Traffic Reduction and Congestion Charge

This policy proposal introduces the implementation of ‘road congestion

charging’ in the Philippines as an alternative policy to the existing laws, rules and
regulation in alleviating traffic and road congestion in the country. Specifically, the
proposal addresses the weaknesses, gaps and flaws of the existing laws and regulations,
specially the Number Coding and Carpooling Act, to produce a more operative and
effective policy to curb out traffic and road congestion in the country. Moreover, this
policy is patterned to the existing congestion charging and road pricing adopted in
Milan, London and Singapore. As it is proven to be effective in almost all of the
implementing countries, the applicability of this policy in the Philippines should not be
overlooked. This is rooted upon the current state of the literature regarding the
relationship of traffic and countries’ economy. Studies show that road congestion and
traffic produce great losses to a country’s economy specifically developing countries,
like the Philippines. Thus, there is a need to come up with a more efficient policy to
address the issue of traffic and its negative impact to the economy and the country in
general.

Keywords: Traffic; Road Congestion; Congestion Charging; Philippine Economy;

Labor force Productivity
I. Introduction
Traffic and road congestions are among the major problems in most cities all
over the world. This is true especially in developing countries causing massive delays,
increased fuel wastage and most notably its negative impact to the economy through
excessive monetary losses (Maitin et. al 2012). In the Philippines for instance, road
congestion and traffic in its major cities, specifically Metro Manila, greatly affect the
country’s overall economy. Studies show that the economy losses, due to congestion
and traffic, is almost as much as two months’ worth of remittances and equivalent to
1.4% of the total Philippine economy (for reviews see study of NCTS 2011 and NEDA
& JICA 2014). Moreover, the National Center for Transportation Studies shows that
traffic costs 138 billion pesos annually, a great loss for a developing country like the
Philippines (NCTS 2011). Furthermore, this excessive economic losses are expected
for a country (the Philippines) which ranked fourth among its Asian neighbors and
placed ninth in the world in terms of negative traffic situation (NEDA & JICA 2014).
The joint study of NEDA and JICA in 2014 also shows that amongst the root
causes of traffic in the Philippines are copious utility of private vehicle, inefficiency of
mass transit and improper pedestrian activity. Specifically, the study emphasizes the
impact of the existence and massive utility of Private Vehicle in Metro Manila.
Supported by the data from the Land transportation office, it shows that 27% of Private
vehicles in the country are in NCR and that there is only 1 kilometer of road per 424
cars in the region which causes traffic in the region (LTO 2013). Moreover, statistics
presented also show that 78% of the road space is utilize by Private Vehicles with 1 to
2 passengers only , whereas, only 22% of which is used by Public Utility Vehicles
which subsequently promote inefficiency to road utility. This proposal will then look
for ways to contribute and improve the existing laws and regulations countering traffic
specifically focusing on the reduction of massive utility of private vehicles while
promoting the usage of public utility vehicles in NCR. Thus the argument of this
proposal is that: the regulation and reduction of massive utility (not ownership) of
private vehicles ease up traffic and road congestion in Metro manila.
This proposal is advocating for the introduction of road congestion charging
scheme that will alleviate traffic and road congestion in the country. Specifically, this
will be called the ‘Philippine Road Congestion Charge’. This policy is patterned with
the congestion charging and road pricing in Singapore, London and Milan. However, it
is specifically tailored to cater the specific needs and capability of our country
(culturally and technologically). Basically, congestion charging or road pricing is
amongst the universally accepted method of alleviating traffic that operates through
charging vehicles (ie. private vehicles) to access certain road networks which are prone
to traffic and road congestion. However, in my proposed policy this will not be
mandatory giving motorists a choice whether to pay or utilize certain road networks
which are not subjected to the charge. There are three objectives of this policy proposal.
First, to regulate and reduced the probability of individuals to utilize private vehicle
through increasing the cost of using a car relative to Public transport. This will be done
