GLOBAL FUEL ECONOMY INITIATIVE GFEI Indian Symposium 25th November 2009 The Ashok Hotel, New Delhi, India Presentation by T. K. Malhotra President Federation of Indian Automobile Associations FIAA MINIMIZING FUEL WASTAGE IN URBAN TRANSPORT PROBLEM STATEMENT
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GFEI Indian Symposium
25th November 2009
The Ashok Hotel, New Delhi, India
T. K. Malhotra
Federation of Indian Automobile Associations
resources, the traffic congestion is going up
Delhi (last 16 years)
Population growth – 2 fold
Vehicle Growth – 9 fold
Congestion causes : Increase in Travel Time
Pollution - Global Warming
But hardly any driver would care for all this
To The Actual Cost of Journey
So that people would care for it
MSC = Road Damages + Social Costs + Environmental Costs + Time Costs + Other Costs
We need a dynamic pricing system where
each consumer should be charged amount = the marginal cost of his presence on road
revenue in short run, in long run it will cause reduction
in the use of fuel and the consumer will look for
alternate means of travel. Thus reducing congestion.
Tax imposed for passing a particular stretch of road
toll free roads.
by changing the toll price.
Congestion on roads lead to massive wastages both in terms of time and fuel.
A pricing system based on the marginal social cost of presence on roads for the commuters is a solution.
Fuel worth Rs 1.2 crores wasted in long queues, daily.
Waiting time during peak hours between 15 – 25
Each vehicle spends more than 1.5 litre additional fuel, accounting for a massive daily loss of Rs 18 lakh to state exchequer in fuel subsidies.
The expressway built at a cost of Rs 1000 crores for use of 80,000 vehicles daily. However, about 2 lakh vehicles are using the toll plaza, causing massive traffic snarls.
Waste of fuel in traffic jams per
day : 2.5 litres (0.75 litres for
Cost of fuel wasted by cars in city in a day : Rs. 7.5 cr
Cost of fuel wasted by two – wheelers in city in a day : Rs. 2.5 cr
Govt. subsidy on wasted fuel : Rs.1.5cr
ELECTRONIC ROAD PRICING 90 minutes
Automatic/Electronic Toll collection
e.g. Spreading of traffic to off-peak hours
congestion in next 1 hour and vary the toll prices accordingly.
PRICE ELASTICITY DEMAND FOR 90 minutes
PRIVATE CAR TRANSPORT
Why 90 minutes
No Close Substitute
PROBLEM 90 minutesAT HAND
Demand for Private Car Transport is highly price inelastic.
EFFECTS (Price Hike)
status symbol attached to ownership creating a need
for new car.
By introducing more substitutes, the demand can be made
elastic by following ways:
1. Improving Public Transport Facilities
2. By Introducing eco-friendly policies
3. Parking Restrictions
4. By introducing tedious & costly license
So Whatever We do 90 minutes
We’re not able to effectively deter
People from opting for Private
Because…….. 90 minutes
E.g. Fuel tax just means that fuel is expensive
Some Congested Pathways are a vital 90 minutes
link – people would have to use them
anyways. A toll on these roads give a
direct impact and commuters make a
REMOVE THE COMPULSORY NEEDS 90 minutes
Restructure our society to be able to bypass the need for travel –
work from home wherever possible
BEHAVIORAL ASPECTS 90 minutes
Initiatives to diffuse traffic congestion : 90 minutes
If nothing else 90 minutes
Increasing Road Space :
2. Designing roads to make flow easier and faster for traffic
CONCLUSIONS 90 minutes