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A vehicle quota integrated with road usage pricing: A mechanism to complete the phase-out of high fixed vehicle taxes in Singapore

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  • Barter, Paul A.

Abstract

This expository paper suggests a way to integrate a vehicle quota with usage based charging, including road pricing. It thereby challenges assumptions that ownership control requires high fixed vehicle costs. It focuses on Singapore, which famously has high purchase taxes and a Vehicle Quota System. These are effective but as a result of arguments against high fixed vehicle taxes, Singapore's authorities are gradually relaxing ownership control and increasing reliance on usage charges. This paper proposes a mechanism to 'variabilise' fixed taxes, including the vehicle permit price, in a way that is compatible with the vehicle quota. In particular, it proposes to integrate the vehicle quota with a new generation of electronic road pricing. This could make Singapore's shift to usage-based charging more efficient, complete and flexible while retaining the option to control vehicle numbers precisely.

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  • Barter, Paul A., 2005. "A vehicle quota integrated with road usage pricing: A mechanism to complete the phase-out of high fixed vehicle taxes in Singapore," Transport Policy, Elsevier, vol. 12(6), pages 525-536, November.
    • Handle: RePEc:eee:trapol:v:12:y:2005:i:6:p:525-536
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    Cited by:

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    2. Chu, Singfat, 2015. "Car restraint policies and mileage in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 404-412.
    3. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
    4. Li, Zhi-Chun & Wu, Qiao-Yu & Yang, Hai, 2019. "A theory of auto ownership rationing," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 125-146.
    5. Yu, De-Ping & Li, Zhi-Chun, 2023. "Income distribution, implementation sequence, and equity in auto ownership rationing," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 59-89.
    6. Han, Sun Sheng, 2010. "Managing motorization in sustainable transport planning: the Singapore experience," Journal of Transport Geography, Elsevier, vol. 18(2), pages 314-321.
    7. Attard, Maria & Enoch, Marcus, 2011. "Policy transfer and the introduction of road pricing in Valletta, Malta," Transport Policy, Elsevier, vol. 18(3), pages 544-553, May.
    8. Zhu, Shanjiang & Du, Longyuan & Zhang, Lei, 2013. "Rationing and pricing strategies for congestion mitigation: Behavioral theory, econometric model, and application in Beijing," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 210-224.
    9. Chu, Singfat, 2012. "Allocation flexibility and price efficiency within Singapore’s Vehicle Quota System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1541-1550.
    10. Singfat Chu, 2011. "Sealed v/s open bids for certificates of entitlement under the vehicle quota system in Singapore," Transportation, Springer, vol. 38(2), pages 215-226, March.
    11. Muthukrishnan, Subhashini, 2010. "Vehicle ownership and usage charges," Transport Policy, Elsevier, vol. 17(6), pages 398-408, November.

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