through the introduction of Congestion charging scheme to certain congested roads in
the metro. Second, to regulate traffic and congestion to commonly used roads and
encourage motorists to utilize other routes. Through the imposition of congestion
charge in commonly or most used roads, drivers will be given incentives to use other
routes that is not subjected to the charge/pricing scheme. Lastly, it raises funds for the
improvement of public transportation of the country, through the funds collected in the
congestion charge scheme.
In the Philippines, there were existing laws and regulation that were created
with the same purpose as my proposed policy. However, traffic in the Metro is still
evident even upon its imposition. Thus, the flaws of these policies are considered in
this proposed policy. These includes the number coding or UVVRP of the MMDA and
the Carpooling Act. First, the Number Coding of MMDA. Since Number coding does
not limit the car usage/utility in the metro as it only postpones the use of cars, the
source of traffic is not totally eradicated but only delayed. The Carpooling on the other
hand is an efficient way of increasing the efficiency of private vehicles. However, up
until now, this method is subject of criticisms to personal privacy and security. This
proposal then enhance the existing rules and regulation as it does not only delay the
build-up of cars in Metro but continuously increase the opportunity cost of using a car.
This proposal also continuously limiting individuals to utilize private vehicles while
promoting the utility of public transport system to increase road efficiency. Moreover,
it also raise funds (through congestion charging scheme) for the sole purpose that is to
improve the public transport system of the Metro.
This proposal proceeds as follows. The first and second section would include
the policy context of the proposal by unveiling the relationship of traffic, economy and
labor efficiency in the literature. Moreover, it will also discuss the relationship of road
congestion and utility of private vehicles as studied by authors in the literature. The
third and fourth section would include the Philippine traffic laws and regulation as well
as the foreign congestion charging and their flaws and gaps in terms of implementation
respectively. The fourth section would include a detailed explanation and discussion as
to how the proposed policy would be applicable and the concrete measures to make this
proposal work. Moreover, it would also include the possible threats, weaknesses and
limitation of the policy before and after its implementation. Finally, there will be a
section devoted solely to summarize the contents of the policy proposal.
II. Body of the Study
Traffic, Economy and Labor Efficiency
The authors within the literature argue that all developing countries were
subjected to traffic and its negative externalities in the economy (Annan et. al 2015,
Harriet et. al 2013, Mahmud et. al 2012 and Mudzengerere et. al. 2013). The most
prominent consequences of which are excessive monetary losses, decrease in workforce
productivity levels and the general inefficiency of countries’ labor force due to massive
delays in road networks. Annan et. al (2015) for instance, argue that traffic congestion
in urban centers negatively affects the productivity of labourers disrupting the normal
flow of economy in the region. Similarly, Harriet et. al (2013) show that traffic
congestion in Ghana increases inefficiency of the region’s labor force degrading the
economy of the region as a whole. The results of these studies similarly show that
excessive travel delays during peak hours, due primarily to road congestion and traffic,
results to decrease in employees’ working hours, inefficiency of employees in offices
and even affect the general social and psychological state of mind of employees. First,
in terms of working hours. Annan et. al (2015) argue that road congestion and traffic
increases the travel time of workers going to and leaving their work place. As a result,
most of the workers either arrive at their working station late or leave early to avoid
road congestion and traffic during peak hours. Worst, there are workers who both arrive
late and leave early in their offices decreasing their contribution in the workload.
Second, in terms of labor force inefficiency. Similarly, the result of the study of Harriet
et. al (2013) shows that delays in the roads, due to road congestion and traffic, increases
the probability of inefficient workers attending their work every day. This is due to the
fact that road congestion and traffic increases the probability of worn-out and exhausted
employees even before their workloads and tasks instigate, either by waking up early to
