IDEAS home Printed from https://ideas.repec.org/a/kap/transp/v45y2018i5d10.1007_s11116-017-9772-4.html
   My bibliography  Save this article

Singapore’s Vehicle Quota System and its impact on motorcycles

Author

Listed:
  • Singfat Chu

    (National University of Singapore)

Abstract

Singapore’s Vehicle Quota System, implemented in 1990, uses uniform-price auctions to allocate Certificates of Entitlement (COE) or registration rights in five categories presently. Four of these are restricted to small and big cars, commercial vehicles and motorcycles. The fifth one is unrestricted as it allows successful bidders to register a vehicle in any restricted category of their choice. Owners are incentivised via another policy to deregister their vehicle by the tenth year expiry of the COE instead of revalidating it. Each deregistration results in a new COE. Currently, 10% of the COEs from each restricted category is channelled to the unrestricted category. However, hardly any of the expensive COEs in the unrestricted category has been used to register motorcycles. The sharp decline in the number of motorcycle COEs since 2014 has led to a surge in auction premiums at about twice the price of an entry-level motorcycle. The auction process before 2014 is shown to be exemplary with the COE premium driven by its inertia and a host of exogenous factors. After 2014 however, it appears to be unresponsive to the historically low quota levels. This undesirable auction trait needs to be remedied by a reformulation of the COE quota in order to help those most in need of a motorcycle to earn a living. Measures announced in the February 2017 Singapore Budget trudge in that direction.

