![]() ![]() ![]() Faster highway speeds that result from highway capacity expansion also create incentives that alter commuting patterns. Some increase carpooling or switch to mass transit, even though these transportation options are less convenient. Some people purchase vehicles that get more miles per gallon. For example, when gasoline prices rise, people change their behavior and reduce their gasoline consumption. What Lies Behind Induced Travel Demand?Ī key principle in economics is that people respond to incentives. One of the options explored is variable pricing. It begins by reviewing the existing literature on this topic and concludes with policy recommendations that explore better ways to address congestion. This Research in Focus piece explains why highway expansion has, at best, only a limited impact on congestion. 2 Anthony Downs, “The Law of Peak-Hour Expressway Congestion,” Traffic Quarterly 16 (1962): 393–409. This behavioral response is referred to as the fundamental law of congestion, also known as induced travel demand. These behavioral adjustments tend to make congestion relief temporary. DOWNS LAW OF PEAKHOUR TRAFFIC CONGESTIOON DRIVERSThe primary reason why additional highway capacity fails to make a lasting, significant dent in congestion is that, as highway capacity increases and driving travel times fall, more drivers are attracted to the highway. While highway expansion increases the volume of vehicles that can travel on the highway, which benefits the community, it does a poor job of controlling congestion. These figures are in constant 2014 dollars. 1 David Schrank et al., 2015 Urban Mobility Report (Texas A&M Transportation Institute, 2012). By 2014, that figure had grown to $160 billion, a 72 percent increase over the period. In 1996, congestion cost Americans $93 billion in wasted time and fuel. Despite these efforts, congestion continues to worsen. The most common policy responses to congestion issues are to expand highway capacity and to spend more on public mass transit systems. Most cities in the United States face serious highway congestion problems. The extent to which these advantages are realized hinges on a transportation system’s level of congestion. All of these benefits help to promote greater economic activity and higher living standards. A well-functioning system expands job options and enables businesses to move goods in a timely and efficient manner, lowering business costs. A transportation system provides mobility for a community’s residents. ![]()
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