Induced Demand Theory

Induced demand theory suggests that increasing the supply of a service, like road infrastructure, can lead to higher usage. When more roads or lanes are built, people tend to drive more, resulting in greater traffic congestion over time. Essentially, expanding capacity can encourage more people to use the service, which can offset the intended benefits of reducing congestion. This phenomenon explains why upgrading infrastructure may not always lead to long-term improvements in traffic flow, as demand tends to adjust in response to the increased supply.