How can the problem of traffic congestion be reduced?

How Can The Problem Of Traffic Congestion Be Reduced ?

As an economic area develops and prospers it is likely that there will be an increase in the volume of traffic within that region. Although the growth of business enterprises does provide many benefits such as an increase in employment and greater choice there are also costs/externalities to take into account.

An externality is often seen as a third party effect by the deliberate actions of an individual. As a result of business growth a number of positive and negative externalities arise. Positive externalities would include increased trade to an area and therefore the town centre would become more prosperous.

However growth can also carry negative externalities such as increased levels of environmental pollution, or increased levels of congestion. Congestion is regarded as a negative externality due to the fact that motorists only take into account their own private costs like their petrol and personal insurance. They d...