I have this feeling that many will not like this. But that, I suppose, is the cross which many economists who say things the way they factually are, have to bear. Of course, I don’t really care as long as I stick to the purely factual economic reality of anything including, in this case, this issue of traffic congestion.

Contemporary economics, in its essentially characteristic amoral mode, has been focusing on the aspect raised by Transport Malta’s Julio Tironi (October 17) for quite some time now, and the simple reality of “insufficient space for the number of cars owned by the people” has inevitably pointed towards the concept of price rationing.

Price rationing for road usage is already a reality in several parts of the world: California, New York and New Jersey in the US, Singapore, London, Oslo and Bergen in Norway, are but a few of the many places where, in the face of situations similar to ours here in Malta, the concept was brought into factual usage.

Let us begin from the simple truth that governments usually provide us all with roads through expenditure of tax euros.  In simple terms roads are constructed and maintained through what we all pay by way of those (our) taxes being spent on road construction and maintenance.

This has the consequence of getting drivers into a mindset where they believe that they are already paying their way for road and highway usage through their overall general taxes, plus what other taxes they pay when paying for fuel and licences.

But (even if they choose to deny it!) what drivers are actually paying for is their direct use of roads. When any one of us chooses to drive, an additional car is added to the traffic flow which slows the commute cost for all drivers. This additional ‘cost’, which occurs solely because one extra person (economists cannot avoid bringing marginal analysis into everything, but it is useful) chooses to drive, is a social cost of driving that is not usually paid for through taxes or fees.

Not to say that the majority of drivers never stop to think about the issue of them using ‘their own’ cars in this manner. Menefreghismo is rampant among car owners and drivers too, you know.

Many economists have argued that drivers should be charged tolls to reduce the amount of rush-hour traffic. Under such a system a person driving during rush hour would have to pay a toll. This forces drivers to decide whether they are willing to pay the price or find an alternative.

Today there are many cars which have available electronic metering devices which read signals from small, prepaid transponders inserted in them. These devices serve not only to keep traffic moving but can also automatically raise or lower tolls at different times of the day.

The congestion dilemma is typical of most economic problems and therefore must carry the ‘market forces’ form of solution

In other countries where such contraptions have been inserted in vehicles the effects have been along the lines of some of the things which have been mentioned locally: such as carpooling, changing of travelling schedules, or commuting through available mass travel systems.

And, yes, drivers who elsewhere became aware of such costs did factually alter their habits, because the higher costs were found to be greater than the price they would be willing to pay to drive to work alone during rush hours. In the process, over time, the real demand for roads and highways comes to be revealed, and the process then really promotes better infrastructure decisions and better use of pavements, time, and money.

The congestion dilemma is typical of most economic problems (e.g. determining what a piece of land is really worth) and therefore must carry the ‘market forces’ form of solution.

Roads, like all forms of land (and especially much more so in a small country such as ours) have a fixed capacity, and it is only the tool of pricing which can act to clear away the market imbalances between the demand and the supply of the asset.

What can be done in Malta at this stage? For one thing I am really hoping that the concept of toll pricing must be given a fair start. Assuming Transport Malta has at its disposal its own capable economists, the authority should pick one route that is, on certain days and/or certain times, used extensively, and levy a toll for a start on all cars which would be carrying less than three people and using that route.

Someone suggested an ideal place where the experiment can be started: it is that bit of road opposite the Porta del Sole restaurant (and what an excellent restaurant that is) round Xemxija Hill in St Paul’s Bay. It is a road used by almost everyone who would be going or coming from Gozo.

Start with a toll gate there and see the economic results (usage, air pollution, road quality impact, etc) and, after some time, say over one year, study the figures.  In terms of congestion usage and pricing the results may indeed be surprising.

I can well imagine an uproar against these ideas but I am sure that, sooner or later, congestion pricing will become a reality. In Malta too, like elsewhere, it is inevitable.

John Consiglio teaches economics at the University of Malta.

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