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The Electronic Road Pricing (ERP) system is an electronic toll collection scheme adopted in Singapore to manage traffic by way of road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system.
Electronic Road Pricing Gantry at North Bridge Road, Singapore. The world's first congestion pricing scheme was introduced in Singapore's core central business district in 1975 [45] as the Singapore Area Licensing Scheme. It was extended in 1995 and converted to 100% free-flowing Electronic Road Pricing in September 1998.
Electronic road pricing (ERP, Chinese: 電子道路收費系統) is an electronic toll collection scheme first proposed in Hong Kong as early as in the 1980s to manage traffic by congestion pricing. ( Singapore , which first adopted ERP in 1998, was the first city in the world to implement electronic congestion pricing.
Singapore was the first city in the world to implement an electronic road toll collection system known as the Singapore Area Licensing Scheme for purposes of congestion pricing, in 1974. Since 2005, nationwide GNSS road pricing systems have been deployed in several European countries.
This scheme affected all roads entering a 6-square-kilometre area in the Central Business District (CBD) called the "Restricted Zone" (RZ), later increased to 7.25 square kilometres to include areas that later became commercial in nature. The scheme was later replaced in 1998 by the Electronic Road Pricing.
The economic rationale for this pricing scheme is based on the externalities or social costs of road transport, such as air pollution, noise, traffic accidents, environmental and urban deterioration, and the extra costs and delays imposed by traffic congestion upon other drivers when additional users enter a congested road.
The MoT scheduled to cancel all cross-provinces and cross-junctions toll booths in 2019, by renovating toll booths in all entries and exits, plus installing barrels (like how Electronic Road Pricing in Singapore works) on the province borders to fully support non-stop payments, and hence all such toll booths were closed by January 2020. [6]
Using GNSS road pricing, vehicles can be charged for the distance they travel within a cordoned area as opposed to paying a flat entry fee. In Singapore, the Electronic Road Pricing (ERP) system will be switching to a GNSS-based system after the installation of the Onboard Units (OBUs) is completed in 2025. [10]