Curbing Urban Traffic Congestion in Singapore: A Comprehensive Review

Transportation Journal

Volumn 37, Issue 2, 1997, Pages 21-33

  Toh, Rex S ^a   Phang, Sock Yong ^b  

^a SEATTLE UNIVERSITY   (United States)

^b NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0345876562     PISSN: 00411612     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (55)

1. See Brian G. Field, "Road Pricing in Practice," Transportation Journal, Fall 1992, p. 8.
2. See J. Fraser, "Auto Clogging of the Arterials Evident in Capitals of Europe," Toronto Globe and Mail, October 31, 1986, p. 8; J.A. Gomez-Ibanez and G.R. Fauth, "Downtown Auto Restraint Policies: The Costs and Benefits for Boston," Journal of Transport Economics and Policy, Vol. 14, 1980, pp. 133-153; Thomas J. Higgins, "Road-Pricing Attempts in the United States," Transportation Research, Vol. 20A, No. 2, 1986, pp. 145- 150; J. Tagliabue, "Cars Face Rush-Hour Ban in Central Rome," The New York Times, February 22, 1987, p. 6.
3. See J. Fraser, "Auto Clogging of the Arterials Evident in Capitals of Europe," Toronto Globe and Mail, October 31, 1986, p. 8; J.A. Gomez-Ibanez and G.R. Fauth, "Downtown Auto Restraint Policies: The Costs and Benefits for Boston," Journal of Transport Economics and Policy, Vol. 14, 1980, pp. 133-153; Thomas J. Higgins, "Road-Pricing Attempts in the United States," Transportation Research, Vol. 20A, No. 2, 1986, pp. 145- 150; J. Tagliabue, "Cars Face Rush-Hour Ban in Central Rome," The New York Times, February 22, 1987, p. 6.
4. See J. Fraser, "Auto Clogging of the Arterials Evident in Capitals of Europe," Toronto Globe and Mail, October 31, 1986, p. 8; J.A. Gomez-Ibanez and G.R. Fauth, "Downtown Auto Restraint Policies: The Costs and Benefits for Boston," Journal of Transport Economics and Policy, Vol. 14, 1980, pp. 133-153; Thomas J. Higgins, "Road-Pricing Attempts in the United States," Transportation Research, Vol. 20A, No. 2, 1986, pp. 145-150; J. Tagliabue, "Cars Face Rush-Hour Ban in Central Rome," The New York Times, February 22, 1987, p. 6.
5. See J. Fraser, "Auto Clogging of the Arterials Evident in Capitals of Europe," Toronto Globe and Mail, October 31, 1986, p. 8; J.A. Gomez-Ibanez and G.R. Fauth, "Downtown Auto Restraint Policies: The Costs and Benefits for Boston," Journal of Transport Economics and Policy, Vol. 14, 1980, pp. 133-153; Thomas J. Higgins, "Road-Pricing Attempts in the United States," Transportation Research, Vol. 20A, No. 2, 1986, pp. 145- 150; J. Tagliabue, "Cars Face Rush-Hour Ban in Central Rome," The New York Times, February 22, 1987, p. 6.
6. See Winston Lee, Quota System and the ARF/PARF Scheme. (Singapore: Singapore National Printers, 1991.)
7. This never happened because those who took circuitous routes to their destinations during the restricted hours added to the cross town traffic in the evening, prompting the extension of the ALS to the evening peak hours as well in 1989.
8. For a detailed discussion of the success of differential shoulder pricing, see Sock-Yong Phang and Rex S. Toh, "From Manual to Electronic Road Congestion Pricing: The Singapore Experience and Experiment," Transportation Research E: The Logistics and Transportation Review, Vol. 33 No. 2, June 1997, pp. 97-106.
9. See A.P.G. Menon, S.H. Lam, and H.S.L. Fan, "Singapore's Road Pricing Scheme: Its Past, Present, and Future," ITE Journal, December 1993, pp. 44-48.
10. See A.P.G. Menon, S.H. Lam, and H.S.L. Fan, ibid
11. See A.P.G. Menon, S.H. Lam, and H.S.L. Fan, ibid.
12. A. Pigou, The Economics of Welfare. (London: Macmillan, 1920).
13. F.H. Knight, "Some Fallacies in the Interpretation of Social Costs," Quarterly Journal of Economics, Vol. 28, 1924, pp. 522-606.
14. Ministry of Transport, Road Pricing - The Technical and Economic Possibilities. (London: HMSO, 1960.)
15. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
16. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
17. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
18. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123-136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
19. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
20. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87- 97.
21. See A.A. Walters, "The Theory and Measurement of Private and Social Cost of Highway Congestion," Econometrica, Vol. 29, 1961, pp. 676-699; J. Thompson, "Calculation of Economic Advantages Arising from a System of Road Pricing," Transport and Road Research Laboratory Report No. PRP8, 1962; G. Roth, Paying for Roads: Economics of Tragic Congestion (City: Penguin, 1967); W. Vickrey, "Optimization on Traffic," Journal of Transport Economics and Policy, " Vol. 1, 1967, pp.123- 136; R.M. Solow, "Congestion Cost and the Use of Land for Streets," Bell Journal of Economics, Vol. 4, 1973, pp. 602-618; D. Pines and E. Sadka, " Zoning First-Best, Second-Best, and Third-Best Criteria for Allocating Land for Roads, " Journal of Urban Economics, Vo. 17, 1985, pp. 167-183; Steven A. Morrison, "A Survey of Road Pricing," Transportation Research, Vol. 20A, No. 2, pp. 87-97.
22. See Timothy D. Hau, Economic Fundamentals of Road Pricing Policy: A Diagrammatic Analysis, Transportation Division, Infrastructure and Urban Development Department, The World Bank, December 1992.
23. See J.A. Gomez -Ibanez, and K.A. Small, Road Pricing for Congestion Management: A Survey of International Practice. (Washington, DC: Transport Research Board, National Academy Press, 1994.)
24. Rex Toh, "Road Congestion Pricing: The Singapore Experience," The Malayan Economic Review, October 1977, pp. 52-61.
25. See A.T. Armstrong-Wright, "Road Pricing and User Restraints: Opportunities and Constraints in Developing Countries," Transportation Research, Vol. 20A, No. 2, 1986, pp. 123-127; P.L. Watson and E.P. Holland, Relieving Traffic Congestion: The Singapore Area Licensing Scheme, World Bank Working Paper No. 281, Washington, DC; Paul W. Wilson, "Welfare Effects of Congestion Pricing in Singapore," Transportation, Vol. 15, 1988, pp. 191-210.
26. See A.T. Armstrong-Wright, "Road Pricing and User Restraints: Opportunities and Constraints in Developing Countries," Transportation Research, Vol. 20A, No. 2, 1986, pp. 123-127; P.L. Watson and E.P. Holland, Relieving Traffic Congestion: The Singapore Area Licensing Scheme, World Bank Working Paper No. 281, Washington, DC; Paul W. Wilson, "Welfare Effects of Congestion Pricing in Singapore," Transportation, Vol. 15, 1988, pp. 191-210.
27. See A.T. Armstrong-Wright, "Road Pricing and User Restraints: Opportunities and Constraints in Developing Countries," Transportation Research, Vol. 20A, No. 2, 1986, pp. 123-127; P.L. Watson and E.P. Holland, Relieving Traffic Congestion: The Singapore Area Licensing Scheme, World Bank Working Paper No. 281, Washington, DC; Paul W. Wilson, "Welfare Effects of Congestion Pricing in Singapore," Transportation, Vol. 15, 1988, pp. 191-210.
28. See Brian G. Field, op. cit., pp. 5-14.
29. Using the Nash function as well as the Bentham and Sen measures coupled with World Bank data, Paul Wilson (op. cit.) showed that all three measures indicated a decline in overall social welfare.
30. S.Y. Phang, Housing Markets and Urban Transportation. (Singapore: Mc-Graw Hill Co., 1992).
31. Rex S. Toh, The High Cost of New Cars in Singapore: The Role of Dealer Profits. A Consultant's Report to the Automobile Association of Singapore, January 1995.
32. Information provided to one of the authors by the Registry of Vehicles in Singapore.
33. See Sock -Yong Phang, 1992, op. cit.
34. For a thorough discussion of the unintended effects of the PARF Scheme see S.Y. Phang, Wing-Keung Wong, and Ngee-Choon Chia, "Singapore's Experience with Car Quotas," Transport Policy, Vol. 3, No. 4, 1996, pp. 145-153.
35. For a detailed discussion of general pricing restraints, see Rex S. Toh, "The High Cost of Motoring in Singapore," Business Horizons, March-April 1994, pp. 68-74.
