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  • Essay / Congestion Test - 560

    Congestion is defined as the increase in the number of vehicles joining the traffic flow, the travel times of all drivers making trips are increased, resulting in delays for all. (Hau, 1992) argue that in large cities in developed and developing countries, congestion is unrelenting during the peak period and often between peaks. It further points out that "as more vehicles join the traffic flow, travel times for all motorists making trips increase, resulting in delays from normal due to increased demand excessive”. Traffic jams are normally caused by weakness and incompetent use of the road. Hau shows that if a road authority levies economically efficient taxes for congestion, it is possible to make money on a road that can be profitable in urban areas in the long run because land rents are very high. Some of these implications of city congestion involve: 1. Labor costs. (Weisbrod, Vary and Trezy 2001) argue that congestion contributes to increasing firms' hiring costs and limits the effective size of the labor market. Thus, the change in congestion will not only affect...