Nation of Beancounters

The Real Impact of Money: Traffic Jam Edition

Posted in Uncategorized by Navin Kumar on April 2, 2011

Gurgaon is a satellite city of New Delhi, to and from which people commute daily, many by car. Until recently, the highway toll was Rs. 20 per crossing. However on April 1 (no joke), the toll was raised to Rs. 21.

A modest raise: not likely to be one that causes trouble, right? Except that change is short and not everyone has a spare rupee coin lying around. So the toll employees have to provide Rs. 9 in change to every driver that passes, a time-consuming process which means that the time spent in line has increased from 3-4 minutes to 17-20 minutes (warning: data is anecdotal). Hindustan Times article here.

One can hope that drivers get into the habit of keeping rupee coins handy eventually but given that the benefits accrue mostly to other drivers this habit is likely to be unproduced.

File under “money matters”.


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