36. S.Y. Phang and Anthony Chin, "An Evaluation of Car-Ownership and Car Usage Policies in Singapore," Report of the Select Committee on Land Transportation Policy, presented to the Seventh Parliament of Singapore, 2 January 1990, pp. B105-117.
37. Japan has a sort of "quota system" by requiring aspiring car owners to have parking spots (fixed in the short run).
38. See S.Y. Phang, 1992, op. cit. and Rex S. Toh, "Experimental Measures to Curb Road Congestion in Singapore: Pricing and Quotas," The Logistics and Transportation Review. Vol. 28, No. 3, September 1992. pp. 289-317.
39. See S.Y. Phang, 1992, op. cit. and Rex S. Toh, "Experimental Measures to Curb Road Congestion in Singapore: Pricing and Quotas," The Logistics and Transportation Review. Vol. 28, No. 3, September 1992. pp. 289-317.
40. If the vehicle is scrapped or re-exported before the ten year period expires, the owner receives a pro-rated rebate of the paid quota premium.
41. This method of setting the price had been successfully used to allocate textile and chlorofluorocarbon (CFC) quotas in Singapore.
42. At this juncture, it should be pointed out that the doubling of fees and taxes on company cars is a historical anachronism. The double charge was quite reasonable when the corporate tax was a flat 40 percent. But now that the corporate tax has been reduced to 26 percent, companies should be over assessed by a factor of 1/(1-.26) = 1.35 times the amount paid by private individuals, for maximum allocative efficiency.
43. According to the Committee to Discourage Double Transfers, Report on Implementation of Measures to Discourage Double Transfers of Vehicles, submitted to the Minister of Communications, 4 May, 1996.
44. For instance, while collecting data for the Automobile Association of Singapore, one dealer told the first author that a 1992 Saab which used to cost S$160,000 in 1992 could be resold for S$170,000 in 1994.
45. See Sock-Yong Phang, Wing-Keung Wong, and Ngee-Choon Chia, op. cit., pp. 150-151. A fuller version of these analyses was presented by the second author to the Committee to Discourage Double Transfers. See Appendix IV of the committee's report (previously cited).
46. See S.Y. Phang, 1992, op. cit., Chapter 8 and Rex S. Toh: 1992, op. cit.. pp. 302-310.
47. See S.Y. Phang, 1992, op. cit., Chapter 8 and Rex S. Toh: 1992, op. cit.. pp. 302-310.
48. "Competition Has Lowered Car Prices," The Straits Times, February 15, 1997.
49. See J.A. Gomez-Ibanez and K.A. Small, Road Pricing or Congestion Management: A Survey of International Practice. (Washington, DC: Transport Research Board, National Academy Press, 1994) and T.D. Hau, "Electronic Road Pricing: Developments in Hong Kong 1983-1989." Journal of Transport Economics and Policy, Vol. 24, No. 2, May 1990, pp. 203-214.
50. See J.A. Gomez-Ibanez and K.A. Small, Road Pricing or Congestion Management: A Survey of International Practice. (Washington, DC: Transport Research Board, National Academy Press, 1994) and T.D. Hau, "Electronic Road Pricing: Developments in Hong Kong 1983-1989." Journal of Transport Economics and Policy, Vol. 24, No. 2, May 1990, pp. 203-214.
51. See Sock-Yong Phang and Rex S. Toh, op. cit.
52. Joseph Yee and A.P.G. Menon, "The Need for Advanced Technology in Road Pricing-The Singapore Experience," Proceedings of the International Conference on Advanced Technologies in Transportation and Traffic Management, Singapore, 18-20 May, 1994.
53. The 1990 Report of the Select Committee on Land Transportation Policy (previously cited) cautioned that "The situation acquires social and political dimensions as increasing numbers of Singaporeans view the ownership of cars as an integral part of middle class aspirations." It continued to warn that the problem will worsen as incomes rise to levels comparable to Japan and the advanced Western countries.
54. See Sock-Yong Phang and Anthony Chin, op. cit. and Rex Toh. 1977, op. cit.
55. See Sock-Yong Phang and Anthony Chin, op. cit. and Rex Toh. 1977, op. cit.