MANAGING THE SHIFT TOWARDS SUSTAINABLE TRANSPORTATION IN THE SOUTHEAST ASIAN COUNTRIES

Abstract:

Over the past two decades, most countries in Southeast Asia region have experienced high rates of economic growth. Coupled with the high population densities in the region, the dependence on transport in this region is increasing due to a range of factors which will be analyzed in the paper. The ensuing growth in the transport sector has generated negative environmental externalities including impacts on human health that are many and far ranging. The traditional response to the management of issues in the transport sector has been based on direct regulation. In recent times however, there has been a shift, towards the use of market-based instruments with a view to encouraging investment in the sector, as well as fostering the adoption of more sustainable modes of transportation - Singapore being one such example. The paper will critically evaluate the experience of selected countries in the region in using taxes and market instruments to address the challenges arising from the growing dependence on transport use. Lessons from the experience of other jurisdictions in using taxes and other market based instruments for countries in the region will be critically evaluated with a view to ascertaining the extent to which they can be adapted to the Southeast Asian context. In the course of the analysis an attempt will also be made to explore the constraints faced by OECD countries in implementing the fiscal measures and how they have managed them.