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I think that many asian cities have the right approach here. Treat cars as a luxury good in a space-challenged context and tax them heavily, while making sure to provide a world class public transport system so as to guarantee no-one actually needs a car. While it doesn't have a COE, tokyo does basically the same thing. You will have to pay $50k upfront for a 10-year car permit in singapore. In Tokyo there's no upfront cost but good luck getting a car park for less than $500/m - and you'll have to prove you have one to register the car. Adds up to about the same amount. I live 100m from a train station with 2 lines, automated trains come every 3-4 minutes, 8 minutes to my workplace. Bike share outside my door. 3 supermarkets and hundreds of shops within walking distance. If absolutely necessary, there's Uber or grab. You don't need a car here. It's a luxury for the rich, and that's pretty much as it should be IMO. |
It's subtly different. The core idea is that car ownership has externalities and the implementation of solving these externalities is to limit absolute numbers and let the market decide what use to make of the quota. Luxury ownership is just one of many uses competing. Uber recently pushed prices up a bit [1] as it bought itself a rental fleet for its subsidiary Lion City Rentals; the ROI on these cars is worth more to Uber than what a citizen is prepared to pay to own a car.
A parallel might be real estate. Yes, you could run a warehouse in Wall Street, but even if you get the permits from the local planning association, you'll be outbid by the investment banks. There is even an example of "luxury" Wall Street real estate in the form of 23 Wall Street [2] which was "purposely designed to be only four stories tall" whilst surrounded by skyscrapers.
It is worth noting that the Singapore government actively works to reduce demand for cars, by increasing the quality and extent of public transport, making it accessible to all, and regulating the taxi and delivery industries carefully to enable them to be cheap and easily available. A COE-type scheme introduced in a city without high quality alternatives (such as Sydney or Los Angeles) would cause the immediate fall of the government responsible and a policy reversal from the newly elected replacement.
[1] http://www.straitstimes.com/singapore/transport/uber-bids-co...
[2] https://en.wikipedia.org/wiki/23_Wall_Street aka the "House of Morgan"