What is overload prices?

Prices of overload is a system that reduces transport overload during travel time. This system includes charging commuting surcharges of a specific transport network during the top -of -the -range overload period. Traveling during the traffic rush can then be moved to other ways of transport or to less busy times. This strategy allows better road congestion control. When a small part of the usual number of vehicles is removed from the roads, the operation can flow much more efficiently. If good or service is available free of charge, people tend to want more than they should if they had to pay. Using a service or a good free of charge can contribute to abuse and waste. Therefore, overload prices are based on a simple economic concept of billing price for good or service that will be more valuable for its users. It is a method of using the market power to reduce pollution and waste associated with traffic.

This lack of offerIt is remedied by billing the equilibrium price. The equilibrium price is the market price at which the item is equal to the required amount. The fees are implemented on drivers with increased surcharges during maximum travel to make the commuters more aware of the overload they contribute. Similar techniques are used in other industries and explain, for example, a change in the field of phones and electricity.

Many cities around the world, including some in the United States, have already successfully implemented this way of reducing traffic during top hours. Overload programs can also use money collected to improve transport systems, including public transport and cycling facilities. This gives commuting other transport options that can balance the transport loads.

Although overload prices are widely accepted, there are critics who indicate that prices are not fair and establish the economic burden of neighboring communities. In addition, critics suggested,that this price method has a negative impact on neighboring retail companies and community economic health. They say that the overload price is simply another tax.

Despite its criticism, supporters of overload prices claim that this method actually saves money to taxpayers. Some ministries estimate that delay and overload of operation actually cost money in lost wages and gas. Peak clock fees could help remove this waste. Literature suggests that most economists agree that road prices are an economically effective method of reducing overload.