Taking its toll: estimating the optimal congestion charge for EDSA

Abstract

In 2022, the Epifanio de los Santos Avenue (EDSA) recorded an annual average daily traffic (AADT) of 410, 844, of which 53.8% were cars, well beyond its capacity of 300,000 vehicles. Viewing traffic jams on EDSA as a negative externality, the paper estimates the appropriate congestion charge that will let road users internalize the costs associated with travel, and therefore alleviate the severe traffic congestion. Using a static or time-independent model rooted from the works of Walters (1961), Johnson (1964), and Espenilla (1980), the paper estimates that an optimal congestion charge for cars ranging from ₱25.81-₱34.83 per kilometer is necessary to reduce volume-to-capacity ratio (VCR) along EDSA from 1.37 to a range of 0.81-1.27, or an equivalent 7.35%-40.85% reduction in AADT.

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Keywords

EDSA, traffic

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