Cost estimates for road congestion in Delhi: projections and recommendations

Motivated by concerns due to rapidly growing vehicular congestion in Indian cities, we conduct a preliminary investigation into the economic costs of congestion in Delhi. In particular, we estimate the marginal and the total costs of congestion in Delhi. In estimating 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 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.