Publication Type
Working Paper
Version
publishedVersion
Publication Date
1-2004
Abstract
Singapore introduced a vehicle quota system (VQS) in 1990 as part of its overall policy to control urban congestion. While the VQS has reduced the annual growth rate of the vehicle population to about 3 per cent, it has created uncertainty in the cost of vehicle ownership due to the fluctuations in licence prices. This paper discusses three issues relating to the optimal design of a VQS: licence transferability, sub-categorisation, and the choice of an auction format. The analysis shows that licence transferability is not unambiguously desirable, sub-categorisation is highly regressive, and an open auction format results in less aggressive bidding and lower licence prices.
Discipline
Asian Studies | Behavioral Economics | Economics | Policy Design, Analysis, and Evaluation | Transportation
Research Areas
Applied Microeconomics
Volume
03-2004
First Page
1
Last Page
32
Publisher
SMU Economics and Statistics Working Paper Series, No. 03-2004
City or Country
Singapore
Citation
KOH, Winston T. H..
Congestion Control and Vehicle Ownership Restriction: The Choice of an Optimal Quota Policy. (2004). 03-2004, 1-32.
Available at: https://ink.library.smu.edu.sg/soe_research/777
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Asian Studies Commons, Behavioral Economics Commons, Policy Design, Analysis, and Evaluation Commons, Transportation Commons
Comments
Published in Journal of Transport Economics and Policy, 2004, https://www.jstor.org/stable/20173063