FINAL TO FOLLOW - Measuring The Economic Costs of Traffic Congestion
FINAL TO FOLLOW - Measuring The Economic Costs of Traffic Congestion
FINAL TO FOLLOW - Measuring The Economic Costs of Traffic Congestion
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adequate to curtail the growth of traffic volume [4]. The result II. LITERATURE REVIEW
has been a relentless increase in traffic congestion. Thus, it is Research on Economic costs related to traffic congestion
important to estimate the economic value of traffic congestion was carried out by number of researchers using difference
in Sri Lankan context which will help policy decision making techniques/ methodologies. This paper presents a widespread
in resource allocation in road infrastructure investment. review of the literature on measuring the economic costs of
road traffic congestion. Especially those literatures can be
According to experts, in peak hour traffic flow speed in
categorized according to data collection methods,
Colombo city limits to sub urban cities has reduced 28kmph to
methodologies that used to approach the context, evaluation &
9kmph in 1997-2001[5]. In addition, peak hour traffic flow
data analysis method, indicators considered, and errors
speed within city limits has reduced 32kmph to 6kmph. It is a
mitigation methods.
common situation for most road networks in urban centres.
The following formula was adopted to calculate traffic
Furthermore, though express ways provides travel up to
100kmph speed, when inbound/ outbound from urban regions congestion cost [6].
vehicles spend more than 2 hours to travel 20 km. Acceleration
& deceleration of vehicles lead to increase in operating costs in OC = ∑m (VOTm × Delaym × Vm × Voccm) (1)
m=1
terms of fuel, tires and brakes. Similarly, the sound effects of
road traffic congestion, safety, discomfort and unreliability of Where, OC = Opportunity Cost of traffic congestion, VOTm =
the journey and more importantly the time costs to commuters, Value of time for specific mode m, Delaym = Travel delay in
low level utilization of vehicles and interruptions to the freight unit time observed for mode m (estimated at some reference
flow are major costs of traffic congestion.. speed), Vm = number of vehicles of type m per day, Voccm =
Average vehicle occupancy for specific mode m.
Traffic congestion makes both public commuters and
private motorists spend additional time on the roads, paying VOC = L × ∑mm = 1 (FCm × Delaym × Vm ) (2)
extra for fuel. As the number of automobiles on the roads
increases it takes ones journey lengthier and need to spend Where, VOC = Vehicle Operation Cost, FCm = Fuel cost
more time and cost to reach the destination. Sri Lanka has now Rs/hr for specific mode m, and L = length of stretch in km.
become a county using 21% percent of fuel for transportation
while other neighbouring countries use less (India 7%, FCm = ∑3 (FcqFt × FpFt × µFt ) (3)
Ft = 1
Thailand 16% and Malaysia 19%). Most important fact is that
this percentage has doubled within past three years. Therefor it Where, Fcqm = Fuel consumption quantity in litres/km (or
is good indicator to measure the level of efficiency of a Kg/km) of mode m, FpFt = Fuel price of specific fuel types Ft
national transportation system. = 1, 2, & 3 such as CNG, Gasoline and Diesel respectively in
Rs/litres or Rs/kg. µFt = proportion of specific mode type m
A. The scope of the research using a particular fuel type for travelling on that road section.
The scope of this research is to examine ways of Here, the calculations are carried out separately for difference
estimating the economic costs of road traffic congestion in Sri mode of transport in the traffic stream and the Opportunity
Lankan context. The purpose of the research is to provide Cost of traffic congestion and the excess Vehicle Operation
economic criterion for empirically measuring the congestion Cost are can separately evaluate. This is ensuring high
cost. accuracy of the output.
This study focused on measuring congestion cost on public
Data analyse used in this paper includes the following
passenger transportation in Galle corridor, a major highway of
benchmarks [7],
Sri Lanka. The study covers the value of congestion delay for
• Traffic Flow Volume Analysis
personal travel including occupational and commercial trips.
• Key Roads in Order of Congestion Level
• Traffic mix distribution
B. Research Objectives • Field data (Primary data) analyse
• The Main Objective of the paper is to propose an The researchers have used descriptive statistics of simple
analytical method to measure economic cost of traffic averages to analyse primary data. The study on influence of
congestion related with passenger transportation. The the transportation system in Kumasi on Driver’s Productivity
study achieves the main objective with the help of few analysed according to trip classifications [7]. The anticipated
secondary objectives. They are, and the actual number of trips and income have been analysed
o Propose an analytical method to calculate Value of in this research.
Time (VOT)
The following three curves have been used in evaluating
o Propose an analytical method to calculate Additional
economic cost of traffic congestion [8].
