Road congestion: A tale of three cities

Commenting on road congestion in Singapore, Assistant Professor of Strategic Management Terence Fan said that the key vehicle policy adopted by the Singapore authorities is quantity control and explained how the Certificate of Entitlement (COE) bidding system works. On the Electronic Road Pricing (ERP) system, Associate Professor of Law Eugene Tan commented that it is a fair system. This “use more, pay more” system works as a way of rechanneling traffic by encouraging drivers to avoid congested roads. Both mentioned that the COE system is completely driven by market forces. What the Government has to manage is transportation, particularly the development of the public transportation system, given Singapore’s land constraints. Assistant Prof Fan added that while the Government may seem a little conservative in its policies, it usually implements new policies only after thorough considerations, and this leads to a balance of good results.  Associate Prof Tan pointed out that the biggest challenge facing the Government now is how to manage the people’s aspirations to own cars. Compared to the older generation, the younger generation seems to be harder to convince.

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