Suggested Citation

  • Singfat Chu, 2018. "Singapore’s Vehicle Quota System and its impact on motorcycles," Transportation, Springer, vol. 45(5), pages 1419-1432, September.
    • Handle: RePEc:kap:transp:v:45:y:2018:i:5:d:10.1007_s11116-017-9772-4
    DOI: 10.1007/s11116-017-9772-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11116-017-9772-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11116-017-9772-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Phang, Sock-Yong & Wong, Wing-Keung & Chia, Ngee-Choon, 1996. "Singapore's experience with car quotas : Issues and policy processes," Transport Policy, Elsevier, vol. 3(4), pages 145-153, October.
    2. Nishitateno, Shuhei & Burke, Paul J., 2014. "The motorcycle Kuznets curve," Journal of Transport Geography, Elsevier, vol. 36(C), pages 116-123.
    3. Singfat Chu, 2014. "Mitigating supply and price volatilities in Singapore’s vehicle quota system," Transportation, Springer, vol. 41(5), pages 1119-1134, September.
    4. 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.
    5. Jones, Luke R. & Cherry, Christopher R. & Vu, Tuan A. & Nguyen, Quang N., 2013. "The effect of incentives and technology on the adoption of electric motorcycles: A stated choice experiment in Vietnam," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 1-11.
    6. Toshiyuki Yamamoto, 2009. "Comparative analysis of household car, motorcycle and bicycle ownership between Osaka metropolitan area, Japan and Kuala Lumpur, Malaysia," Transportation, Springer, vol. 36(3), pages 351-366, May.
    7. Chu, Singfat, 2002. "Auctioning rights to vehicle ownership: Singapore's experience with sealed-bid tenders," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(6), pages 555-561, July.
    8. Law, Teik Hua & Hamid, Hussain & Goh, Chia Ning, 2015. "The motorcycle to passenger car ownership ratio and economic growth: A cross-country analysis," Journal of Transport Geography, Elsevier, vol. 46(C), pages 122-128.
    9. Marquet, Oriol & Miralles-Guasch, Carme, 2016. "City of Motorcycles. On how objective and subjective factors are behind the rise of two-wheeled mobility in Barcelona," Transport Policy, Elsevier, vol. 52(C), pages 37-45.
    10. Yeung, Jian Sheng & Wong, Yiik Diew & Secadiningrat, Julius Raditya, 2015. "Lane-harmonised passenger car equivalents for heterogeneous expressway traffic," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 361-370.
    11. Tsai, Jyh-Fa & Chu, Chih-Peng & Hu, Shou-Ren, 2015. "Road pricing for congestion and accident externalities for mixed traffic of motorcycles and automobiles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 153-166.
    12. Koh, Winston T. H., 2003. "Control of vehicle ownership and market competition: theory and Singapore's experience with the vehicle quota system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(9), pages 749-770, November.
    13. Phang, Sock-Yong, 1993. "Singapore's motor vehicle policy: Review of recent changes and a suggested alternative," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(4), pages 329-336, July.
    14. Chang, Hsin-Li & Wu, Shun-Cheng, 2008. "Exploring the vehicle dependence behind mode choice: Evidence of motorcycle dependence in Taipei," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 307-320, February.
    15. Jou, Rong-Chang & Chen, Tzu-Ying, 2014. "Factors affecting public transportation, car, and motorcycle usage," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 186-198.
    16. Chin, Anthony & Smith, Peter, 1997. "Automobile ownership and government policy: The economics of Singapore's vehicle quota scheme," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(2), pages 129-140, March.
    17. Hagen, Jonas Xaver & Pardo, CarlosFelipe & Valente, Johanna Burbano, 2016. "Motivations for motorcycle use for Urban travel in Latin America: A qualitative study," Transport Policy, Elsevier, vol. 49(C), pages 93-104.
    18. Koh, Winston T. H. & Lee, David K. C., 1994. "The vehicle quota system in Singapore: An assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(1), pages 31-47, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Chu, Sing-Fat & Koh, Winston T. H. & Tse, Yiu Kuen, 2004. "Expectations formation and forecasting of vehicle demand: an empirical study of the vehicle quota auctions in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(5), pages 367-381, June.
    4. 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.
    5. Suwei Feng & Qiang Li, 2018. "Evaluating the car ownership control policy in Shanghai: a structural vector auto-regression approach," Transportation, Springer, vol. 45(1), pages 205-232, January.
    6. Koh, Winston T. H., 2003. "Control of vehicle ownership and market competition: theory and Singapore's experience with the vehicle quota system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(9), pages 749-770, November.
    7. Winston T.H. Koh, 2004. "Congestion Control and Vehicle Ownership Restriction: The Choice of an Optimal Quota Policy," Journal of Transport Economics and Policy, University of Bath, vol. 38(3), pages 371-402, September.
    8. Diao, Mi, 2019. "Towards sustainable urban transport in Singapore: Policy instruments and mobility trends," Transport Policy, Elsevier, vol. 81(C), pages 320-330.
    9. Winston Koh & Roberto Mariano & Yiu Kuen Tse, 2007. "Open vs. sealed-bid auctions: testing for revenue equivalence under Singapore's vehicle quota system," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 125-134.
    10. Cameron, I. & Lyons, T. J. & Kenworthy, J. R., 2004. "Trends in vehicle kilometres of travel in world cities, 1960-1990: underlying drivers and policy responses," Transport Policy, Elsevier, vol. 11(3), pages 287-298, July.
    11. Chu, Singfat, 2015. "Car restraint policies and mileage in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 404-412.
    12. Sławomir Dorocki & Dorota Wantuch-Matla, 2021. "Power Two-Wheelers as an Element of Sustainable Urban Mobility in Europe," Land, MDPI, vol. 10(6), pages 1-25, June.
    13. Marquet, Oriol & Miralles-Guasch, Carme, 2016. "City of Motorcycles. On how objective and subjective factors are behind the rise of two-wheeled mobility in Barcelona," Transport Policy, Elsevier, vol. 52(C), pages 37-45.
    14. Yang, Xiaofang & Jin, Wen & Jiang, Hai & Xie, Qianyan & Shen, Wei & Han, Weijian, 2017. "Car ownership policies in China: Preferences of residents and influence on the choice of electric cars," Transport Policy, Elsevier, vol. 58(C), pages 62-71.
    15. Wang, Shenhao & Zhao, Jinhua, 2017. "The distributional effects of lotteries and auctions—License plate regulations in Guangzhou," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 473-483.
    16. Chiu, Bing-yu, 2023. "Relationship between motorcycle travel and the built environment: Evidence from Taipei, Taiwan," Journal of Transport Geography, Elsevier, vol. 110(C).
    17. Hao, Han & Wang, Hewu & Ouyang, Minggao, 2011. "Comparison of policies on vehicle ownership and use between Beijing and Shanghai and their impacts on fuel consumption by passenger vehicles," Energy Policy, Elsevier, vol. 39(2), pages 1016-1021, February.
    18. Chu, Singfat, 2002. "Auctioning rights to vehicle ownership: Singapore's experience with sealed-bid tenders," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(6), pages 555-561, July.
    19. 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.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:transp:v:45:y:2018:i:5:d:10.1007_s11116-017-9772-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.