Congestion costs incurred on Indian Roads: A case study for New Delhi

TL;DR

This study analyzes the rising congestion in New Delhi, quantifies its economic costs including productivity loss and pollution, and projects significant future costs, emphasizing the need for intelligent traffic management.

Contribution

It provides a detailed estimation of congestion costs in New Delhi, including future projections and the economic impact of various factors, highlighting the importance of traffic management solutions.

Findings

Congestion costs in New Delhi are projected to reach $14.66 billion annually by 2030.

Productivity loss, especially from buses, is the largest contributor to economic costs.

Fuel wastage due to congestion is increasing, supporting the case for intelligent traffic systems.

Abstract

We conduct a preliminary investigation into the levels of congestion in New Delhi, motivated by concerns due to rapidly growing vehicular congestion in Indian cities. First, we provide statistical evidence for the rising congestion levels on the roads of New Delhi from taxi GPS traces. Then, we estimate the economic costs of congestion in New Delhi. In particular, we estimate the marginal and the total costs of congestion. In calculating the marginal costs, we consider the following factors: (i) productivity loss, (ii) air pollution costs, and (iii) costs due to accidents. In calculating the total costs, in addition to the above factors, we also estimate the costs due to the wastage of fuel. We also project the associated costs due to productivity loss and air pollution till 2030. The projected traffic congestion costs for New Delhi comes around 14658 million US$/yr for the year 2030. The key takeaway from our current study is that costs due to productivity loss, particularly from buses, dominates the overall economic costs. Additionally, the expected increase in fuel wastage makes a strong case for intelligent traffic management systems.