vehicles entering the central business district during the morning rush hour and shifted many people’s morning commuting habits.

Singapore has updated its area licensing scheme over the years through the implementation of a number of measures, including extending morning restricted hours, raising fees progressively, expanding the area in which the scheme is applied, putting restrictions on evening hours, eliminating the carpool exemption, and including motorcycles and taxis in the restrictions. The scheme was supported by necessary improvements in public transport, such as the expansion of the bus system, the installation of a rapid mass transit line, and the provision of park-and-ride lots. Further deterrents to driving were also introduced, including a 100 percent increase in parking charges at public car lots within the restricted area and very large increases in car purchase fees. The combined impact of these measures has been dramatic. They caused a 25 percent drop in peak period traffic, which has been sustained despite rapid economic and population growth. In addition, private car traffic entering the zone during the restricted hours was reduced by 70 percent, the share of buses in the modal split increased by 8 percent, carpool levels doubled, and emission levels within the restricted area were reduced by 30 percent.

There are several examples of peak road pricing methods that rely on advanced electronic technologies, such as those in use in Bergen and Oslo, Norway, and, most recently, in Los Angeles, California (Gómez-Ibáñez and Small, 1994; Ayres, 1996). Hong Kong was the first city to pilot test the technological feasibility of large-scale electronic road pricing between 1983 and 1985. Although the system functioned properly, political and administrative problems prevented it from being implemented. ²

Despite Singapore’s success with congestion pricing, and although most transportation economists, planners, and engineers believe that it is a excellent idea, experience in other democratic countries suggests that congestion pricing is likely to be introduced on a piecemeal basis. Nonetheless, congestion pricing is being implemented even in countries where political resistance to charging for roads has always been high.

Another market mechanism, off-street paid-parking facilities in city centers, can complement congestion pricing schemes, provide an incentive to drivers to use their cars more wisely, and make public transport more competitive. In addition, off-street parking can help eliminate the problem of parked vehicles infringing on travel space. Research in the United States (Shoup, 1994) suggests that individuals respond rationally to price signals implied by parking fees, particularly if the fees cover most of the full costs associated with driving and parking in a congested urban area.

Front Matter (R1-R12)

Options for Improving Labor Markets for Megacities in the Developing World (1-34)

Water and Sanitation Services for Megacities in the Developing World (35-64)

Transportation Options for Megacities in the Developing World (65-111)