The Costs of Congestion

Authors Avatar

nsThe Costs of Congestion

Costs are divided into private costs and cost to third parities.  The cost to the third party is called an externality.  Private costs are costs that are personal to a person or company and so an example of that would be fuelling an airplane with petrol.  Externalities occur when a person is doing something, but the full cost of doing the thing is not paid.  An example of this is pollution, because no one actually pays for the damage caused.  The most efficient outcome to society would be when marginal social cost and marginal social benefit equal each other. 

Join now!

The externalities that are caused have to be the main problem.  The environment is greatly damaged because of this.  The more vehicles driven, the more the pollution caused.  44% of nitrogen oxide emissions in the UK come from cars.  Cars also contribute to 24% of carbon dioxide emissions.  Both nitrogen oxide and carbon dioxide are big contributions to global warming.  Because of global warming, the Earth’s average temperature rises which causes sea levels to also rise.  Nitrogen oxide also harms the bodies respiratory and immune systems.

Carbon monoxide reduces the oxygen carrying capacity of the bloody and ...

This is a preview of the whole essay