A unique demand management instrument in urban transport: the vehicle quota system in Singapore

Abstract

In land-scarce Singapore, the key transport policy is to alleviate traffic congestion. In the late 1980s, vehicle taxes and usage restraints proved ineffective in curbing the fast growth of the vehicle population; hence the rationale for a policy instrument called the Vehicle Quota System (VQS). This paper discusses the operational aspects of the VQS and explains how various implementation problems have been addressed. It is found that the VQS has resulted in effective control of the vehicle population but has given rise to high car prices which are not affordable by a substantial proportion of Singaporean households.