Traffic Congestion Brendan and Regnars

How is Congestion Problematic?

Hinders cities ability to move goods efficiently in order to facilitate trade Optimal agglomeration size Shrinks Market Area for citys goods.

Transportation cost

Cost of a common input

Congestion Facts (U.S.)

Congestion levels in 85 of the largest cities have grown consistently (1982-2003). Travelers Average 47 extra hours a year on the road due to congestion (1993-2003). Peak Trips take an average of 7% longer (19932003).

Congestion Facts (U.S.) Cont.

Congestion Levels Over The Last 20 Years

See a consistent rise in congestion regardless of city size. Larger increase from 1982-1992.

http://ops.fhwa.dot.gov/congestion_report/chapter3.htm Texas Transportation Institute

U.S. Congestion Sources

http://ops.fhwa.dot.gov/congestion_report/chapter3.htm Texas Transportation Institute

Atlanta Example

Average Commute Time is 35.9 minutes. Average Commuter spend 57 hours a year in congestion (on top of normal commute time). Congestion Cost is Estimated at Three Billion in wasted time and fuel costs $1,157 per person

Congestion Facts (Worldwide)

London is the most congested city in Europe where the economy has foregone 2-4 billion pounds (3.2 6.5 billion dollars). 100 Km Traffic Jam in China over two weeks in August 2010 (A little over 62 miles). Sao Paolo, Brazil loses 316 million man hours of labor a year due to congestion.

Factors Affecting Congestion

Number of cars on the road There is a cost benefit analysis for each driver Each additional driver affects all other drivers. 2. Number of miles driven Urban Sprawl leads to longer commutes, cars on the road longer.
1.

Factors Affecting Congestion (Cont.)

Road Capacity Number of lanes and width of lanes can affect congestion 4. Peak Time Refer to times of day where people are more apt to drive. Rush hours as peak Early morning hours as non peak
3.

Road Pricing

Potential Policy Tools

1.

Highway Capacity Enhancement More lanes and/or wider lanes

Traffic would flow more freely, loosen congestion Necessity to use more land Very costly to add more lanes and maintain them Would encourage more people to use these roads Would create bottleneck effect

Problems:

2.

Gasoline Tax Would create incentives to carpool, use public transportation or make fewer trips. Problems:

What is the proper amount of tax put on gas? Demand for gas is very inelastic so it would take time to adjust

Policy Tools (Cont.)

3.

Congestion Tax Charge people during peak-times

More aware of costs they impose on each other by joining a road and impact on environment Diversity of people that use roads What is the best price to charge for using these roads? What is the best way to charge people (toll booths or something like easy pass)? Cost of new technologies to track and charge drivers

Problems:

Policy Tools (Cont.)

4. Limitation of License Plates would limit a number of cars allowed to register every year Problems:

It would take a long time to see any significant difference Who would qualify for these fewer license plates? Most people against it

Other strategies to improve traffic flow

Implementation

Dealing with public opinion Dealing with urban sprawl. Aiming policy at more elastic forms of transportation

What is the U.S. Doing?

City planners look toward highway capacity enhancement. May not be a viable solution as post WWII enhancements did not curb congestion. Signal Timing, Freeway metering, carpool lanes and transit reorganization have made modest effects.

Houston Example

Houston has adopted HOT (High Occupancy Toll) lanes to combat HOV lane inefficiency. Works to fill HOV lane space that is underutilized.

Cars are fitted with automatic toll transponders.

Closed during peak HOV lane hours.

What is Europe Doing?

Trans-European Public Transportation - Efficient city to city public transit Gasoline Tax Congestion Tax -London example Marco Polo I and II - Incentive to switch modes of transportation

London Example

Implemented a Congestion Tax in 2003. Had public support from the start. 8 Euro tax for everyone, with a few exceptions: Motorcycles, taxis, buses and disabled persons amongst others. Automobile congestion went down by 20%. Issues with traffic spillovers, fairness, loss of privacy and possible market losses.

Singapore Example

Electronic Road Pricing (Congestion Tax) Fully Automated, charges collected electronically. Central District charged from 7AM to 7PM Arterial roads and expressways from 7AM to 9:30PM. Electronic Transponder with Charge Card. Drop in weekday traffic by 24%.

What are Developing Nations Doing?

Congestion Problem is unique compared to the developed countries. Large number of non-motorized vehicles.

High quality urban arterial roadways coupled with poor quality secondary roads.

Modes of Transportation in China

http://policy.rutgers.edu/faculty/pucher/PUCHER_China%20Indi a_Urban%20Transport.pdf

Policy Examples

Chinese sales tax on small automobiles.

