Economic Analysis of Congestion –A Case Study

Abstract: Economic cost of traffic congestion is one of the most discussed issues in an economy and time is our non-renewable resources, which cannot be regained if lost. Many people lose their job, life, money, and etc. due to delay which is associated with congestion. Also, traffic congestion creates more stress and difficulties for drivers, cyclist and pedestrians. This research paper aims to analyse the opportunity cost associated with the selected road stretch in the Palakkad city in order to quantify the intensity of congestion & the results obtained indicated that there is a considerable monetary loss due to delay during peak hours of the day.

Keywords: Congestion; Delay; Value of Time; Opportunity cost.