avoid the traffic or immersing within the congested roads of the city. Lastly, the general
social and psychological state of mind of employees. Hartgen and Fields (2009) for
instance show that work-related violence is higher in urban factories relative to rural-
based factories in the US. Although it is not the major cause, their study show that the
busy, congested streets within the vicinity of offices and factories contribute to the
probability or chances of work-related violence in US. Weisbrod and Fitzroy (2011)
then argue that road congestion should be taken into account when looking into
behavioural efficiency of employees and the general workforce in the US. Accordingly,
the articles reviewed show that road congestion and traffic have a negative relationship
to the efficiency and productivity of workforce subsequently leading to economic
losses of a country.
On the other hand, another argument presented by authors in the literature is the
effect of road congestion to business activities which procure greater monetary losses
relative to inefficiency of workforce as it affects both the business owners and the
economy in general (Weisbrod et. al 2003, Mahmud et. al 2012, Zhang 2011 and
Mudzengerere et. al. 2013). For instance, Weisbrod et. al (2003) show within their
study the economic costs of urban traffic congestion to business in US. Specifically, the
statistics of their study show that urban traffic or road congestion shrinks business
markets in the sense that it increases business costs and decreases both productivity and
output levels of major business establishments. Trucks that facilitates supply and
private cars of individual workers contribute largely to road congestion which in turn
lead to the downturn of the business themselves (Weisbrod et. al 2003). First in terms
of business cost. Mahmud et, al (2012) show that the businesses supplies and business
transactions from freight trucks and delivery vans incur a lot of cost than expected
when they are jammed in the roads (fuel consumption and delays of delivery). They
argue that business transactions almost always doubles when their delivery vans and
trucks passed through congested roads in between cities. Moreover, they show that it
also affects the customer-firm relationship due to delivery delays as a result of traffic
jams and congested road networks. Second, in terms of productivity and output level.
Zhang (2011) and Mudzengerere et. al (2013) similarly argue that the rising traffic
congestion will significantly undermine the economic competitiveness of businesses
and establishments of cities and regions. As for Zhang (2011) the results of his study
show that 75% to 90% of Chinese-business establishments incur great losses due to
decrease in productivity and output produced as a result of negative externality brought
about by traffic and road congestion. Instead of producing in the optimum level, these
establishments are delayed due to congested road network and jammed streets wherein
their raw materials and other needs for production came about (in their study it also
include the limited and decreasing working hours). Mudzengerere et. al. (2013)
highlighted the effects of traffic jams and road congestion to urban transport in
Zimbabwe. Urban transport, or simply the movement of goods and people, is
considered to be the backbone of economic and sustainable development. Thus, it must
not be alter or delay in any way. However, in Zimbabwe, traffic congestion delay the
process incurring high opportunity cost affecting the economy of the region. The study
show that the delays due to traffic jams and road congestion increases the opportunity
cost of producing goods in Zimbabwe, thus, resulting to decrease in production and
output of businesses and factories. The literatures reviewed show that traffic and road
congestion do have a negative impact to business activity and workforce productivity of
a region which subsequently affect the economy of the region. Thus, road congestion
and traffic should not be overlooked to maintain and regulate the steady flow of the
economy.
Importance of the Study
Road Congestion and Utility of Private Vehicle
Authors within the literature show that the emergence and the massive use of
private vehicles in the roads is among the leading causes of traffic and road congestion.
Moreover, copious utility of private vehicle contribute largely in the occurrence of
traffic and road congestion in a region. Among these are the immense ownership, lack
of parking space and massive utility of private vehicles in road networks that causes
traffic and road congestion (Liguang et. al 2010, Litman 2015, Matin et. al 2012, and
Weisbrod & Treyz 2003). However, the literature also show that utility not mere

