Congestion Essay

688 Words2 Pages

Economic implication of congestion Congestion is a condition of traffic delay due to the number of vehicles trying to use the road exceeds the traffic network capacity to handle them. Congestion is a major problem growing in many towns like Windhoek. In general congestion delays travel to reach their destination on time as planned. One can be thinking of implementing congestion charging to reduce to reduce this issue. There are many various economic implications of congestion as follow: Congestion causes loss of productivity Business exists in towns where many people live, for them to sell or buy products and make profits. Many businesses find it hard to deliver their inputs or products for the production on time due to congestion. They will fail to reach their wholesaler and customers at the time of the products’ demand. Weisbrod, Vary and Treys (2001) stated that traffic congestion imposes cost to businesses beyond the mere vehicle and driver costs of delay, including potential effects on inventory costs, logistics costs, reliability cost, just in time processing cost and reduction in market areas for workers, customers and incoming or outgoing deliveries. Therefore businesses may try to respond to the issue of congestion in many ways, they may decide to move away from such a particular town, or shut down the business and some may move to smaller market areas where they have little access to labours, suppliers and consumers. Unemployment When production costs increases due to congestion, this force firms to increase their products prices. When prices increase this lead to inflation, therefore worker demands for high salaries. This issue forces some firms to reduce their employees, because they will no longer able to pay h... ... middle of paper ... ...stion, experts will not reach out there on time, or at all to explain the usage of modern machinery for example. For example, lecturers will come late to classes or won’t attend lessons because of traffic congestion, so education level will remain undistributed within the nation. For innovation, the government or the road department controller would love to renovate the transport network, but there will not get a chance, or otherwise transport system will close first. So, cracks road and borehole will be seen, and railway blockage, freight traps. Congestion is not good at all, although it does exists in some towns. This issue raised because of smaller roads, and higher volume of transport modes. It is very important to address the issue of future congestion in Namibia. Congestion charge might be the solution, but it has effects also.

Open Document