Study shows costs of traffic jams: In 2013 traffic congestion robbed the US economy of $124 billion
KIRKLAND, Washington—Traffic is actually more detrimental to our wallets than our patience, a new study shows. In 2013, traffic congestion robbed the US economy of $124 billion. Without significant action to alleviate congestion, this cost is expected to increase 50 percent to $186 billion by 2030. The cumulative cost over the 17-year period is projected to be $2.8 trillion, the same amount Americans collectively paid in US taxes last year.
The new report by the Centre for Economics and Business Research (Cebr) and INRIX, Inc., a provider of real-time traffic information, transportation analytics and connected driver services, is the first of its kind to quantify the direct impact on drivers in terms of wasted time and fuel as well as indirect costs to US households resulting from businesses passing these same costs on to consumers in the form of higher prices for goods and services.
“The report reveals an ominous forecast for the US if traffic continues to impede the flow of people and commerce to the degree is does today,” said Kevin Foreman, INRIX General Manager of GeoAnalytics. “As the economy grows and more people live in urban areas, greater demand is placed on our roads. Until we evolve our approach to how we manage our transportation networks, the individual and societal costs are only going to get worse.”
Other key findings of the research include:
“The key to deterring these cost predictions is developing long-term solutions that enable more efficient usage of our roads,” Foreman said. “This means creating greater connectivity among vehicles and engineering smarter cities to support this connectivity.”
INRIX, which collects real-time data from drivers and devices across four million miles of road in 40 countries, works with leading automakers—such as Ford, Toyota and BMW—and 40 state transportation departments to harness insights that inform intelligent transportation solutions. This INRIX data enables city and state governments to make smarter investment choices in road and transit improvements, informs transportation policy, and powers smart cities applications, including:
The report also examined the cost of traffic in the UK, France and Germany, and the most congested cities in each of these nations. INRIX and Cebr will be hosting a Webinar at 11 a.m. ET on Thursday, October 16 where Cebr’s lead researcher and INRIX executives share the results of the study in greater detail as well as discuss the implications for industry and government in addressing this growing issue.