Being geographically small, land scarcity poses a potential constraint for economic growth in Singapore. Restraining car ownership and car use through motor vehicle taxes is part of the land-transport policy to ensure smoother traffic flow. This paper analyses the use of motor vehicle taxes in Singapore as an environmental management instrument. It evaluates the effectiveness of ownership and use taxes as instruments to internalise congestion and environment externality. Economic issues relating to the use of such taxes are also highlighted. It concludes that motor vehicle taxes offer Singapore a double dividend.
Congestion externality, Double dividend, Environment, Motor vehicle taxes, Ownership and use tax, Singapore
Asian Studies | Public Economics | Transportation
Environmental Economics and Policy Studies
CHIA, Ngee-Choon and PHANG, Sock Yong.
Motor Vehicle Taxes as an Environmental Management Instrument: The Case of Singapore. (2001). Environmental Economics and Policy Studies. 4, (2), 67-93. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/1515
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