Car Sharing Scheme To Encourage Sustainable Transportation Tourism Essay

We have an increase of population size and people will have different needs to have successful healthy and happy lives. For example, a family staying with their aged parents may regard a car as a necessity to ferry his aged parents to their medical appointment. Due to growing need, without a car to provide the mobility they need, many are force to travel in a less desirable manner. Hence, we could see that the majority of mode of transportation used by most of people in Singapore is car.

Car however has led to a series of problems including air pollution, congestion and growing greenhouse gas emission because a running car’s engine produces large amount of carbon dioxide being emitted into the atmosphere every day. According to Katzev (2003), automobiles are also a major source of carbon dioxide, the so-called green-house gas, which many claim is the principle source of global warming. As such, we need to start as a group of community thinking about more sustainable form of transport in Singapore. One potential alternative to removing cars on the road is through car-sharing scheme. This research will focuses on the opportunities to present to Singapore through this car sharing scheme in our transportations. This is the more sustainable option in the long-run.

In 2012, there were more than 520,000 private cars registered in Singapore. The motor vehicle population in Singapore which include private and company cars, rental cars, taxis, buses, motorcycles, goods and other vehicles were increased by 1.45% from 951,307 in 2011 to 965,192 in 2012 (Singapore Police Force, 2013). Such a large number of private cars reduce the efficiency of the transport system by taking up road space that is needed by public transport and commercial vehicles. The government had tried a series of measures to reduce car overpopulation and traffic congestion by heavily taxing the purchase and use of cars as well as with recently announced that COE prices increase to reach more than S$95,000. However, this had the unintended effect of pricing out people who are in need of a car as does not table the problem of overpopulation. This is because as the population grows, the numbers of cars on Singapore growth will continue to grow.

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The need of Singapore transportation become more sustainable

In Singapore, despite there are a lot cars on the road, we need to decrease cars on the road to make the transport more sustainable, one potential ways by doing this is through car-sharing scheme. Singapore is a small island city-state country whereby we cannot afford to ignore the effects that transport that has on health and the environment. The environment is our priority and Singapore needs to keep the environment as pristine as possible.

Our economy depends on an efficient transport system to delivery smoothly a flow of goods and personnel to where they are needed. Our limited supply of land also means that we have to allocate resources to transport system very carefully. Hence, it’s important to adopt a greener form of transport.

Nevertheless, we understand that no matter how efficient Singapore public transport system are, can never fully meet every mobility need. Despite of an excellent MRT system and efficient taxi system, alternatives are required to allow for Singaporean to make different choices about going around on the island. Car-sharing scheme is such a choice for such opportunities to remove cars on the road while still allowing people to get around as they need to.

Car-sharing scheme, a new approach to sustainable transportation in Singapore

Car-sharing is a pay-as-you-drive transportation service introduced in many modern cities to build a sustainable urban transportation strategy and environment-friendly urban community. This amazing green business idea works because people save money, and lose the hassles of ownership, yet still able to access to a car when they need one. The car-sharing growth in Singapore is mainly boosted by the rise of COE price. Higher COE prices are driving people to look for cheaper and more flexible options and therefore would able to push people towards using public transport, or opt for car-sharing.

Car-sharing allows individual to gain the benefits of using a private car without the costs of responsibility of owning a car. The benefits of car-sharing can include – more careful consideration of the necessity, duration, and distance of automobile trips, resulting in decreased vehicle use and ownership, and reduced parking demand and traffic congestion. Besides, car-sharing will be greater consideration given to alternative mode, resulting in increase of MRT passengers. Car-sharing also provide cost saving to individual and employers, energy savings and air quality benefits as well as reduce the emission of carbon dioxide. Despite to its many potential benefits, car-sharing may gain in popularity in Singapore as demonstrated by increasing North American membership.

Through car-sharing scheme, we are able to reduce cars on the road which led to less congestion, less pollution, less dependence on oil, and cleaner, fresher air to breath.

