Modeling the economic cost of congestion in Addis Ababa City, Ethiopia

Abstract

Road traffic which results in significant time lags, increased fuel consumption, and financial losses, remains a noteworthy challenge in developed and developing countries. As a result, the Ethiopian Government and the City Administration of Addis Ababa have built extensive road networks and imposed restrictions on driving, vehicle acquisition and parking. However, despite all these efforts, drivers and passengers waste significant time on long traffic queues, resulting in unpredictable and delayed travel. The current study investigated the cost of travel time delay, vehicle operating costs, time reliability, and the factors influencing these variables. The study used questionnaires, measurements, and traffic counting techniques to collect data from nine road segments. The sample comprised 3240 participants. The cost functions of both drivers and passengers were examined using a multiple linear regression model, with estimation performed using ordinary least squares. According to the findings, the economic costs of congestion depend on the number of lanes, the length of the road segment, the volume of traffic, and the respondents’ income level. The study also revealed that travel, vehicle operation, and unreliability costs account for 74%, 6%, and 20%, respectively, of the total congestion costs.