Monday, September 24, 2007

How Will ERP Changes Help Solve Traffic Jams?

Source : The Straits Times, Sept 24, 2007

I BELIEVE most Singaporeans understand the need for electronic road pricing (ERP) to control traffic congestion. What is less clear is whether it is implemented in the best possible manner.

To my mind, ERP alleviates congestion in three ways:

The additional cost discourages the purchase of a car to begin with;

The usage cost discourages existing car owners from driving (for example, they take public transport to work rather than drive); and

The usage cost smooths road usage by encouraging some drivers (who are less willing to pay) to travel earlier or later to avoid paying charges.

I fail to see how the recent changes to ERP will help the situation. Already, ways one and two above do not really work because the upfront cost of owning a car versus the marginal usage cost is still way too high. Way three above was probably the only tangible 'positive' outcome of ERP. But with the recent extension of ERP hours, drivers no longer even have this option unless they are willing to leave home before 7am and return home after 10pm.

In general, Singaporeans would appreciate the Government being clearer about how recent ERP changes (in particular, extended hours) are supposed to help, and what is the longer-term plan to manage road congestion.

With the recently announced CPF changes, the Government clearly spelt out the rationale and long-term plan. Surely it should do the same with ERP.

Andy Chua Ping Hong

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