Skip to main content
Log in

Motor vehicle taxes as an environmental management instrument: the case of Singapore

  • Article
  • Published:
Environmental Economics and Policy Studies Aims and scope Submit manuscript

Abstract

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Accountant-General of Singapore (1982–1997) Financial statements. Ministry of Finance, Singapore

    Google Scholar 

  • Ang BW (1989) Modelling of petrol consumption under data constraints. Pacific and Asian Journal of Energy 3:93–104

    Google Scholar 

  • Anti-Pollution Unit, Singapore (1975–1985) Annual report. Ministry of Environment, Singapore

    Google Scholar 

  • Bahl RW, Linn JF (1992) Urban public finance in developing countries Oxford University Press, Oxford

    Google Scholar 

  • Baron IP (1980) Transport and energy. European conference of ministers of transport, Economic Research Centre, round table 52

    Google Scholar 

  • Chia NC (1998) The significance of motor vehicle taxes in the revenue system. Asia Pacific Tax Bulletin 4(7):275–289

    Google Scholar 

  • Chia NC, Tsui A, Whalley J (2001) Ownership and use taxes as congesting correcting instruments. NBER working paper no. 8278, May 2001

    Book  Google Scholar 

  • Chin ATH, Smith P (1997) Automobile ownership and government policy: the economics of Singapore’s vehicle quota scheme. Transportation Research A 31:129–140

    Google Scholar 

  • Department of Statistics (1996) Yearbook of statistics, Singapore 1996. Singapore National Printers, Singapore

    Google Scholar 

  • Department of Statistics (1997) General household survey (1995): transport mode, households and housing characteristics: release 2. Singapore National Printers, Singapore

    Google Scholar 

  • Downs A (1962) The law of peak hour expressway congestion. Traffic Quarterly 16 EPA (1993a) Clean cars for clean air: inspection and maintenance programs. URL:http://www.epa.gov

    Google Scholar 

  • EPA (1993b) Automobiles and ozone. URL:http://www.epa.gov

    Google Scholar 

  • Hewitt P (1987) A cleaner, faster london: road pricing, transport policy and the environment. Green paper no. 1. Institute for Public Policy Research, London

    Google Scholar 

  • International Monetary Fund (1997) Government financial statistics yearbook. IMF, Washington, DC

    Google Scholar 

  • Kahn H (1994) The strategies for sustainable development in a city-state: the case of Singapore. Presented at the XXII international conference of agricultural economists, Harare, Zimbabwe

    Google Scholar 

  • Land Transport Authority, Singapore (1996) A world class transport system. White paper presented to Parliament, January 2, 1996

    Google Scholar 

  • Land Transport Authority, Singapore (1997) 1997 Annual report, Singapore.

    Google Scholar 

  • Lomax TJ, Bullard DL, Hanks JW Jr (1988) The impact of declining mobility in major Texas and other U.S. cities. Research report 431-1F.Texas Transportation Institute, A&M University, College Station, TX

    Google Scholar 

  • McCarthy P, Tay R (1993) Economic efficiency vs. traffic restraint: a note on Singapore’s area license scheme. Journal of Urban Economics 34:96–100

    Article  Google Scholar 

  • Menon APG, Lam SH (1992) Singapore’s road pricing system 1975–1989. Transport research report NTU/CTS92-2. Centre for Transportation Studies, Nanyang Technological University, Singapore

    Google Scholar 

  • OECD (1994) Internalising the social cost of transport. OECD, Paris

    Google Scholar 

  • OECD (1995) Environmental taxes in OECD countries. OECD, Paris

    Google Scholar 

  • OECD (1996) Implementation strategies for environment taxes. OECD, Paris

    Google Scholar 

  • OECD (1997) OECD environmental data compendium 1997. OECD, Paris

    Google Scholar 

  • OECD (1998) Improving the environment through reducing subsidies. OECD, Paris

    Book  Google Scholar 

  • OECD (1999) Environmental taxes, recent developments in China and OECD countries. OECD, Paris

    Book  Google Scholar 

  • Orfeuil JP (1996) Transport subsidies and the environment. Subsidies and environment: exploring the linkages. OECD, Paris

    Google Scholar 

  • Phang SY, Chin AHT (1989) An evaluation of car-ownership and car usage policies in Singapore. In: Report of the select committee on land transportation policy. Singapore National Printers, Singapore

    Google Scholar 

  • Phang SY, Wong WK, Chia NC (1996) Singapore’s experiences with car quotas: Issues and policy processes. Transport Policy 3:145–153

    Article  Google Scholar 

  • Pigou A (1920) The economics of welfare. Macmillan, New York

    Google Scholar 

  • Pollution Control Department, Singapore (1986–1997) Annual report. Ministry of Environment, Singapore

    Google Scholar 

  • Registry of Vehicles, Singapore (dyvarious years) Annual report

  • Repetto R, Dower RC, Jenkins R, Geoghegan J (1992) Green fees: how a tax shift can work for the environment and the economy. World Resources Institute, Washington D.C.

    Google Scholar 

  • Royal Commission on Environmental Pollution (1995) Transport and environment: eighteenth report. Oxford University Press, New York

    Google Scholar 

  • Seah CM (1980) Mass mobility and accessibility: transport planning and traffic management in Singapore. Transport Policy and Decision-Making 1:55–71

    Google Scholar 

  • Straits Times. Singapore Press Holdings, Singapore July 17, 1998; May 31, 2001

  • Watson PL, Holland EP (1978) Relieving traffic congestion: The Singapore Area Licensing Scheme. World Bank Staff Working Paper No 281, World Bank, Washington D.C.

    Google Scholar 

  • Wilson PW (1988a) Wage variation resulting from staggered work hours. Journal of Urban Economics 24:9–26

    Article  Google Scholar 

  • Wilson PW (1988b) Welfare effects of congestion pricing in Singapore. Transportation 15:191–210

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ngee-Choon Chia.

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chia, NC., Phang, SY. Motor vehicle taxes as an environmental management instrument: the case of Singapore. Environ Econ Policy Stud 4, 67–93 (2001). https://doi.org/10.1007/BF03353917

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03353917

Key words

Navigation