Motor Vehicle Taxes as an Environmental Management Instrument: The Case of Singapore

• Main Authors: CHIA, Ngee-Choon, PHANG, Sock Yong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2001
• Subjects: Congestion externality; Double dividend; Environment; Motor vehicle taxes; Ownership and use tax; Singapore; Asian Studies; Public Economics; Transportation
• Online Access: https://ink.library.smu.edu.sg/soe_research/1515; https://ink.library.smu.edu.sg/context/soe_research/article/2514/viewcontent/MotorVehicleTaxesEnvironmentalMgt_2001.pdf
• Institution: Singapore Management University

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.