ownership of these private vehicles contributed to traffic and road congestion.

In Metro manila alone, LTO (2013) show that 27% of Private vehicles are in
NCR alone. Moreover, their statistics also show that there is only 1 kilometer of road
per 424 cars (road-car distribution) in the region which causes severe traffic and road
congestion. The table above show that there is nearly the same quantity of registered
private vehicles and Public vehicle (For-Hire) in metro manila which lead to a colossal
decrease in road efficiency as discussed by authors in the literature. For instance,
Liguang et. al (2010) argue that rapid growth of car utility in Beijing affects the utility
of public transportation service, road efficiency, air quality and energy consumption in
the region. Moreover, they found out that the massive utility of private cars in the
region is positively correlated to the degradation of public transport operation and air
quality in the region. Thus, they propose that there should be proper policies to be
implemented for the restriction of massive private cars’ utility. Similarly, Litman
(2015) study, through his results and discussion of this research, that inefficiency of
using private vehicles due to its space consumption (big trucks) and unproductive
utility in roads (1-2 passengers only) causes traffic and road congestion. Litman (2015)
argues that the utility of mass/public transport is far more efficient in terms of capacity
and spatial distribution than private cars in congested roads.

Moreover, this table from the joint study of NEDA and JICA (2014) shows that

78% of the road space is utilize by Private Vehicles with 1 to 2 passengers only,
whereas, only 22% of which is used by public utility vehicles. This is computed in
terms of the ratio of person trips and vehicle trips as computed by the authors (see also
NEDA and LEDAC 2000). This in turn promotes road inefficiency in road networks
specifically congested ones since it does not maximize the efficiency of road utility in
terms of number of passengers passing in a congested street due to massive utility of
private cars with limited passengers. This is in support with the arguments presented by
Matin et. al (2012) in their research. Unlike most of the articles reviewed in this
proposal, their research used a qualitative analysis in determining the factors that
causes traffic Jams in the city of Karachi. Through one-to-one interviews, they found
out that non-availability of efficient mass transportation increases the tendency of
workers to buy their own cars. Thus, increasing the number of private cars in the city
resulting to congestion and traffic jams due to inefficiency of road utilization and
minimal passenger per vehicle accessing road networks. Maitin et. al. (2012) also found
out that most of this car owners do not have their own parking space within the vicinity
of their house. Thus, this makes them to park their car on the side lines of roads and
streets (including those roads which are already jammed and congested). On the other
hand, Organization for Economic Co-operation and Development (OECD 2004)
formulates a study regarding the relationship of private car utility and the traffic and
road congestion in European States. Similar to the study of NEDA and LEDAC (2000)
conducted in the Philippines, the OECD look into urban traffic congestion management
in European countries. The proponents within the organization then found out that the
inefficiency of mass transit in European countries discourages citizens to utilize them
and used private cars instead. Moreover, they also found out that the nearly 1:1 ratio of
workers to cars results to massive road congestion in European cities. Thus, the
inefficiency of mass transit resulting to massive utility of private vehicles subsequently
causes the emergence of traffic and road congestion even in developed countries
(European states) as compared to those incidents of developing states (Philippines).
Moreover the organization (OECD) also presented two major reasons as to why the
utility of massive private vehicles increases the probability of traffic jams and road
congestion. These include the tendency of the emergence of unregulated drivers in the
road and inefficiency of institutions and monitors to oversee road violations and issues
leading to the jams and congestion. First, in terms of the emergence of unregulated
drivers. Massive utility of private vehicles in the road results to the emergence of large
pool of drivers interacting in the road within the congested and jammed networks of the
cities. This then brought us to the second point wherein it results to inefficiency of
institutions, organizations and monitors that oversee and manage the traffic flow in the
region. The argument of the OECD (2004) is that although there are a lot of institutions
and organization that supervise traffic management, the massive increase of
unregulated drivers and motorists in the road results inefficiency of these institutions in
regulating traffic and road congestion issues. Thus, the authors reviewed similarly
argue that emergence of massive utility of private vehicles, not just the ownership, need
not to be overlooked when dealing or constructing a policy and solution that regulates
traffic jams and road congestion in the streets and road networks.