Fuel Consumption (Operation) Cost (Vocc)
• Supply–demand shifts in response to transportation
• Examine current economic efficiency level of road
investment
passenger transport facilities of Fort to Moratuwa section
of the Galle corridor • Hypothetical bid-rent curve
• Conceptual marginal and average travel costs during
congested conditions
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It is shows that road traffic congestion reasons first-order also reliable as it accounts for different mode of transport
delays and inefficient commuting times. But, these separately. As different modes of transportation separately
approximations of cumulative economic impact rely on considered, the analysis for bus, trishaw & motor cycle
valuing the opportunity cost of travel delay. passengers were carried out using willingness to pay (WTP)
There are six steps have been used in congestion cost values, method 1, with the objective of deducing travel time
estimation process [9],[10]. First three steps represent (save the travel time). Other data on passengers those who use
measurement of traditional user impacts (Trip data, Travel cars/vans were analysed using a strategic method (SM),
time and distance data & User travel cost calculation). These method 2, additionally to the willingness to pay values. In the
are additional time and expenditure suffered by users as a strategic method, the interviewee were asked about whether
result of traffic congestion, and mitigation of those user costs vehicle is leased one or not, car type, the leasing institution,
is reflected to be the primary transportation system the monthly leasing payment amount which they obliged to
productivity benefit of transportation volume upgrading pay and the number of members in the family. These data is
projects. Other three steps represent measurement of nonuser useful to derive the average income of a person in the sample.
economic impacts (Total unadjusted business cost calculation,
Activity data, Statistical estimation). These are changes in IV. RESEARCH FINDINGS
business costs or revenue subsequent from changes in wage
compensation, scheduling, logistics, and market-scale A. Transport system in Galle corridor
economies as a consequence of changes in traffic congestion The Galle road corridor comprises of only four lanes to the
density. both directions which caters bidirectional vehicle traffic
volume of 67,600 vehicles. Among them 3790 are busses
III. METHODOLOGY which cater 80% of the road passenger volume. In terms of
A road section of Galle corridor (A2), (Moratuwa to Pettah) physical geometry, the width of some sections of the road is
is selected as the data collection point for this research. It is the narrowed up to 20m in the Galle corridor which has increased
main gateway to Colombo from the Southern parts of the the peak hour vehicle traffic up to 2900 PCU and reduced the
country and is a highly demanded section for daily commuting average speed up to 13kmph. The peak hour average bus load
that also integrates various modes and services of factor is 101% which caters approximately 41% of the total
transportation to cater the daily definite requirements of bidirectional passenger demand. Current traffic plan in the
commuters. Currently there is a huge traffic flow in Galle road Galle corridor has been effective to a certain extent by
during the peak hours and it is directly causing a higher introducing one-way traffic in the parts of the road/sections.
economic cost of congestion. Nevertheless, arguably the cost of the additional distance
travelled by the vehicles outweighs the benefit earned by the
time saving. It is also found that in most instances
A. Data Collection inefficiencies of the utilization of current road space have
Primary data was obtained from a socio economic survey adversely effected to increase congestion and lead to passenger
that was conducted in the Galle corridor. The socio economic discomfort. The discipline of the bus drivers is also in a very
survey includes data related with commuters’ travel distance, unappreciable condition leading to major accidents and
travel time, working hours, willingness to pay values for saving congestion. It is identified approximately 60 bus routes using
travel time (if the speed doubles) and from private transport the Galle corridor. Feeder bus system also shows grave
mode users, fuel consumption quantity of the vehicle & the inefficiencies in transferring the passengers to the main busses
vehicle leasing payment related data were obtained. Those data running in the Galle corridor.
were used to analyse the value of time of daily commuters,
travel distances, average peak & off-peak travel speeds and B. Estimation of Economic Costs of Traffic Congestion
average vehicle fuel consumption quantities. The survey was
conduct for both public and private transport mode users. The a) Vehicle user’s data analysis of Galle corridor
survey on bus passengers was conducted during morning peak Western Province modal share is shown by Table I. & the
hours and included randomly selected 30 of daily bus number of passenger data are shown in Table II. According to
commuters as a sample. The survey on private vehicle users statistical data available in the Department of Census and
consisted of a randomly selected sample of 30 for each mode Statistics, population growth in Sri Lanka recorded from 2014
of private transport. to 2016 is 0.19%. If the number of passenger growth has same
value, the average number of passengers for 2016 can be
Secondary data was obtained from Vehicle counts and bus predicated.
data received from the Bus Rapid Transit (BRT) surveys
conducted by the Department of Transport & Logistics TABLE I. WESTERN PROVINCE MODAL SHARE
Department, University of Moratuwa on the 4th Sep 2014.
