek. In general, traffic jams delay travel to reach their destination on time as planned. We can consider implementing an urban toll to reduce this problem. The economic consequences of congestion are numerous and varied: Congestion leads to a loss of productivity. Businesses exist in cities where many people live, so they can sell or buy products and make a profit. Many businesses struggle to deliver their inputs or products for production on time due to congestion. They will fail to reach their wholesaler and customers at the time of product demand. Weisbrod, Vary, and Treys (2001) stated that traffic jams impose costs on businesses beyond the simple costs of vehicle and driver delays, including potential effects on inventory costs, logistics costs, reliability, just-in-time processing costs and reduced market areas for businesses. workers, customers and incoming or outgoing deliveries. Therefore, businesses may try to address the congestion problem in several ways, they may decide to move away from a particular city, or close operations, and some may move into smaller market areas where they have little access to labor, suppliers, and consumers.UnemploymentWhen production costs rise due to congestion, it forces businesses to raise the prices of their products. When prices rise, it leads to inflation, so workers demand high wages. This problem is forcing some companies to reduce their workforce, as they will no longer be able to pay their...... middle of paper ......stion, experts will not be on site on time, if at all. everything to explain the use of modern machines for example. For example, teachers will arrive late for classes or fail to attend classes due to traffic jams, so the level of education will remain undistributed within the country. For innovation, the government or highway controller would like to renovate the transportation network, but there will be no chance, otherwise the transportation system will be closed first. Thus, we will see cracks on the roads and boreholes, as well as railway blockages, goods traps. Traffic jams are not good at all, although they exist in some cities. This problem arises due to smaller road sizes and higher volume of transportation modes. It is very important to address the issue of future congestion in Namibia. The urban toll could be the solution, but it also has effects.