Why has the #COE failed to keep Singapore's roads congestion free? Enter the sunk cost fallacy. #transport #cars
On paper, the COE system seems like the ideal solution to reducing traffic congestion and lowering infrastructure costs. By making the cost of owning and driving personal vehicles far higher than using public transport, the population would turn to the latter to meet their commuting needs. Additionally, Singaporeans who bought a vehicle despite the costly added premium would be cautious in their use. Logic dictates that the more money you paid, the higher the value you would assign to that item. In the case of cars, the rational behaviour would be to drive less (or only when absolutely necessary) to reduce the risk of accidents and the maintenance costs from wear-and-tear.