Containing air pollution and traffic congestion: Transport policy and the environment in Singapore

Abstract

Land transportation remains one of the main contributors of noise and air pollution in urban areas. This is in addition to traffic congestion and accidents which result in the loss of productive activity. While there is a close relationship between traffic volumes and levels of noise and air pollution, transport authorities often assume that solving traffic congestion would reduce noise and air pollutant levels. Tight control over automobile ownership and use in Singapore has contributed in improving traffic flows, travel speeds and air quality. The adoption of internationally accepted standards on automobile emissions and gasoline have been effective in reducing air pollution from motor vehicles. Demand management measures have largely focused on controlling the source of traffic congestion, i.e. private automobile ownership and its use especially within the Central Business District during the day. This paper reviews and analyzes the effectiveness of two measures which are instrumental in controlling congestion and automobile ownership, i.e. road pricing and the vehicle quota scheme (VQS). While these measures have been successful in achieving desired objectives, it has also led to the spreading of traffic externalities to other roads in the network, loss in consumer welfare and rent seeking by automobile traders.