Beijing limits new license plates to 20,000 a month.

Potential Indian Congestion Tax using a Radio Frequency Identification (RFID).

Summary

If countries are smaller and have a higher population density it seems public transit is the best solution to curb traffic congestion. If countries are dealing with urban sprawl it seems that a congestion tax or some other form of road pricing would be best. For developing countries highway capacity enhancements and roadway improvements are best.

Work Cited

http://ops.fhwa.dot.gov/congestion_report/chapter3.htm Texas Transportation Institute. http://www.cleanaircampaign.org/For-the-Press/Press-Kit/Commuting-andTraffic-Congestion-Fast-Facts Atlanta Example http://www.london.gov.uk/who-runs-london/the-londonassembly/assembly_investigation/road-congestion-london London Example http://www.economist.com/blogs/asiaview/2010/08/great_chinese_traffic_jam China Example http://www.simbaproject.org/en/simba_regions/brazil/ Sao Paolo example http://www.metrosolutions.org/go/doc/1068/138186/ Houston Traffic Policy http://www.euractiv.com/en/transport/white-paper-transport/article-129628 European Traffic policy http://www.vtpi.org/london.pdf London Congestion Pricing http://ops.fhwa.dot.gov/publications/fhwahop08047/02summ.htm Singapore Example http://policy.rutgers.edu/faculty/pucher/PUCHER_China%20India_Urban%20 Transport.pdf Developing Countries http://www.chinadaily.com.cn/business/2011-01/03/content_11787438.htm Chinese lottery system http://www.trafficnetwork.in/news/49-tcc -Indian Road Pricing

Challenges Facing the Provision of Public Transit

Robert Martin and Cameron Weir

Public Transit

Public transit is a shared passenger transportation service which is available for use by the general public. Public transport modes include:

Buses Trolleys Trams and trains Subways Ferries

Goals of Public Transit

To maximize the mobility of people (specifically for those who have few other choices). To reduce traffic congestion. To reduce air quality problems due to fossil fuel use.

Statistics on Public Transit in the United States

In 1960, 69.5% of all commutes in America were done by private vehicle, while 12.6% of commutes were credited to public transit. By 2000, only 4.7% of commutes in America were on public transit, while private vehicles accounted for 87.9%. According to the Department of Transportation, in 2008 the number of miles traveled by vehicles in the United States fell by 3.6%, while the number of trips taken on public transit increased by 4.0%. U.S. residents took 10.7 billion trips on public transportation in 2008, reaching the highest level of ridership in 52 years.

United States v. the World

Public transit in the U.S. only accounts for about 4 to 5% of commuting. New York City is the one big exception:

54% workers commute by public transit About one in every three users of mass transit in the United States and two-thirds of the nation's rail riders live in New York City or its suburbs.

Hong Kong has the most used public transit system in the world, over 90% of daily journeys are on public transit Tokyo - 57% Barcelona - 39% Brussels - 26% Copenhagen - 20% Amsterdam - 16%

History of U.S. Public Transit

1830 - begins with the introduction of horse-drawn omnibuses and streetcars in Eastern cities; private operators were granted government franchises to operate their vehicles on specific routes Steam-powered railroads, intercity train systems 1876 - The nations first rapid transit: New Yorks elevated railroad Looking for cleaner alternatives, inventers turned to cable cars. First introduced in 1873, they came into prominence a few years later. Most cities soon scrapped cable cars in favor of electric traction. San Francisco, whose hills challenged electric streetcars, remains a visible exception. 1894 - New York voters approved a plan to build transit tunnels using public bonds, then lease the tunnels to a private operator, America has its first subway Early 20th c. - Affordable mass-produced automobiles, such as the Model T Ford, erupt onto the scene. By the mid-1920s, the transit industry spiraled downward, losing revenue and the ability to offer reliable, swift service Reformers believed that the solution was to redefine transit as a public service to be provided by publicly owned agencies or authorities

History of U.S. Public Transit

1912 - San Francisco launched its Municipal Railway 1938 - Public Utility Holding Company Act Switch from cable cars and trolleys to buses Post-WWII, with the rise of automobiles and suburbs, mass transit ridership dropped dramatically. Most American transit companies chose to abandon their streetcars and their high capital costs. Not wanting to lose mass transit altogether, city governments established publicly-owned transit authorities. 1964 - Urban Mass Transportation Act 1991 - Intermodal Surface Transportation Efficiency Act (ISTEA) 2008 - Saving Energy Through Public Transportation Act

Problems Facing Public Transit

Density in inner cities Urban sprawl/rise of the suburbs Automobile dependency in America Supply side/demand side stories Underpricing of driving

Density, Urban Sprawl, and the Rise of the Suburbs

The rise of the suburbs and the increase in urban sprawl that we have already discussed reduced the density of inner cities With less density in the inner cities, the available customers for any given transportation declines greatly, and as more Americans spread out from the city center, public transportation numbers plummeted.