Car-sharing Operators in Singapore

There are about 300 car-sharing vehicles located in over 100 locations in Singapore. Land Transport Authority (LTA) is working closely with HDB and car-sharing operators to provide more locations across the island to make it more convenient for users to access a car-sharing service in the near future. In Singapore, currently have a few car-sharing service providers: Car Club, Whizzcar and Kah Share. Clean Mobility Singapore, an environmental start-up company that provides electric cars for hire launched in Buona Vista-Ayer Rajah area and have designated parking lots in Pixel Building, Biopolis, Fusionpolis, Insead Campus and Block 71 Ayer Rajah Crescent. Clean Mobility is part of the Energy Market Authority and Land Transport Authority’s three-year, electric-vehicle trial costing $20 million (The Straits Times, 2011). The Straits Times (2013) had reported that more than 150 people have plugged into a year-old electric car-sharing sharing scheme operated under the brand name Smove. Meantime, Kah Share, Whizz Car and Car Club have reported an increase of between 15 per cent and 35 per cent each in membership numbers (The Straits Times, 2011).

Government Intervention

Like many other cities, Singapore faces the challenge of managing traffic congestion. With a fixed quantity of road space, each additional vehicle adds to the demand of road space and increases congestions for every other vehicle and pollutes the environment. Singapore is a land of scarcity, the country does not have the luxury to allow everyone to own a car and that car ownership cannot be put under the same category as basic necessity such as housing (Channelnewsasia, 2013). As part of effort to reduce carbon emission from car, the Singapore government implemented the Vehicle Quota System (VQS) which allows the government to control the amount of cars on the road.

Vehicle quota system – The VQS is controlled by the Certificate of Entitlement. The purpose is to limiting the number of newly purchase vehicles and aims for sustainable growth in vehicle population. The buyer has to bid to purchase a COE which is valid for 10 years before the vehicle can be use on road. The government had decided to reduce the allowable vehicle growth rate from 3 per cent per annum which was the rate since vehicle quota system introduced in 1990, to 1.5 per cent per annum in 2009, and further reduced it to one percent per annum in 2012 and 0.5 per cent per annum in February 2013. The COE premiums for small cars (up to 1,600cc) breached the $90,000 mark, finishing the year’s first bidding session at $92,100 on January 2013. This is up 12.4 per cent from last month’s bidding where prices ended at $81,889. Prices for big cars in Cat B (above 1,600 cc) also reached a new high, ending at $96,210. The previous record-breaking price was $94,502 in August 2012 (icarsclub, 2013).

Figure .1: COE Open Bidding Result (Source: sgcarmart.com, 2013)

Taxes and fees on vehicles – Every car in Singapore is taxed by an import (Customs) duty, registration fee, an additional registration fee, and road tax which make owning a car in Singapore very expensive. The import duty is 31% of the import value of the car, on top of that, a Registration Fee is charged for private cars and on top of that, an Additional Registration Fee (ARF) is charged. The (ARF) is 100% of the Open Market Value (OMV) of the vehicle.

Public parking charges have been raised and also additional surcharges were levied to discourage car use. Others cost such as insurance, Electronic Road Pricing (ERP), petrol and maintenance cost which are extremely costly for an average earning individual and thus it helps to control car population. Hence, implementation of government regulations with soaring premiums for COEs, taxes and fees or charges, it had directly boosted the use of car-sharing for the people who need to travel around the island. For a successful car sharing scheme in Singapore, Singapore government has to play its part in addressing the problems of climate change and looking at ways and measures to reduce our emission.

Research Question

Our research will focus on the primary and secondary question in view of the solution to road congestion, pollution and other environmental and resource consequences of automobile dependence through car-sharing.

1.2.1 Primary Research Question

Our research question is what are the benefits and opportunities for using car-sharing scheme to make Singapore transports system become more sustainable.

1.2.2 Secondary Research Questions

The scopes that this research is focusing on:

What is car-sharing scheme and how does Car-sharing works;

What are the benefits of car-sharing scheme;

Who benefits from car-sharing scheme;

Which countries have already develop car-sharing scheme

The Scope of the Research

The study will focuses on the benefits of car sharing scheme in our transportation option for many people in meeting the transportation needs in an economically and environmentally responsible manner in Singapore.