Philippine Traffic Laws and Regulation

In the Philippines, there are numerous traffic policies, laws and regulation
proposed and adopted by different institutions and governmental organizations
including the Metro Manila Development Authority (MMDA), the Land Transportation
Office (LTO), the National Center for transportation studies (NCTS), Land
Transportation and Franchising Regulatory Board (LTFRB) and the likes. However, it
is very evident that the traffic jams and road congestions in the country, specifically
Metro Manila area, persist even after the imposition of these policies, laws, rules and
regulation in addressing the issue. Among these policies, there are neither approved nor
pending policy proposals that is directly similar to my proposed road congestion
pricing as it will be discussed in the latter part of the policy proposal. What exist
instead are laws or rules and regulation pertaining to similar purpose - that is to
alleviate traffic in Metro Manila. These include the recently passed Carpool Act
proposed by Representative Eric Olivarez and the Unified Vehicular Volume Reduction
Program (UVVRP) or commonly known as the Number coding by the Metro Manila
Development Authority (MMDA). On the other hand, among the pending bills related
to my proposed policy are the House bill 8242 by Sherwin Gatchalian proposing a
National Traffic enforcement and management Center and the House Bill 559, on the
other hand, proposed by Emeline Aglipay is rooting for a single traffic ticketing system
in the country to counter traffic and road congestion issues.
As discussed, the nearest laws/rules related to my proposed policy to alleviate
traffic are the Number Coding policy and the Carpooling Act. First, the Number
Coding of the Metro Manila Development Authority (MMDA) or also known as the
Unified Vehicular Volume Reduction Program (UVVRP). This is one of MMDA rules
in the form of ‘road space rationing program’ that aims to reduce traffic congestion in
Metro Manila. Specifically, it is in effect particularly during peak hours, by restricting
the types of vehicles that can use major public roads based on the final digit of the
vehicle's license plate. Both public and private utility vehicles are banned to roam
Metro manila’s road networks as long as their license plate is subjected to the number
coding ban which then reduces the number of vehicles roaming the city for each day
depending on the number coding scheme. The Carpooling Act on the other hand is a
recently passed law in the country which seeks to alleviate traffic in the Metro Manila
by increasing the efficiency of using personal car at the same time decreasing the utility
of private cars in the Metro. Specifically it maximizes the capacity of a private car user
to accommodate other passengers who opt not to use their personal cars or the public
transport instead. By that, it reduces the number of private vehicles as well as the traffic
and road congestion they brought about in Metro Manila’s road networks.
 Though Number Coding and Carpooling are created with the same purpose as
my proposed policy, it is evident that these policies are still not enough to alleviate
traffic in the Metro Manila. First, the Number Coding of MMDA. Basically, my
proposed policy is an improvement of this MMDA rule. Since Number coding does not
limit the car usage/utility in the metro manila as it only delays the used of cars, the
source of traffic is not totally eradicated but only delayed. Moreover, the policy is
flawed in the sense that it assumes that a single individual or a family has only one car.
Whereas, well-off families and individuals with more than one car are not subjected to
coding since they can opt to used their other cars instead. Thus, in my proposed policy,
it does not only delay the build-up of cars in Metro but continuously increasing the
opportunity cost of using a car. Moreover, it continuously limiting individuals to utilize
alternative transport system (PUV) and if they opt to still use their personal car, they
are contributing to raising resources (through congestion charging scheme) for the sole
purpose that is to improve the Public transport system of the Metro which will be
discussed more extensively in the latter part of the proposal. The Carpooling on the
other hand is an efficient way of increasing the efficiency of private vehicles’ utility at
the same time reducing too much cars in the Metro. However, up until now, this
method is subject of criticisms. The most notable of which is personal privacy and
security. As for the Philippines, though it is not yet that rampant, researchers argue that
this may lead to delinquencies and modus of criminals that may mask the advantages
brought by these law. For instance, last December 4, 2015 Quezon City Regional Trial
Court has issued a temporary restraining order against the ‘LTFRB memorandum’ that
legalizes Transport Network Companies (TNC) like Uber and Grab Car (Inquirer.net).
The issuance of the TRO is for the grounds of UBER and GRAB being the causes of
heavy traffic which is ironic since it supposedly lessens traffic. Moreover, they are also
to be blamed for the decline in income of taxi operators and drivers, and the increase in
car sales in the Philippines. Thus, I proposed this policy to alleviate traffic and road
congestion in the Metro at the same time taking into consideration the unique factors
(discipline, flooding and culture) that may affect the implementation and maintenance
of this policy. As for the pending bills, on the other hand, the HB 8242 by Sherwin
Gatchalian proposing a National Traffic enforcement and management Center is flawed
and faulty since there exist several groups and agency that are tasked to execute those
objectives of this new agency proposed within the bill – these include the MMDA,
LTO and NCTS. The downside of which is that, it may blur and distort coordination as
enforcers, officials and motorists do not know which agency will carry on specific
tasks. On the other hand, the HB 559 by Emeline Aglipay proposing a single traffic
ticketing system increases efficiency to enforcers and motorists by making it easier to
issue traffic violations to motorist in the road thus, decreasing the probability of traffic.
However, these is flawed as the LTO has this activity within their system. The problem
is that proper implementation and execution. Thus, there is a need for a more accurate
and encompassing policy to incorporate the flaws and loopholes of these existing and
pending policies in addressing traffic and road congestion in the country.

