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As far as the dynamic realm of macroeconomic strategies is concerned, the ‘induced demand’ theory is introduced. Induced demand refers to the phenomenon that increasing the supply of something leads to a corresponding increase of its demand. In the context of transportation planning and policy, the theory insists that as roadways become wider and able to accommodate higher traffic volumes, additional vehicles will materialize as people are incentivized to use the expanded road due to the belief that added lanes have reduced traffic congestion.

The theory of induced demand was first noticed by urban planners and road engineers in the 1930s as creation of more roads increased traffic congestion.

In the Philippines, various groups did not favor the construction of the Pasig River Expressway project and called for its discontinuation in 2021. They believed that this would not solve the problem and attract more traffic over time. They suggested focusing on modernizing and improving public transportation instead.

With the existing traffic congestion in the country, attempting to mitigate the issue by expanding and widening the road networks resulted in way more traffic jams that are also associated with air and noise pollution. In the case of well-developed countries like China, investing in road networks prompted people to acquire personal vehicles instead of using public transport.

With the recurring and never-ending traffic issues in the Philippines, especially in Metro Manila, government agencies are aiming for the creation of additional and improved quality of roads. However, the creation of additional roads will only decongest traffic in the short-run, but it will eventually add to the problem of traffic congestion in the long-run as suggested by the concept of Induced Demand. Consequently, the government should also look into other factors that contribute to the cause of traffic issues, such as high vehicle density and the conditions of public transportation. Therefore, investing in better public transportation and urban planning should be considered as this will divert peoples’ reliance on private vehicles to the use of public transport; reducing the traffic congestion in the metropolis. 

As far as the dynamic realm of macroeconomic strategies is concerned, the ‘induced demand’ theory is introduced. Induced demand refers to the phenomenon that increasing the supply of something leads to a corresponding increase of its demand. In the context of transportation planning and policy, the theory insists that as roadways become wider and able to accommodate higher traffic volumes, additional vehicles will materialize as people are incentivized to use the expanded road due to the belief that added lanes have reduced traffic congestion.

The theory of induced demand was first noticed by urban planners and road engineers in the 1930s as creation of more roads increased traffic congestion.

In the Philippines, various groups did not favor the construction of the Pasig River Expressway project and called for its discontinuation in 2021. They believed that this would not solve the problem and attract more traffic over time. They suggested focusing on modernizing and improving public transportation instead.

With the existing traffic congestion in the country, attempting to mitigate the issue by expanding and widening the road networks resulted in way more traffic jams that are also associated with air and noise pollution. In the case of well-developed countries like China, investing in road networks prompted people to acquire personal vehicles instead of using public transport.

With the recurring and never-ending traffic issues in the Philippines, especially in Metro Manila, government agencies are aiming for the creation of additional and improved quality of roads. However, the creation of additional roads will only decongest traffic in the short-run, but it will eventually add to the problem of traffic congestion in the long-run as suggested by the concept of Induced Demand. Consequently, the government should also look into other factors that contribute to the cause of traffic issues, such as high vehicle density and the conditions of public transportation. Therefore, investing in better public transportation and urban planning should be considered as this will divert peoples’ reliance on private vehicles to the use of public transport; reducing the traffic congestion in the metropolis.