Research Method

The research method we will be using is both qualitative and quantitative research approach. The quantitative method will be based on the research question analyses based on the current situation and analyses through literature review. The qualitative method shall be gathering information through sets of questionnaire on a focus group of employees, employers and retirees at a few point of location in Singapore.

Research Objective

The main objective of the research is to understand the problems of increasing car population which led to a serious problem of air pollution, congestion and growing of greenhouse gas emission and to identify the opportunities and benefits of car-sharing scheme as an alternative transportation mode towards sustainable form of transport in Singapore.

Limitation

This research will be discussing the benefits of car-sharing scheme using normal car and only within Singapore based on the knowledge and understanding gather from collected information sources and data. There will be limitation to forecast whether of the impact and growth car-sharing scheme by using electric car. It may impractical at this moment although electric car have the potential to reduce our carbon emission significantly if adopted on a large scale and government play its part promoting green vehicle by provide a range of incentives or rebates. However, the technology is still in the early stages of development. Beside, in order for electric car to have a positive impact on reducing emission, the energy grid empowering these cars need be from a sustainable source like solar or wind. Due to the cost of buying a hybrid vehicle is much higher than of a normal car, users, limited range of electric vehicle as well as the charging time. The information and data will be obtained from published news and journals except the information from questionnaires.

CHAPTER 2: LITERATURE REVIEW

Definition and explanation of car-sharing scheme

Car sharing is a revolution in personal transportation – urban mobility for the 21st century. Carsharing is designed to replace car ownership for people who do not need to drive to work every day, and to significantly reduce road congestion and greenhouse gas emissions. It is a service that provides 24/7 self-serve access to a network of cars stationed around the city (and increasingly, cities world-wide), which can be reserved by the hour or day via smart phones, Internet and call centres (Carsharing, 2013).

Automobile, despite its numerous benefits, is largely responsible for many of the environmental and social problems in the world today (Katzev, 2003), which Singapore is one of such countries. The dependence on automobile has contributed traffic congestion and pollution to the air of Singapore. Therefore, in order to reduce traffic congestion and reduce the environmental impact contributed by automobile in Singapore, numerous efforts have been made by the government to reduce vehicle population growth rate by increasing the Car of Entitlement (COE) prices for cars or reducing the quota for COE.

Car-sharing is first introduced in Singapore by NTUC Income in 1997 since the rise of COE prices and over the years, the interest in car-sharing has risen as car-sharing is the ticket for drivers who cannot afford or do not want to own a car (The Strait Times, 2012).

Differ from car-pooling, car-sharing is a process whereby people share or rent a car without having to bear the responsibilities of car ownership and costs. Whereas in car-pooling, it is a group of individuals taking the same car together to get to a common destination at the same time. In car-sharing scheme, the car-sharing companies pay all of the costs of vehicle maintenance, service, and repairs. This includes insurance coverage, parking, and the cost of fuel (Katzev, 2003). Also differ from conventional car rentals, car-sharing companies operate by placing cars near to member’s home or office when the needs to use the cars arise. (Martin & Shaheen 2011). The pay-as-you-drive or pay-per-use transportation service which provided by the car sharing companies offer drivers another alternative and freedom of using the car. Drivers get to enjoy the benefits of a car without having to own one for a short period of time based on their travelling needs, such as hourly or daily basis. The drivers are also allowed to choose the types of cars according to their needs.

This scheme is introduced in many modern cities to build a sustainable and environment-friendly urban community (Land Transport Authority, 2013). A research done in the North America shows that one shared vehicle can take 6 to 33 privately owned vehicles off the road. This is made possible by reducing the number of private vehicle required to complete non-work trips (Green Business Times, 2013). Hence, car-sharing reduced congestion on the road as it reduces car ownership and people dependency on privately owned vehicles. Car-sharing also has environmental impact to the environment. According to the article stated in Green Business Times (2013), ‘vehicle miles traveled by members dropped by 67%, yet they were able to maintain mobility and convenience of transportation while getting access to a wider variety of cars. The drop in vehicle miles traveled will have a huge environmental impact that results in a decrease in greenhouse gas emissions from 39% to 64%’.