Foreign Congestion Charging

***from a joint study of Asian Development Bank (ADB) and the Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ)

Congestion charging in its broadest sense is simply introducing a price for

commonly use roads to alleviate traffic and road congestion within an area or location.
In economic sense, the main objective of congestion charging is to increase the travel
costs from the level of using a private vehicle relative to public utility vehicle (Asian
Development Bank [ADB] and the Deutsche Gesellschaft für Internationale
Zusammenarbeit [GIZ]). Thus, reducing traffic flows and congestion in a region where
the scheme is applicable. In other countries, there are policies similar to my proposal.
In fact, this proposal is an adoption for these congestion charging in other countries
modifying them to make it applicable and appropriate for the needs of our own country.
These includes the Electronic Road Pricing in Singapore, Road congestion
charge in London and the Area C scheme of Milan. First, the Electronic Road Pricing
in Singapore. This type of congestion road pricing is more advanced relative to my
proposed Philippine Congestion charge in the sense that instead of deploying
MMDA/LTO regulators in the roads (as per my proposed policy discussed on the latter
part of the proposal), there are built-in detectors (Sensors and high-tech cameras) in
bridges and certain parts of road networks which is not applicable in the Philippines
(due to lack of discipline and intense flooding). Road congestion of London and Area
C-scheme of Milan on the other hand is similar to my proposed policy since it focuses
to a certain region (which in the case of my proposal is NCR). However, these policies
have higher pricing scheme since their primary purpose is to reduce pollution and not
alleviate traffic alone. Thus, as we can see, this proposal combine certain aspects of
these three as to cater the needs as well as to consider the unique factors (severe
flooding, lack of discipline) needed to alleviate traffic and road congestion in Metro
Manila.
As we can see on the data presented by ADB and GIZ (Table 1 above), the
imposition of congestion charging in London, Stockholm and Rome was able to reduce
traffic volume by 20%. Moreover, the probability of decreasing traffic volumes due to
the charge range from 10-30 %, depending on the design of the system. The most
important indicators of the positive effect of the imposition are the reductions in travel
times, travel time variability and vehicle kilometres travelled (see ADB & GIZ table
above). It is clear based on the data and arguments presented above that congestion
charging has a significant impact on traffic volume, travel times and speeds (which may
be increased by 4% and 33%). Thus, its introduction, imposition and adoption of road
congestion charging would ease up traffic in a developing country like the Philippines.
Proposed Philippine Congestion Charge
This policy proposal then recommends the introduction and implementation of a
modified road congestion charging in the Philippines which is based on the existing
congestion charging and road pricing scheme of other countries (specifically Milan,
Singapore and London). This will be known as the Philippine Traffic Reduction and
Road Congestion Charge (PTRRC) or simply the Philippine Congestion Charge. This is
a fee that allows motorists to access certain road networks which is mostly congested
and jammed due to massive build-up of cars. There are three objectives of this policy.
First, to regulate and reduced the probability of individuals to utilize private vehicle
through increasing the cost of using a car relative to public transport. This will be done
through the introduction of Congestion charging scheme to certain congested roads in
the Metro Manila making it cheaper and efficient to utilize public transport system.
Second, to regulate traffic and congestion to commonly used roads and encourage
motorists to utilize other routes. This will be done through the probability and choice
available to motorists if they opt not to utilize the road networks subjected to the
congestion pricing scheme. Through the imposition of congestion charge on commonly
or most used roads, drivers will be given incentives to use other routes that is not
subjected to the charge/pricing scheme alleviating the build-up of vehicles in a specific
road network. Lastly, it raises funds for the improvement of Public transportation of the
country, through the funds collected in the congestion charge scheme and the funds
from penalties acquired by violators.
The proposed method of implementing this policy needed the joint cooperation
of three major institution of the country, these are the Land Transportation Office
(LTO), the Land Transportation and Franchising Regulatory Board (LTFRB) and the
Metro Manila Development Authority (MMDA). This Philippine Congestion charge is
a fee which shall be collected by the LTO yearly at the same time as one register or
renew his/her own car. As for the original plan, public utility vehicles is exempted for
this fee as it is one of the objective of this policy to increase the utility of public
vehicles which subsequently increasing efficiency in the road. The fee will depend on
the size of the vehicle. The general rule will be, the bigger the car, the more expensive
you will pay to access a specific road networks. The pricing scheme shall be decided
and crafted by LTO with the help of LTFRB as they are the ones who are most
qualified to craft one. After computation and payment of the fee the LTO will issue the
owner a car sticker that will be the proof of payment.
The choice of road networks that will be subjected to the charge on the other
hand, shall be decided by the LTFRB together with the NCTS, depending on which
road networks are heavily congested and rerouting. This fee is not mandatory, it is
optional. Motorists will be given the choice to avail the fee and is allowed to used
certain road networks (ie. congested ones). On the other hand they can opt not to pay
however they are restricted to access certain road networks that is subjected to the
congestion fee scheme. This will distribute motorists to utilize other roads that is not
commonly used while avoiding congestion and traffic in common congested roads. As
for the collection and monitoring, both MMDA and LTO are task to monitor the flow
of traffic within the congested areas and those cars with no stickers passing the roads
which are subjected to the congested road pricing scheme will be subjected to penalties.
The fees collected together with the penalties will be used for the improvement of
public transportation of the country.
My proposed policy is better as manifested in its three major objectives. First, to
regulate and reduced the probability of individuals to utilize private vehicle through
