Traffic congestion may occur once the number of vehicles is exceeded to the maximum capacity of a specific road infrastructure. This can lead to the formation of queues, delay, decrease in safety level, and pollution by increasing fuel consumption.
Congestion occurs when additional demands are placed upon the networks or due to inefficiencies on the networks (Blunden 1983). Blunden presents the concept of two types of traffic congestion, good congestion and bad congestion. Congestion due to pressure of demand, the good congestion, is an ally that must be welcome, as it is a product and a sign of vibrant economic activity. Congestion due to inefficiency, the bad congestion, is an enemy that must be combated and prevented at all cost.
The Tyranny of Transport. Congestion - Friend or Foe? by Emeritus Professor W. R. (Ross)
I think it is difficult to empirically distinguish between so-called good congestion and bad congestion. Besides, demand is also responsive (or endogenous) to road capacity (or efficiency of the transportation system). When the system becomes more efficient, more people may demand to drive cars on the roads. In this sense, good congestion and bad congestion are interrelated.