Vehicle type Modal Share
B. Data analysis method Bus 48.1%
Train 3.4%
Collected data was analysed using MiniTab and MS Excel Car/van 14.3%
for generating descriptive statistics. A formula derived from Motor cycle 17.9%
literature was used to calculate economic value of time loss 3 wheelers 16.3%
a.
due to traffic congestion with high accuracy. The method is Source: ComTrans JAICA(2014)
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TABLE II. GALLE CORRIDOR PASSENGER DISTRIBUTION
Veh. Type Pax. (2014) Pax. (2016)
Motor cycle 19,949 19,987
3 wheelers 21,823 21,864
Car/Van 33,802 33,866
Bus 119,016 119,242
limit with respect to land vehicles, motor tricycles, motor Fig. 4. Vehicle Fuel Consumption variation with speed
tricycle vans and special purpose vehicles operating on the
segment of the built-up roads are specified to 40kmph. All Fig. 4 describes the relationship between fuel consumption
other road segments in Sri Lanka which are not specified in of the engine and the average speed of an automobile. The
the schedule to these guidelines are known as “Non-Built-up graph is divided into four zones, parallel to four speed ranges,
areas”. The speed limit relevant to the road segments of the When considering these figures in relation with Galle road
Non-Built-up areas is 70kmph for all categories of condition, as shown in Fig. 2 & 3 the design speed varies
automobiles and 60kmph for all motor coaches and lorries. between 40kmph to 70kmph and the actual speed varies
In this research considers only those regulated speed limits as between 0kmph to 40kmph. Therefor reduction in speed
the maximum utilized speed (design speed) of road sections. influences to increase fuel consumption approximately from
The observed average peak and off peak time are used to 16.66 km/l to 12.5 km/l. This means reducing 24.96% of fuel
calculate average peak and off peak speeds. Comparison of economy of the vehicle for a driving distance (km) for a fuel
these design speeds and actual speeds are represented by the litre.
following Fig. 2 & 3. Table IV. presents the estimated values for fuel
consumption quantity of each different modes of transport. ‘µ’
factors denote proportion of each modes of transport
according to the fuel type. ‘µ’ factors are calculated using
statistical data available in the Department of Motor Traffic,
Sri Lanka.
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c) Value of Time Analysis TABLE VI. ANALYSIS RESULT FOR THE OPPORTUNITY COSTS
TABLE V. ANALYSIS RESULTS FOR THE VALUE OF TIME Mode of transport Opportunity Cost (Rs. Mn.)
Bus 3.12
Mode of transport Avg. Value of Time (Rs. / Hr.)
Car/Van (WTP) 78.59 Motor cycle 0.21
Car/Van (SM) 291.51 Three wheeler 0.22
Bus 28.56 Car/Van (WTP) 2.00
Motor cycle 38.10 Car/Van (SM) 7.40
Three wheeler 101.17
TABLE VII. ANALYSIS RESULT FOR EXCSS FUEL/OPERATING COST
Value of Time of passengers in buses, motor cycles and Mode of Excess fuel Cost/ operating
three wheelers were estimated using additional willingness to Transport cost (Rs. Mn.)
pay values, if they are provided infrastructure Bus 4.73
facilities/transport services to travel with a speed twice as the Motor cycles 0.10
to the existing driving speed. Hypothetical relationship with Three wheelers 0.03
this scenario is that, when commuters can travel with a higher Car/Van 0.65
speed, they can save additional money which is now spent as
fuel/operating cost & value of productive time loss. In this Using the (1) the opportunity costs are calculated. Results
research we assume that the willingness to pay values is equal are as shown in in Table VI.
to the values of these cost factors. Using the (3), the Fuel cost (Rs. /km) (for the bus operation it
is used average operating cost) is estimated. Using fuel cost
The Value of Time of car/van users are estimated using a values and the (2), the excess fuel (operating) cost was
strategic method in addition to the willingness to pay values. derived. The analysis results are shown in Table VII.
In the strategic method, interviewee were asked financing
method of the vehicle, that is whether the vehicle is leased one
D. Comparison of economic cost of traffic congestion
or not, leasing/financial institution, car type, the monthly
leasing payment which they obliged to pay and the number of Vehicular traffic congestion has directly impacted on
family members. A financing organization deciding a car workforce productivity levels and the fuel consumption. In
leasing premium for a person considers number factors such as this research economic values for traffic congestion to assess
Monthly income (Salary script of last 3 to 6 months), Average the potential impacts were estimated. Table VIII. shows a
monthly expenditure of the family, other income of the family comparison of economic cost of traffic congestion in Galle
(Number of people who are doing jobs in the family), loans & corridor for each mode of transport separately. As for
leasing already taken and the age. Financial institutions opportunity cost of congestion, it represents the value of loss
basically provide a person 70% of the monthly income of the of productive time and the excess fuel cost. Excess fuel cost
family as loan/lease [11]. Assuming 50% of family members represents the cost for additional fuel due to traffic congestion
contributes to the family income and other loans (housing in Galle corridor (for the bus operation it is the additional
9.05%), the following (4) can be derived. operating cost). This research employed two methods to
analyse car/van passengers’ related data. However, the final
Average Monthly = (Monthly x 100 x 1 . (4) results of two methods show a higher variation. In the first
Income of the leasing 50.95 (# Family Members x 0.5)
method, commuters’ willingness to pay values represents how
Person payment)
they believe worth of their wasted time due to traffic
congestion. WTP method derived a lower value for VOT (Rs.