increasing the cost of using a car relative to Public transport. Second, to regulate traffic
and congestion to commonly used roads and encourage motorists to utilize other routes.
Lastly, it raises funds for the improvement of Public transportation of the country,
through the funds collected in the congestion charge scheme. As discussed, basically
unlike the current laws and regulation being implemented, it does not only delay the
build-up of cars in Metro but continuously increasing the opportunity cost of using a
car. Moreover, it promotes individuals to utilize alternative transport system (PUV) and
if they opt to still use their personal car, they are contributing to raising resources
(through congestion charging scheme) for the sole purpose that is to improve the Public
transport system of the Metro. Moreover, it continuously limit individuals to utilize
private vehicles while promoting the utility of public transport system or other forms to
increase road efficiency. Moreover, it also raises funds (through congestion charging
scheme) for the sole purpose that is to improve the public transport system of the
Metro. Among other positive effects of this charge aside form reducing congestion
which then moderate time wasted and costs for business are the following. First, it
reduce pollution since fewer cars will lead to less pollution. Second, make city centres
more attractive for pedestrians and cyclists, which will help increase quality of life
within the area or region. Third, it also raise revenue. The money collected from
congestion charge can be spent and used for the improvement of public transport and
increasing alternatives to driving. Lastly, it reduces travelling or journey time which is
beneficial for both business and emergency services in the country.
On the other hand, there are two limitations of these proposal. Unlike
Singapore, London & Milan, the Philippines currently do not have the needed
technology for the efficient implementation of the policy. First, the impositions of
enforcers and monitors that oversee the violators of the policy. For example, it is hard
to oversee those who pay for the congestion charge and those who do not. However,
given the technological advancement of LTO and MMDA nowadays, this will not be
that big of a problem. Second, the proper and efficient coordination of the two agencies
involved is needed – MMDA and LTO. Since both are the monitors yet the fees are
collected by LTO, corruption and incompetent employees within these agencies should
not be overlooked.
III. Conclusion
As presented by the discussion and analysis above, traffic and road congestion
are amongst the major problem of a developing country like the Philippines.
Specifically, it greatly affects the economy due to massive delays, increased fuel
wastage and most importantly excessive monetary losses. In the Philippines for
instance, severe traffic in Metro Manila alone hurt the overall economy of the country.
Among the root causes of which is inefficiency of public transport and massive utility
of private vehicles. However, as discussed, authors in the literature and statistics show
that copious utility of private vehicles in a region contribute largely to traffic and road
congestion in the country.
Thus, this policy proposal introduces the adoption of the Philippine Traffic
Reduction and Congestion Charge (PTRCC) or simply known as the Philippine
congestion charge in the country. This policy addresses the loopholes, weaknesses and
flaws of the existing traffic and road congestion policies, rules and regulation in the
country. As discussed, among the existing laws and regulations’ weaknesses that will
be complemented by this policy proposal is the Number coding rule of the MMDA.
Since Number coding does not limit the car usage/utility in the metro manila as it only
delays the used of cars, the source of traffic is not totally eradicated but only delayed.
Moreover, the policy is flawed in the sense that it assumes that a single individual or a
family has only one car. Whereas, well-off families and individuals with more than one
car are not subjected to coding since they can opt to used their other cars instead. Thus,
within this proposed policy, it does not only delay the build-up of cars in Metro but
continuously increasing the opportunity cost of using a car. Moreover, it continuously
limiting individuals to utilize alternative transport system (PUV) and if they opt to still
use their personal car, they are contributing to raising resources (through congestion
charging scheme) for the sole purpose that is to improve the Public transport system of
the Metro which will be discussed more extensively in the latter part of the proposal.
The Carpooling on the other hand is an efficient way of increasing the efficiency of
private vehicles’ utility at the same time reducing too much cars in the Metro.
However, up until now, this method is subject of criticisms. The most notable of which
is personal privacy and security. As for the Philippines, though it is not yet that
rampant, researchers argue that this may lead to delinquencies and modus of criminals
that may mask the advantages brought by these law. For instance, last December 4,
2015 Quezon City Regional Trial Court has issued a temporary restraining
order against the LTFRB memorandum that legalizes Transport Network Companies
(TNC) like Uber and Grab Car (Inquirer.net). The issuance of the TRO is for the
grounds of UBER and GRAB being the causes of heavy traffic which is ironic since it
supposedly lessens traffic. Moreover, they are also to be blamed for the decline in
income of taxi operators and drivers, and the increase in car sales in the Philippines.
Thus, I proposed this policy to alleviate traffic and road congestion in the Metro at the
same time taking into consideration the unique factors (discipline, flooding and culture)
that may affect the implementation and maintenance of this policy. As also discussed,
road congestion charging is efficient and effective way in curbing out traffic to both the
developed and developing countries. Thus, since this policy is specifically patterned to
these congestion charging scheme and road pricing there is a high probability of
success in the implementation of the policy in the Philippines. Moreover, this policy
combine certain aspects of these three and is particularly modified and tailored to deal
and cater the needs as well as to consider the unique factors (severe flooding, lack of
discipline) needed to alleviate traffic and road congestion in the country. As for the
limitations, as long as the three major institutions – LTO, MMDA, LTFRB, with the
help of NCTS, do their designated task as lay down within this policy proposal,
efficiently and competently, this policy will address its purpose that is to alleviate
traffic and road congestion in the Philippines. InGodweTrust
References:

