Thursday, February 25, 2016

Many cities stay away from ERP because it brings more bad than good

Some people are proud that Singapore is taking a lead in implementing ERP for the world to follow.
That is not the case. Most cities found it to be a bad idea after balancing the pros and cons.

Many recent road pricing schemes have proved controversial, with a number of high-profile schemes in the US and the UK being cancelled, delayed or scaled back in response to opposition and protest. Critics maintain that congestion pricing is not equitable, places an economic burden on neighboring communities, has a negative effect on retail businesses and on economic activity in general, and is just another tax.

A 2006 survey of economic literature on the subject, however, finds that most economists agree that some form of road pricing to reduce congestion is economically viable, although there is disagreement on what form road pricing should take. Economists disagree over how to set tolls, how to cover common costs, what to do with any excess revenues, whether and how “losers” from tolling previously free roads should be compensated, and whether to privatize highways.

1 comment:

Tan Hwa said...

i though the road is make by using the tax payer money.
??? why we need to pay the the usage.

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