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Allocation flexibility and price efficiency within Singapore’s Vehicle Quota System

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  • Chu, Singfat

Abstract

Permit or license plate quotas are highly effective albeit controversial policy tools for managing growth in the vehicle population and thereby, adverse traffic congestion. A judicious distribution of the scarce permits that targets the dual objectives of price efficiency and social diversity in vehicle ownership can however mitigate the controversy. This paper scrutinizes the attainment levels of these two objectives within Singapore’s multi-categorical Vehicle Quota System in two time periods (1991–1998 and 2002–2011) which differ in the number of permit allocation categories, the auction format used (sealed versus open bids) and in the frequency of distribution (monthly versus semimonthly). The lessons derived are contrasted to the other two jurisdictions which have also implemented quotas on their vehicle registrations namely, Shanghai and Beijing.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transa:v:46:y:2012:i:10:p:1541-1550
    DOI: 10.1016/j.tra.2012.07.010
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    References listed on IDEAS

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    1. 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.
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    7. Riley, John G & Samuelson, William F, 1981. "Optimal Auctions," American Economic Review, American Economic Association, vol. 71(3), pages 381-392, June.
    8. Boyce, John R, 1994. "Allocation of Goods by Lottery," Economic Inquiry, Western Economic Association International, vol. 32(3), pages 457-476, July.
    9. 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.
    10. Dargay, Joyce & Gately, Dermot, 1999. "Income's effect on car and vehicle ownership, worldwide: 1960-2015," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(2), pages 101-138, February.
    11. 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.
    12. Klemperer, Paul, 1999. " Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-86, July.
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    Citations

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    Cited by:

    1. Singfat Chu, 2014. "Mitigating supply and price volatilities in Singapore’s vehicle quota system," Transportation, Springer, vol. 41(5), pages 1119-1134, September.
    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. repec:eee:trapol:v:58:y:2017:i:c:p:62-71 is not listed on IDEAS
    4. repec:kap:transp:v:45:y:2018:i:1:d:10.1007_s11116-016-9733-3 is not listed on IDEAS

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