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December 2020 Pp.10-21 ISSN 2690-0866(Print) 2690-0874 (Online) Website: E-Mail: [email protected] Doi: 10.48150/Jbssr.V1no12.2020.A3

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December 2020 Pp.10-21 ISSN 2690-0866(Print) 2690-0874 (Online) Website: E-Mail: Editor@Jbssrnet.Com Doi: 10.48150/Jbssr.V1no12.2020.A3 Journal of Business and Social Science Review Issue: Vol. 1; No.12; December 2020 pp.10-21 ISSN 2690-0866(Print) 2690-0874 (Online) Website: www.jbssrnet.com E-mail: [email protected] Doi: 10.48150/jbssr.v1no12.2020.a3 ESTIMATION OF THE ECONOMIC COST OF TRAFFIC CONGESTION: A CASE STUDY OF A MAJOR ARTERIAL IN KANDY, SRI LANKA Kanishka Werawella Department of Economics University of Colombo, Sri Lanka E-mail: [email protected] Acknowledgement This study was funded by the Saman Kelegama Memorial Research Grant – 2019 of the Institute of Policy Studies of Sri Lanka (IPS). Specifically, I would like to thank Dr. Athula Senaratne for giving me the wonderful opportunity to complete this research under his supervision at IPS, it was truly an honor. Abstract In most of the developing countries, traffic congestion prevails in major cities and suburbs is identified as a pervasive concern which has a number of adverse impacts. Sri Lanka is no exception to this norm and most of the major cities in the country are significantly affected by the traffic congestion incurring an enormous economic cost. Against this backdrop, this study aims to examine the economic cost of traffic congestion in Kandy city and potential root causes. The study focuses on the dynamics of the people who enter to Kandy using the Kadugannawa to Kandy route by collecting primary data based on the random sampling method. Estimates indicate that travel time cost and vehicle operational cost of Kadugannawa to Kandy per day is LKR 11.7 million and LKR 4 million respectively. The study also provides quantitative evidence to support the popular claim which states that the higher usage of private vehicles is the major factor for traffic congestion. Based on these findings, this study argues that in the event of improving public transport is allowing a significant reduction of traffic congestion, thus minimize the economic burden on the national economy. Key Words: Economic Cost of Traffic Congestion; Kandy; Traffic Congestion; Travel Time Cost; Vehicle Operational Cost Introduction Massive traffic congestion can be identified as the most visible and pervasive transport problem plaguing the major cities of developing countries on a daily basis where Sri Lanka is not an exception (Kumarage, 2019). When the economy reaches greater development levels with higher per capita income, subsequently vehicle population increases (Kumarage, 2019). As Goodwin (2004) emphasized, the main cause of road traffic congestion is that the volume of traffic is too close to the maximum capacity of a road or network. The traffic congestion tends to prolong, hinder, and is unfavorable to many economic activities (Ali et al., 2019). Further, several externalities such as air and noise pollution and adverse health impact make the situation more complicated and serious. When all these conditions are taken into account, it is prominent that traffic congestion creates an alarming impact on all the living beings and the national economy hence should be tackled immediately. According to data from the Department of Motor Traffic of Sri Lanka, the number of buses has increased by 38 percent, while the other vehicle population has surged by 141 percent from 2008 to 2019. Busses have increased at an average annual rate of 3 percent while other vehicles increased by 8 percent. Furthermore, the contribution of buses to the total vehicle population was 2% in 2008 and this declined to 1% in 2019. All this shows that there is an over-reliance on private vehicles and under-reliance on public transportation. Kandy, one of the main cities in Sri Lanka is subjected to this severe traffic congestion daily and Jayatilaka (2003) revealed, 331000 passengers enter the city daily and 69 percent of them travel by bus while only 31 percent use other modes of transport. 10 Kanishka Werawella Doi: 10.48150/jbssr.v1no12.2020.a3 But, the contribution of buses and other modes of transport for traffic congestion are 14 percent and 86 percent respectively which highlight the massive usage of private vehicles. The increasing vehicle population growth coupled with high-intensity urbanization makes the traffic condition worse in Kandy city. Additionally, limited area, topographic features, location of major institutions such as hospitals, schools, railway stations, and bus stand, etc., massive private vehicle usage, and weak Public Transport (PT) make the traffic congestion worse in Kandy (Jayathilaka, 2003). On that account, it is essential to estimate the cost of traffic congestion by considering all the important factors. Mainly traffic congestion incurs