CAR SHARING SCHEME : AN ANALYSIS OF DEMAND

Abstract

The Car Sharing Scheme (CSS) in Europe has been effective in reducing car ownership and redundant travel by car. This has inevitably lead to less parking space required, improve air quality and a reduction in traffic congestion. Singapore is the first country in Asia to introduce the car-sharing concept, proposed by Communications Minister Mah Bow Tan. It has been observed that more vehicles are left idle while their owners are working. This is clearly a waste of resources. The CSS hopes to provide non-car owners the convenience and mobility of a car whenever the need arises. However, one would probably cast doubts about the potential demand of the scheme and its effectiveness in reducing car ownership. The objective of the thesis is to investigate factors which influence the demand for and predict participation in the scheme. A survey was conducted in Toh Yi Drive (where the scheme was launched) to collect data on residents' socio-economic factors, travelling patterns and their responses to the scheme. Logit models were then employed to ascertain the significance of the above variables in influencing participation rates. The results of the empirical study form the basis from which policy recommendations were suggested.