Singapore is about to become the first country to introduce comprehensive electronic road pricing (ERP). In this paper past and proposed policies for managing traffic congestion in Singapore are evaluated to assess their effectiveness in controlling congestion and their possible case-study relevance for other countries. The potential advantages of ERP over certain past policies are emphasised. Three types of policies are considered-. (i) supply-oriented policies, (ii) policies which reduce the demand for vehicular transport and (iii) pricing policies which reduce the quantity demanded of vehicular travel. We conclude that, while Singapore's pre-ERP pursuit of a package of traffic control options has been effective in controlling congestion, such policies have had complex welfare consequences and raise the prospect of traffic flows being excessively restricted to those with high incomes and substantial travel demands. ERP should be introduced to offset this criticism. The relevance of past Singaporean policy and particularly ERP to other countries is limited by the unique geography and political institutions of Singapore. This suggests limited transferability - at least unless less weight is placed on pricing components of transferred policy packages. (A)
Abstract