CONGESTION PRICING: THE EXAMPLE OF SINGAPORE

Abstract

The Singapore government has adopted a policy, the short-run objective of which was to relieve congestion in the central city, and the long-run objective, to persuade motorists to reconsider their attitudes toward automobile ownership and use. The policy instrument selected was a form of congestion pricing called area licensing, and its goal was to reduce peak-hour traffic by 25-30%. Under lying the license scheme was the concept that a special supplementary license had to be obtained and displayed if a motorist wished to enter a designated restricted area within which congestion was to be reduced. The first task was to delimit the boundary of the restricted zone; the second, to set the license fee. The license requirement does not apply to buses or commercial vehicles. A park-and-ride scheme was designed to complement the area license scheme. The third element of the scheme was an increase of about 100% in public parking changes within the restricted zone, and a surcharge on private parking lot operators. The monitoring of the impact of the scheme is described as well as the effect on unrestricted traffic. Comments are also made on some of the problems that were encountered in the implementation of the plan. All preliminary observations and analyses indicate that the scheme has been very successful in reducing traffic in restricted zones during hours of restriction. Benefits have accrued to some car drivers, and the administration and enforcement of the scheme has been manageable.

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