Annan, Jonathan, John Mensah & Nathaniel Boso. 2015. “Traffic congestion Impact on
Energy Consumption and Workforce Productivity: Empirical Evidence from a
Developing Country.” Archives of Business Research, 3(4), 40-54.
http://scholarpublishing.org/Repository/ABR-15-1281.pdf. (August 21, 2015)

Bhatta, Basudeb. 2010. “Causes and Consequences of Urban Growth and Sprawl.” In
Analysis of Urban Growth and Sprawl from Remote Sensing Data, Advances in
Geographic Information Science. Springer Berlin Heidelberg. 17-36.
http://www.springer.com/978-3-642-05298-9. (August 21, 2015)

Council of Ministers Responsible for Transportation and Highway Safety. Urban

Transportation Task Force. 2012. “The High Cost of Congestion in Canadian
Cities.” http://www.comt.ca/english/uttf-congestion-2012.pdf. (August 22,
2015)

Dabbour, Dina, and Khaled Tarabieh. 2012. “Traffic Congestion Sustainable Solutions:
Mass Transportation (Railway Upgrade).” Alexandria, Egypt.
http://gccbs2013.aast.edu/newg/. (August 22, 2015)

Eddington, Jellani. 2006. “The Eddington Transport Study Main Report: Transport’s
role in sustaining the UK’s Productivity and Competitiveness” UK Department
for Transport. London. Available at:
www.dft.gov.uk/about/strategy/transportstrategies

Gachanja, James. 2015. “Mitigating Road Traffic Congestion in the Nairobi

Metropolitan Region.” Kenya Institute for Public Policy Research and Analysis.
2(2015). http://www.kippra.org/. (August 22, 2015)

Harriet, Takyi, Kofi Poku and Anin Kwabena Emmanuel. 2013. “An Assessment of
Trafic Congestion and its Effect on Productivity in Urban Ghana.” International
Journal of Business and Social Science. 4(3). 225-234.
http://ijbssnet.com/journals.(August 22, 2015)

Hayashi, Yoshitsugu, Krit Anurakamonkul, and Takaaki Okuda. 1998. “Examining the
Effect of a Mass Rapid Transit System on Easing Traffic Congestion in
Autodependent Bangkok”. Regional Development Studies 4(1) 65–85.

Hartgen, David and Gregory Fields. 2009. “Gridlock and Growth: The Effect of Traffic
Congestion on Regional Economic Performance.” Reason Foundation Policy.
http://reason.org/files/ps371_growth_gridlock_cities_full_study.pdf. (August
21, 2015)

Jaensirisak, Sittha and Sermsak Pongmesa. 2014. “Integrated Road Pricing and Bus
Rapid Transit: The Effect of Habitual Behaviour and Captive Attitude.” In
Energy,
 CURRICULUM VITAE
Personal Background:

Name : Bagay, Ruby Joy A.

Date of Birth : December 3, 1997

Place of Birth : Nambaran, Tabuk City

Civil Status : Single

Name of Mother : Elizabeth A. Bagay

Name of Father : Romy M. Bagay

Home Address : Nambaran, Tabuk City

TRAFFIC REDUCTION CONGESTION CHANGE

A Simple Research
Faculty of the Criminology Department
Kalinga Colleges of Science and Technology

In Partial Fulfillment of the

Requirements
In Educational Tour

Researcher:
Ruby Joy A. Bagay

April 2019
 TABLE OF CONTENTS

I. Introduction 2

II. Body of the Study 5

Importance of the Study 8

III. Conclusion 18
Reference 20
Curriculum Vitae 21