Homework SourseWhat combination of policies has the Singapore Government us
Solution
Singapore has implemented various measures to reduce road congestion and pollution such as implementing the ERP system and COE certificate.
COE certificate- the COE or Certificate of Entitlement is implemented for new cars where for buying new car,the cost is increased by 2-3 the price of the vehicle by adding additional registration fees which is almost upto 180 percent of the open market value of the vehicle.By increasing the price of vehicles through COE system,government restricts the amount of people who would want to buy a new car.The available COEs are sold through auction process twice a month and the amount of COE is determined through quota system thus restricting the universal availability.
ERP- it is termed as electronic road pricing and it is added in addition to the quota system and additional registration fees that new car owners have to pay.It provides incentives to the drivers to avoid the areas which are very prone to being congested at peak times.Through this,the government can decreases the road congestion as the driver would incur cost upto S$5 for going through congested roads during the peak hours and if one is not in rush,one would definately try to avoid the cost.
This reduction in road congestion is only possible if effectively implemented and checked by the government as it removes any lag or deviation which can happen in the policy\'s implementation.The gobvernment is able to influence the whole economy through its policies and is responsible for the well being of the people and safeguard the environment and they allow the government to implement policies which is acceptable to the people even if it decreases consumer surplus.For the economic properity and growth of a country,it is required to cut down the costs which comes through congestion and pollution.
