Estimating the economic cost of traffic in Malta

Abstract

This study attempts to quantify the cost that traffic congestion is imposing on the Maltese economy. This is firstly done by deriving a monetary value based on the time delays of journeys experienced by motorists and the average hourly wage. To carry out such an investigation a sample of nine representative roads are considered. Traffic data records on these roads are obtained from MEPA and TM and congestion was established when road demand exceeds supply. Bearing in mind certain assumptions and limitations of the methodology, this part of this study estimates a tangible monetary figure (in millions of euro) associated with the cost of traffic in terms of time wasted alone. The second part of this paper engages in an environmental impact assessment of externalities imposed by traffic congestion. Particularly examined are the vehicular air pollutants' levels in the localities where the nine roads reside. The objective is to link air quality with the occurrence of heavy traffic as observed in the previous part of the study. Heavily demanded (congestion prone) areas are found to correspond with lower air quality levels while the incidence of noise, traffic accidents and adverse health effects (respiratory disease) are also found to be correlated with congestion conditions. Both sections of the study involve a quantitative and qualitative analysis. However the second part, dealing with externalities imposed by traffic, is intended more to strengthen the argument that the monetary value derived as a cost of congestion is seriously understated. Therefore this paper aims at highlighting the fact that traffic is critically burdening the economy on multiple levels.