substantial financial loss not only to the individuals but also to the entire economy due to the massive wastage of fuel coupled with vehicle depreciation. Contrastingly, high delay time due to traffic congestion increases the greater opportunity cost to individuals hence, national economy aggregately. Given the factors, financial cost analysis is insufficient to provide insights hence, the economic cost of traffic congestion should be estimated to investigate the real loss to the national economy. Figure 1. Total Vehicle Population 9000 120 Other vehicles 8000 Buses 100 7000 6000 80 5000 60 4000 3000 40 Number of of (000')Busses Number Number of (000')of Vehicles Other Number 2000 20 1000 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Note. Department of Motor Traffic of Sri Lanka Research Objectives General objective of this study is to estimate the cost of traffic congestion in Kandy city. The study has four specific objectives, 1. Identify the essential cost attributes related to cost of traffic congestion in Kandy city. 2. Estimate the cost of traffic congestion in Kandy city by taking identified cost attributes into account. 3. Identify the major root causes for the cost of traffic congestion 4. Identify feasible policy recommendations to mitigate the traffic congestion in Kandy city. Location As previously mentioned, this study is conducted to estimate the cost of traffic congestion in Kandy, Sri Lanka. Kandy has main three corridors to enter the city namely, Peradeniya to Kandy, Katugasthota to Kandy, and Thennekumbura to Kandy. Peradeniya to Kandy corridor can be divided into two parts, which are Kadugannawa to Peradeniya and Gampola to Peradeniya. In this study, the author attempts to estimate the cost of traffic congestion from Kadugannawa to Kandy which is the main corridor to enter the Kandy from the capital of Sri Lanka, Colombo. As Kandy city is located in the middle of the country, it instinctively acts as one of the major transport hubs in the country. Hence, several types of journeys take place throughout the city for various purposes. 11 Journal of Business and Social Science Review Vol.1; No.12; December 2020 Further, Kadugannawa to Kandy corridor is not only an entrance to the city but also a hub that gives access to several other cities such as Nuwaraeliya, Badulla, Bandarawela, Ampara, Mathale, Kurunagala, Dambulla, etc. Therefore, Kadugannawa – Kandy corridor can be considered as one of the most important and the busiest corridors to enter the Kandy and thus, needs immediate attention to the problem of traffic congestion. Figure 2. Route from Kadugannawa to Kandy Note. Google Maps Materials and Methods Sources of Data This study is entirely based on a cross-sectional design, which uses both primary and secondary data.In order to collect primary data, face-to-face interviews were conducted based on a structured questionnaire including both the close-ended and open-ended questions. The questionnaire contains three sections which include socio-demographic questions, ability to pay questions and questions related to the cost of traffic congestion estimation. The survey was conducted within the period of 12th October 2019 to 20th October 2019 and the sample was selected based on the random sampling method. Ten “GramaNiladhari”1(Village Officer) Divisions were selected from Kadugannawa Urban Council. The selected “GramaNiladhari” divisions were Kadugannwa Town, Panabokka, Urapola, Pilimathalawa, Madarangoda, Kadawathgama, Kandangama North, Ilkuwaththa, Govindala, and Urapola. Further, 389 respondents were selected from the electoral lists of respective GramaNiladhari Divisions according to the random numbers generated by Microsoft Excel. Secondary data was also utilized to fulfill the objectives of the study. Mainly traffic data of Kandy city such as Average Daily Traffic and contribution of each vehicle type for the traffic were obtained from the Road Development Authority of Sri Lanka (RDASL). In addition, findings of previous transportation and traffic studies of Kandy city were used as sources of secondary data for the calculations. Estimate the Cost of Traffic Congestion Even though the different studies employed different cost attributes to estimate the total cost of traffic congestion, Travel Time Cost (TTC) and Vehicle Operational Cost (VOC) have been taken by all the researchers into consideration as main elements (Khan & Islam, 2013; Shoaeb., 2016). In this context, the author attempts to estimate the following Total Traffic Congestion Cost (TTCC) function, TTCC = TTC + VOC (1) Various studies have adopted several methods to estimate traffic congestion. This study adopts the following formula (Ali et al., 2014) for the TTC estimation. 푚 TTC = 푚=1(푉푂푇m × Delaym× Vm× Voccm) (2) 1 Smallest administrative unit of Sri Lanka 12 Kanishka Werawella Doi: 10.48150/jbssr.v1no12.2020.a3 Where, OC = Opportunity Cost of traffic congestion,
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