Advantage And Disadvantage Of Urban Transport System
The benefits of an efficient urban transport system are many and varied. It is, indeed, a major contributor to economic growth, employment and competitiveness. However, the present transport scenario is far from satisfactory in most countries. Road traffic congestion has become a serious transport problem in most parts of the world. Increasing traffic delays have brought down travel speeds. Air pollution causes many serious diseases and accounts for thousands of deaths. These problems are compounded by the fact that in many cities there is a lack of funds to finance the maintenance and development of urban transport and road systems. Some adverse effects of the motor car are:
Road damage costs - Road damaging is basically caused by heavy vehicles as the damage to the road pavement increases to the fourth power of the axle load. Therefore road damage costs should be proportional to the damaging power so almost all costs should be paid by heavy trucks.
Accident externalities - Accident externalities arise when extra
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In the meantime area licenses could be sold for very congested zones, such as city centers. The advantages of road pricing are that:
It is a good instrument to use to internalize most of the external effects numerated above. Especially in the case of congestion costs, it appears to be the optimal method of internalization because a price mechanism would replace the present queuing mechanism which is allocative inefficient.
It reveals the true economic costs of the road use (including replacement costs) so that intermodal competition would become fairer. Because road prices would be primarily connected with congestion costs, some distributional and locational effects could arise. Costs of driving in non-urban areas would probably fall whereas urban driving costs would increase so that in the medium run, the quality of the public urban transport system would
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