🛠️ Invention or technique

Urban congestion pricing (Singapore)

Peaje urbano de congestión (Singapur)

Date
junio de 1975 · confidence high
Place
Central Business District, Singapore
Credited to
Government of Singapore with economists' advice
Field
Movement

What it is

The Area Licensing Scheme required, from 1975, buying a permit to enter the city centre at peak hours. It was the first city-scale application of the congestion pricing proposed by Vickrey; in 1998 it was replaced by electronic road pricing (ERP).

The economic concept is attributed to Pigou, Walters and Vickrey (1920s-1950s); Singapore first put it into practice.

What it led to

  • electronic road pricing (ERP, 1998), the world's first dynamic system
  • tolls in London (2003), Stockholm (2007) and New York (2025)
  • traffic demand management through pricing

Links

Sources✓ verified 2026-10-09