Automobile Dependency in U.S.

The United States is the most automobile dependent country in the world In 2002, the average American household has more cars (1.9) than drivers for them (1.8)

Quic kTime and a dec ompressor are needed to see this picture.

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Demand for Public Transportation

Cost of ridership Actual fare Collection Cost Travel Time from home to the main travel vehicle Line-haul cost Time spent on the main travel vehicle Distribution cost Travel from the end of the vehicle trip to the workplace

Supply of Public Transportation

Transportation networks are subject to huge economies of scale (High fixed costs, decreasing average costs) Controlled and maintained by the Public Sector Would it be socially optimal for the government to increase the supply/make large scale improvements?

Modal Choice: Auto, Bus, or Heavy Rail?

Scale Economies and Transit Subsidies

Demand Side Policies to Promote Public Transportation

Force the driver to incur true cost of transportation 2011 Avg U.S. per gallon price: $3.53, Oslo avg. per gallon price: $9.28 Congestion Tax Charge a tax per mile Gasoline Tax- Per gallon tax to equate the costs of travel modes and force the commuter to incur the real costs of transportation

Demand for Mass Transit/Gasoline Prices

Supply Side Improvements

Collection and distribution time improve the bus or rail service to cut access time. Line-haul time Cutting line-haul time would inevitably be very costly. Would imply large and costly improvements to public transit systems

Benefits from Supply Side Improvements

Congestion Environment and health Increased mobility

Socially Optimal Outcome?

Clearly there are many potential policies to increase the use of public transportation When actually implementing these plans, policy makers need to carefully consider all the costs and benefits associated

The Creation of the Automotive Industry

Pranav and Carter

The Start of the Automotive Industry

-The Duryea brothers produced the first car in America in 1893. -Henry Fords first car was produced in 1896, which was called the Quadracycle. -The first major automotive companies were Oldsmobile and the Henry Ford Company.

-Fords moving assembly line and the creation of the Model T resulted in the beginning of mass car production.
-Ford overturned George Seldens patent on the road engine.

Le Corbusier
Le Corbusier Automotive City Planning Utilitarian Planning Chicago Space

LA and Houston
Car Centric Cities Houston Boom 1950s period + Air conditioning Ring Roads Common Planning technique Space = Parking Affordable Housing

New York/ Europe

European Cities + New York Older Not as affected by Car Expensive to drive in Reliance on Mass Transit Compact

Artificially Compact

Walking / Transit Oriented Portland, Oregon Public Health Climate Protection

Todays Global Auto Industry

The largest motor vehicle producing countries are; China, Japan, USA, Germany, and South Korea. The largest automotive makers are; Toyota, GM, Volkswagen, Ford, and Hyundai. Over 135 million registered automobiles in the US

Lobbying in the Automotive Industry

The Early Push for Car Industry Expansion

GM discouraged the use of trains through its ownership of a company Called National City Lines, which shut down the majority of trains in the 1940s and 1950s. GM later played a huge role in the National Highways User Conference and the Federal Aid Highway Act of 1956, which resulted the vast expansion of the highway system.

Recent Lobbying

Many government officials are hired by automotive companies at the completion of their terms to help ease government regulations. In the past two years GM and Chrysler have devoted significant resources lobbying against proposed increased fuel efficiency and safety standards. Fuel efficiency standards have a particularly large impact on luxury car companies such as Porsche and Land Rover, whose designs cater to things other than fuel efficiency.

Automobile Registration

Global Growing Not Recession Proof

Use of New Technology in Cars

Demands with New Technology

The average American car is faster, heavier, and bigger than those of the past. The average weight of a car 25 years ago was 3,200 pounds and is now 4,100 pounds. Beginning to see a significant increase in consumer demand for green technology.

US and European Car Industries

Struggles of the US Auto Industry in the 2000s

Began with increasing gas prices in 2005. Large potions of GMs, Fords, and Chryslers profits were generated by their SUV sales. GM finance division began making subprime mortgage loans. The three major US car companies were already in financial trouble prior to the economic recession in 2008. Turn to the government for help.

End of US Dominance

1) Toyota 2) Volkswagen 3) GM 4) Ford Chrysler -> Fiat Unions Slow to adapt Poor Quality/ Less Innovation