Demand management: an economic perspective

The aim of this paper is to provide an economic perspective on travel demand management. The focus will be on urban road demand management and, in particular, the movement of people on these roads. Demand management is directed at ensuring that potential trip makers make the decision to travel in the full knowledge of the costs that they will incur and that they will impose on others or that restraints on travel are implemented that will approximate this state of awareness. Demand management aims to improve the efficiency of resource use. Its purpose is not simply to reduce travel or constrain mobility. It will not provide a solution to urban road congestion. At this point in time, the responses to travel demand management policies have not been sufficiently researched and monitored to provide reliable estimates of the likely impacts. However, this is not an excuse for inaction, but it may be prudent, nevertheless, to implement demand management measures gradually. The major obstacle to the implementation of road demand management may be governments themselves as they respond to external pressures from road user minorities currently in receipt of subsidies and other concessions for their use of road space.