The paper "Road Traffic in London" is a wonderful example of an essay on macro and microeconomics. Traffic in most countries occurs when the traffic volume is close to the network capacity. Congestion in London has increased, and it would be appropriate for the government to implement projects and policies to tackle the issue. Traffic congestion is mainly caused when road traffic is growing at a faster rate than the drive capacity. The right measures should be put in place or else the problem will continue to develop due to the absence of the appropriate traffic requirements to reduce traffic.
Although transport systems follow the demand and supply theory, a small change in either the demand or supply has a direct impact on London’ s economy (Mankiw 2007). In London, roads are the main means of transport which has led to increased traffic congestion. This congestion results to slow speeds and a lot of vehicle queuing. Traffic congestion has resulted in road rages among drivers who cause a lot of frustration. Roads that are congested are a tragedy because the roads are occupied and not available for use.
Some of the proposed measures that may reduce congestion through economic disincentives and incentives are the privatization of highways and road pricing. Economically, congestion is also caused by the standard workdays which are unavoidable due to people having standard workdays. In London, traffic congestion has both positive and negative impacts on the economy. There is a loss of opportunity cost because passengers and motorists waste a lot of time on the road due to traffic. Congestion on the roads is not a productive activity for most people, and that reduces London’ s economic health.
Drivers are not able to predict their travel time accurately due to congestion, and that leads to drivers allocating excess time which means less time is allocated to the productive activities. Many businesses in London experience such delays that cause delayed employment and arrival to meetings. Positively, research in London shows that congestion results in minimized speeds for motorists which reduce road accident frequency. Congestion also encourages drivers to adjust their trips such that the expensive road space is used for man-hours in a day.
Congestion also indicates that a town is active and vibrant and that there is economic growth. Economic growth in London may be reduced by congestion because of the interference between employees and their jobs. Traffic congestion makes it difficult for workers to be matched to their occupations which results in economic inefficiency. Increased population in urban areas is one of the principal causes of traffic congestion since people move in from rural areas to work in cities (Giersch 1995). Increased population results in traffic congestion since people try to go around the city so as to get to work.
An effective solution to this problem is to have a ride and park schemes, the introduction of cycle lanes, congestion charging schemes, low emission zones, and carpooling. London tries to make the urban areas safer through the introduction of pedestrian zones, vehicle exclusion zones, and traffic calming (Spence et al. 2009). Another leading cause of traffic is that the cost of driving is low since petrol and cars are cheaper about inflation. The cost of owning a car has deteriorated, and that encourages drivers to use their vehicles often, and that leads to traffic jams when everybody brings their cars to the road.
Demand for road space decreases as the price increases because of the income and substitution effects of higher prices. Traffic jams also affect emergency services such as police cars, ambulances, and fire engines which make it hard for these services to function properly. Therefore, the demand for road space can be minimized through decreasing car usage or car ownership. There are many solutions for road traffic such as the increased supply of road space, and this is achievable through the building of more roads.
The government should work towards that so as to minimize vehicle overlapping. Increasing the fee required for obtaining a driver’ s license, raising the age limit for legislation, and driving passengers in cars are also other measures for reducing road traffic. Another appropriate solution is to introduce a road pricing system that involves charging the drive space usage. The congestion charge is expensive and revenues from fines charged are less than expected. However, the congestion charge raises income and the money collected can be spent on public transportation which increases the driving alternatives.
Following the introduction of a congestion charge, there are fewer vehicles on the road which reduces pollution and therefore creating a friendly and healthy environment for business people. Other solutions include legislation of passengers in cars, raising car taxes and fuel taxes, providing better public transport, and avoiding construction of parking routes. Most road networks in London are recognized because the transport departments have policies that are used to manage traffic congestion. The growing traffic congestion is among the main problems that affect London (Pearson 1999).
The transport department has concluded that such congestion might cost London’ s economy. According to Walker (2012), congestion levels on roads are affected by the physical interactions which take place from time to time. Strategies used to improve the road conditions also minimize the effects which are caused by road congestion. Reliable travel time decreases vehicle emissions and saves time and fuel. The reduction of congestion results to lower transportation costs and benefits. Improved reliability leads to predictable and consistent travel and passengers do not have to budget for extra time.
The reliability of travel time has a significant impact on the growth of an economy.
MANKIW, N. G. (2007). Principles of microeconomics. Mason, Ohio [u.a.], Thomson/South-Western.
SPENCE, M., ANNEZ, P. C., & BUCKLEY, R. M. (2009). Urbanization and growth. Washington, DC, Commission on Growth and Development.
WALKER, J. (2012). Human transit how clearer thinking about public transit can enrich our communities and our lives. Washington, DC, Island Press.
PEARSON, S. V. (1999). London's overgrowth and the causes of swollen towns. London, C.W. Daniel Co.
GIERSCH, H. (1995). Urban Agglomeration and Economic Growth. Berlin, Heidelberg, Springer Berlin Heidelberg. http://dx.doi.org/10.1007/978-3-642-79397-4.