An advanced demand management instrument in urban transport

Abstract Road pricing is a demand management instrument that has been effectively used in Singapore to help alleviate traffic congestion beginning with the Area Licensing Scheme (ALS) in 1975 and, subsequently, the Electronic Road Pricing (ERP) system in 1998. The paper discusses the level of motorisation in the city-state, the traffic problems faced and the development of the ERP system. The operational and technical features of the system, its impacts, advantages and limitations are then carefully examined. Valuable lessons are drawn on how to successfully implement an electronic road pricing system.