Since its inception, car-sharing has grown rapidly and it has become more common worldwide, especially in Europe and North America (Shaheen, Sperling & Wagner 1999). Car-sharing membership has increased by 360% worldwide between 2006 and 2010 (Carsharing, 2013) and as of January 2011, North American car-sharing companies served almost 604,000 members with about 10,000 vehicles. (Martin & Shaheen 2011).

2.1.1 How car-sharing works in Singapore

It usually takes less than 5 minutes from reserving to collecting a car-sharing vehicle and the whole process is automated and it is self-service just like having a own car. To use the car, the user can follow the steps listed below:

Join as a member

User who wishes to car-share must first join as a member at any of the car-sharing company. After which, members will receive a personal keyfob/ smartcard. The keyfob/ smartcard is use to unlock an electronic box where the car keys are kept.

Making reservation for the car

When there is a need to use the car, member can make reservation via smart phones, Internet and call centres. The reservation can be made within a few minute notice or few days in advance. The booking will be keyed into a computer and transmitted to the electronic box.

Collecting the car

The cars are normally parked near to user’s home or office in designated car park spaces.  The electronic box is located in the member’s estate and the member can unlock the box when the member slots in their keyfob/ smart card. His booking particular will be copied onto the keyfob/ smart card and he can then collect the key.

Driving the car

During reservation period, member will just use the car just like his own.

Returning the car

When member has finished using the car, he needs to return the car back to the same location where he has collected the car. He also needs to place the key back to the electronic box.

The trip usage is automatically recorded and the member can view their usage record online.

Payment

The invoice is then generated and payment will be made through GIRO or credit card monthly to the car-sharing service companies.

If a member does not return the car on time, he will have to pay a penalty, which will be used to compensate the next member who had booked the car but was inconvenienced due to late return from the former member (Carsharing, 2013).

Benefits of car-sharing

Due to recent high COE, it is getting more and more difficult for one to own a car in Singapore nowadays. Some of the major social benefits of car-sharing are such as lower emissions, ease traffic congestion, convenience and cost savings for individuals and businesses, better utilization of land and energy resources and reduce the demand for car park spaces.

2.2.1 Less pollution to the environment

Motor vehicle usage is a major source of air and noise pollution in the world today. It has contributed 70% of the carbon monoxide, 45% of the nitrogen oxides, and 33% of hydrocarbon emissions in the world (Katzev, 2003). The combustion process of fuel in motor engines emit Carbon Monoxide (CO) will not only pollute the air quality, it also harm the human body through respiration (Sing Health 2013).

Motor vehicles are also a major source of carbon dioxide, a greenhouse gas, which many claim is the principal source of global warming (Katzev, 2003). Besides carbon monoxide and carbon dioxide, other greenhouse gases such as nitrous oxide, methane and chlorofluorocarbons (CFCs) are also released from the combustion process of fuel in motor engines. These gases caused global warming to the Earth which the temperature will increase and trap the radiated heat from escaping out (Nutramed, 2011).

In the United State, low emission motor vehicles contribute to lower greenhouse gas (GHG) emissions. AutoShare and U Car Share offer additional greenhouse gases reductions through partnerships with carbon-offset companies. Many customers report an increase in environmental awareness after joining a carsharing organization (Shaheen, North American car-sharing, 2008).

Noise pollution is also an issue to the environment. With more motor vehicles on the road, the noises created from the engine revolutions can be a nuisance to the environment. Especially during traffic congestion, the noise level can be high and it may disrupt the concentration of one’s mind.

With fewer vehicles on the road through car sharing, the level to Carbon Monoxide (CO) will eventually be reduced, thus causing lesser carbon monoxide emitted to the environment.

