Traffic Jams Cause Billions of Manats in Damage to Azerbaijan's Economy

Traffic Jams Cause Billions of Manats in Damage to Azerbaijan's Economy

Fərid Əlizadə · İqtisadiyyat ·

With the approaching new academic year, traffic congestion in Baku is expected to increase further. The arrival of tens of thousands of new pupils and students in the capital will deepen the existing traffic jam problem in the city. Economists state that the losses caused by traffic jams are not limited to time alone, but cause at least 1-2 billion manats in damage to Azerbaijan's overall economy each year.

In a statement to Modern.az, economist expert Eyyub Kərimli noted that, in general, the traffic jam problem causes trillions of dollars in damage to the economies of countries worldwide each year. According to him, these facts are specifically emphasized in international reports:

“Due to congestion, fuel consumption increases, additional expenses fall on family budgets, and negative impacts on the environment intensify. Traffic jams not only increase the amount of harmful gases emitted into the atmosphere but also disrupt ecological balance, consequently negatively affecting people's health and psychological state. All these situations are ultimately accompanied by stress, fatigue, and serious harm to health.”

The expert emphasized that the continuous expansion of roads is another aspect of this problem:

“Funds allocated for the construction of new roads and the expansion of infrastructure can lead to a reduction in the budget intended for the development of other sectors. Thus, the economic burden of traffic jams further increases.

In the context of eliminating the traffic jam problem, several alternative solutions exist. These include the implementation of diversified work regimes and the establishment of educational and work infrastructure close to where people live. For example, locating educational institutions in areas close to residential complexes can prevent pupils, students, and teachers from having to travel long distances.”

E. Kərimli stated that this approach could also reduce traffic congestion in the city:

“In European countries, people prefer to live in rented apartments close to their workplaces, which reduces the volume of daily traffic flow.

At the same time, relocating some higher education institutions and government agencies from the center, especially from the center of Baku, to the regions can also contribute to solving the problem. This is among the factors that will not only reduce the city's burden but also boost the development of the regions.”

The economist also added that the negative impact of traffic jams on the economy can vary between 1-5% of GDP:

“This includes an increase in road accidents, a rise in insurance incidents, and vehicles breaking down faster due to technical malfunctions.

Thus, the traffic jam problem is not just a transportation issue, but a multifaceted problem with social, economic, and environmental aspects, and its solution is only possible through complex approaches,” E. Kərimli said.