ECONOMIC ASSESSMENT OF CAR CONTROL POLICIES IN SINGAPORE

Abstract

In Singapore, car control policies are designed to curb congestion through ownership and usage restraint measures. The purpose of car ownership policies is to control the growth of vehicle population by increasing the capital cost of owning cars. On the other hand, car usage policies aim at discouraging the use of cars during congested areas or diversion of traffic to other roads through road pricing. In our economic analysis of whether car control policies have achieved their objectives of curbing congestion, the focus will be on the effectiveness and efficiency of each policy. The results show that most of the policies have achieved their primary objectives of controlling car population or discouraging usage at CBD during restricted hours. However, there are some side effects to the policies which may give rise to inefficiency. Some recommended solutions to the inefficiencies through adoption of discriminatory COE auction, lowering of ALS fees and dissemination of informations to road users were highlighted to rectify the problems. Finally, in regard to the redistribution of revenue collected from these car control policies back to the public, the most productive way recommended is through the improvement in infrastructure and public transport services, so as to provide a 'close substitute' to car users.