By dividing the average monthly income of a person from 2.65 Mn.). In the second method (SM), analyses their actual
the working (earning) time x number of working days of a worth of wasted time and the method help deriving the actual
month, the average value of time of a person can be estimated. value of economic cost from the traffic congestion (Rs. 8.05
Primary data analysis carried out and the results are shown in Mn.).
above Table V.
TABLE VIII. COMPARISON OF ECONOMIC COST OF TRAFFIC
d) Calculations of the Opportunity Cost of traffic CONGESTION IN GALLE CORRIDOR
congestion Car/Van Motor Three
(Rs. Mn.) Bus
Using the estimated average peak & off-peak speed, the WTP method SM Cycle Wheel
average time delay for each mode of transport can be derived Opportunity
3.12 2.00 7.40 0.21 0.22
Cost
from the (5). Excess Fuel
4.73 0.65 0.65 0.10 0.03
Cost
Time Delay = Travel delay in time units Total Cost for
7.85 2.65 8.05 0.32 0.25
= Total Distance Total Distance (5) Day
Average Actual Speed Average Design Speed Total Cost for
2865.25 967.25 2938.25 116.80 90.16
Year
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V. CONCLUSIONS Fig. 6 & 7 present mode-wise annual total economic cost
Sri Lanka is a country suffering from severe traffic of traffic congestion variation for the selected road corridor.
congestion mainly in urban centres. Traffic congestion has led Higher percentage of annual traffic congestion cost is born by
to greater losses in the national productivity. Increasing bus transportation & car/van transportation.
population in the urban areas and, as a result, increasing their
mobility needs via public and private transport modes coupled B. Limitations of the Study
with insufficient infrastructure, poor traffic control, complex Research uses secondary data (vehicle counts) taken from
land use pattern, hazardous driving behaviour and high density the year 2014. However, the primary data collected by travel
of road users create heavy congestion in urban roads, costing time surveys are from the year 2016. To tally passenger
more to the society in terms of longer commuting times capacity for year 2016 the population growth rates of Sri
(reducing workforce productivity), excess operating (fuel) Lanka between 2014 and 2016 was adopted. It is also assumed
costs. The personalized transport modes and the informal that the traffic density growth of the selected corridor for the
sector such as cars/van, three wheelers and motorcycles are analysis is 1.5% with respect to the year 2014. Those
significantly contributing to this congestion. Metropolitan assumptions might reduce the accuracy of the final numerical
transport system is a critical feature that may expedite and limit
results. However, the methodology of congestion costs
urban economic growth depending on the degree of its
management for effectiveness and efficiency. estimation remains unaffected. In addition, in calculating
VOT, the upper boundaries of speed limits were considered as
A. Summary of the Findings the design speeds of each road section.
The growth of vehicles per 1000 people has risen from 171 Furthermore, it was assumed that a person can allocate
to 305 between 2008 and 2016 in Sri Lanka. The alarmingly 60% from the monthly total income of the family for the
the bus to private vehicle ratio is 1:11.37 meaning that 91.92% purpose of loans & leasing in the calculation of income of
of private vehicles in operation and shared the road space with commuters
public transport in the selected urban corridor. Nevertheless,
ACKNOWLEDGMENT
in term of bus passenger capacity to private vehicle ratio is
1.6:1 that means additional 61.16% of passengers are catered I also take this opportunity to express my deep regards and
by public bus transportation. This indicates that personalized gratitude to the academic staff of the Department of Transport
transports significantly contribute to the traffic congestion & Logistics Management for giving all kinds of supports,
making significant losses to the economy. Fig. 5 shows the advices and comments on the research work and allowing us
comparison of daily opportunity cost, excess fuel (operating using department data in this research.
cost) & total cost of traffic congestion.
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Fig.6 Annual Total Traffic Fig.7 Annual Total Traffic
Congestion Cost Variation in Galle Congestion Cost Variation in
Corridor (Using WTP method) Galle Corridor (Using SM)
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