Introduction
Transportation networks in cities make it feasible to connect various sources of production. People, land, labor, capital, and technology can all be connected through roads and airways because they make it easier for resources to move from one region to another. It is expected that the process will be quick, adaptable, and hassle-free when transferring goods, people, and information to the location of choice at an acceptable cost. Following the efficiency principle of the market, prices should appropriately represent the information that is readily available. The high levels of traffic congestion on highways, the rapid increase in the urban population, and carbon emissions from motor fuel factors that contribute to the phenomenon of global warming. As a result of these factors, urban transportation systems frequently fail to offer market efficiency.
Economic Theory Explaining How and Why Urban Transport Systems are Failing
A sustainable urban transportation system is one that, according to sustainable development theory, can meet both current and future transportation demands without negatively impacting the natural environment. Congestion of automobiles on urban roadways, which strains the limited space available, can cause a delay in the transportation of people and commodities from one location to another (Goetz, 2019). A lack of clarity results in wasted time that cannot be well utilized. According to the Paris Agreement on Climate Change, there are already 1 billion automobiles on urban roadways, which is expected to rise to 2 billion by 2040. (United Nations, 2019). The growth rate in the number of roads in metropolitan areas has been observed to be significantly slower than in the number of vehicles on those roads. The uneven growth of the two factors contributes to increased traffic congestion in urban areas.
The rapid growth of the urban population contributes to urban transportation networks’ inability to achieve efficient market outcomes. More than half of the world’s population now lives in cities, which is expected to rise to 60% by 2030 (Goetz, 2019). The limited number of available transportation options is becoming increasingly stressed as the population grows. As is customary, many people use roadways to get to work and transport goods and services. As a result of its low cost, high convenience factor, and ability to make efficient use of economies of scale, road travel is promoted as a viable mode of transportation (United Nations, 2019). On the other hand, road transportation can result in significant losses for the individual when serving a densely populated area. The rapid population growth in urban areas is causing competition for the limited available cars that provide transportation.
When motorists overcharge fare rates, the quality of service in some places that are underserved by appropriate carriers can suffer. There are not enough carriers in these areas. There are various sites where the price may increase if specific criteria are satisfied, such as a change in weather or an emergency. Motorists can take advantage of the situation to exploit passengers by charging exorbitant transportation fees (United Nations, 2019). As a result, people may be forced to wake up too early or sleep too late to be at per with the available transportation system. Fighting for a seat on public transit can attract undesirables people such as criminals.
Highway robbery is a common occurrence in urban areas, many people in urban areas have their belongings taken by fraudsters who act as passengers but rob them. Even though they are gang members, some offenders would pose as drivers or tax collectors (Goetz, 2019). Due to the increased complexity of the transportation system, city dwellers face a considerable security risk. Although the government is helping to secure the transportation system, there is still a risk to the lives of individuals who utilize it. Congestion in the process of utilizing urban transportation, as well as the fight that is involved, leads to inefficient markets.
Economic Analysis Highlighting Why There is Market Failure in Urban Transport
Carbon emissions from using automobile fuel in urban transportation are another factor contributing to inefficient markets. Motor vehicle pollution is hazardous to human health and contains greenhouse gases contributing to global warming. When gasoline and diesel fuel are burned, toxic byproducts such as nitrogen dioxide, carbon monoxide, hydrocarbons, benzene, and formaldehyde are produced (Goetz, 2019).
In addition, vehicles are the single largest source of carbon dioxide emissions, the most prevalent greenhouse gas. Carbon monoxide combines with oxygen and is released into the atmosphere, reducing the amount of oxygen in the atmosphere (Goetz, 2019). The emissions are to blame for a reduction in the overall thickness of the ozone layer in the atmosphere. The ozone layer protects the Earth from potentially harmful radiation emitted by the sun. The powerful rays can have devastating effects on all forms of life, including humans, where they can cause incurable diseases such as skin cancer and wildfires.
Most scientists agree that an increase in solar energy is the primary cause of global warming. According to the Paris Climate Change Agreement 2019, the world’s governments concluded that it is in everyone’s best interest to maintain temperatures on Earth that are 2 degrees Celsius lower than average (United Nations, 2019). The Paris Agreement calls on governments to boost their efforts and support measures to reduce emissions, build resilience and susceptibility to the detrimental effects of climate change, and maintain and encourage regional and international cooperation. The Paris Agreement sets a long-term framework to drive global effort for many decades. This event marks the start of the transition to a world with net-zero emissions. The Agreement should be implemented to achieve Sustainable Development Goals, which is why its implementation is critical. An increase in the number of cars that require fuel in urban areas will inevitably contribute to an increase in the number of fatalities caused by incurable diseases such as lung cancer, fatalities caused by automobile accidents, and the extinction of certain species caused by wildfires and global warming. The international community is being pushed to collaborate to protect the natural world.
Recommendation on the Policy Options Addressing Market Failure of Urban Transport Systems
Considering the issues raised about urban transportation, the entire world should work together to save the environment. The amount of human involvement in the operation of automated vehicles is reduced. They are technologically developed to address the issues of congestion and excessive traffic jams that plague metropolitan transportation systems. They efficiently use ample space and have lower operating costs than alternatives (Goetz, 2019).
Since they use economies of scale, passengers will be charged less for transportation, making them the ideal solution to the problem of rising fares because it is a problem that they solve. Soon, the potential of automated vehicles to preserve nature will have the most significant impact compared to traditional vehicle fuel consumption. Even if carrying out the procedure would result in the demise of the petroleum sector and the loss of millions of jobs, preserving natural resources cannot be overstated.
Technology fix or engineering refers to developing a technology that solves an existing problem. The development of fuel-efficient automobile engines could help reduce the amount of carbon dioxide discharged into the atmosphere. It is widely agreed that reducing the amount of oil released into the atmosphere will improve environmental safety. As a result, there will be a reduction in global warming and its effects on species (Childs, 2021). On the other hand, new technology should be developed to implement the approach, which may be entitled to patent protection. Certain automakers may not be able to produce fuel-efficient vehicles because they will not have access to the essential technologies (Childs, 2021). It is likely that the strategy will fail because the number of cars on the road is increasing annually, increasing the number of carbon particles in the air.
Conclusion
In conclusion, the inability of the urban transportation system to deliver market efficiency directly results from the congestion caused by an excessive number of cars on the roads. Due to the delays it generates, congestion leads to unproductive downtime and lower overall production levels. Second, because of the rapid growth of the urban population, the urban transportation system cannot deliver market efficiency to its consumers. This is a problem since customers want affordable and convenient services. Passengers are exploited by utilizing an increase in fare rates as a direct result of the rapid speed of population growth, which places a burden on the limited transportation infrastructure now available.
Carbon dioxide emissions produced by automobiles have a direct influence on the capacity of urban transportation systems to provide goods and services to the market in an effective manner. The failure of the market can be blamed for many of the problems in urban transportation around the world. However, these problems can be helped by implementing technical remedies and using automated vehicles.
Reference List
Childs, M. (2021) Climate emergency – how do local authorities get people out of their cars?: Policy and insight, Friends of the Earth | Policy and insight. Web.
Goetz, A.R. (2019) “Transport challenges in rapidly growing cities: is there a magic bullet?,” Transport Reviews, 39(6), pp. 701–705. Web.
United Nations, (2019) Sustainable transport key to tackling the climate crisis. Unfccc.int. Web.