2.2.2 Less traffic congestions

http://driving-in-singapore.spf.gov.sg/services/driving_in_singapore/images/information/traffic_statistics/fatality.jpg

Figure .1 : Fatal and Injury Accident Rate Per 10,000 Vehicle Population (Source: Singapore Police Force, 2013)

Car-sharing helps to tame traffic because it reduces solo driving (Wang, 2011). According to the graph, Singapore has an increasing figure in vehicle population by 1.45% from 951,307 in 2011 to 965,192 in 2012 (Singapore Police Force, 2013). This is a great number for Singapore as our country is limited in land area and the increasing vehicle population creates more traffic congestions.

Traffic congestion is an increasingly serious problem in many cities. For example United States, traffic tie-ups, especially during peak hours timing, are estimated to cost the United States 1.2 billion hours of lost time and 2.2 billion gallons of gasoline each year, to say nothing of the estimated $30 billion annual loss in productivity alone (Katzev, 2013).

Due to the increasing numbers of motor vehicles on the road, the danger faced by the road users, especially motorcyclists are still an issue. Despite last year’s drop in the fatal and injury accidents, there are still a significant number of deaths on our roads. The increase in the number of traffic violations remains a concern as every traffic violation can potentially result in a fatal or injury accident and the loss of lives (Singapore Police Force, 2013).

As an alternative measure of reducing the amount of vehicle population, car sharing can provide road users with a choice. Some of Singapore car sharing companies such as CarClub provides to their customers a wide variety of motor vehicles to choose from to cater for different kind of occasions (CarClub, 2013).

Because the drivers of the car sharing scheme are charged accordingly to the amount of mileage logged, therefore drivers would plan their trip carefully in order to make unnecessary drive trips.

The implementation of car sharing can also reduce the amount of motor vehicles on the road if 5 people sharing a car to the common destination rather than driving on personal motor vehicles.

2.2.3 Reducing the cost of traveling to destination

Traveling to a destination by private vehicles can be costly. With Singapore implemented ERP (Electronic Road Pricing), It will be expensive to travel to CBD area during peak hours by personal vehicles. In addition, the cost of parking in business towers in CBD area can be costly too.

The cost of owning a private car can be a burden in Singapore. As the price of Certificate of Entitlement (COE) is hiking, a measure by the Singapore Government in order to maintain or reduce the amount of motor vehicles on the road, which can be costly. According to report, a price of a Cherry QQ in Singapore with COE can match up for a Porsche Boxster Black Edition in the US (AsiaOne, 2012); this shows how the soaring COE price has turned the ownership of motor vehicle as a huge expenditure.

Car sharing is different from rent a car from car rental, car sharing gives individuals access to a car for brief trips, in some cases as short as a half hour, charging only for the time and duration of each trip. In contrast, car rental companies charge the full daily rate, regardless of the duration or distance of travel. In addition, customers that rent a car must pay for the petrol cost required to fill the vehicle’s tank at the time it is returned, while the car-sharing companies pays all the costs of fuel, as well as insurance, vehicle maintenance, service, and repairs (Katzev, 2003).

As car sharing scheme in Singapore, drivers can save amount money on the cost of owning a private motor vehicles including maintenance fees, annual road taxes and motor vehicle insurance payable. Car sharing not only offers to non-car owners the driving experience; it has also offers a much cheaper alternative to travel to their destination that in private motor vehicles.

Car sharing has also provided Singapore a much cheaper alternative to travel than by taxi. Traveling by mode of taxi can be expensive. The rates and surcharges can add up to a high cost.

Surcharges such as peak hour charges, midnight charges and location charges are included in different timing and location.

Some of car sharing companies in Singapore such as CarClub provides to their customers with different price plans. CarClub comes with value plan and standard plan to cater to every customer’s needs. Value plan is cater for more for regular drivers whereas standard plan is cater more occasional drivers (CarClub, 2013). With different available price plans, drivers can choose the most appropriate plans to suit their driving frequency and save money. University students and low-income households also benefit from the flexibility and mobility that carsharing offers (Shaheen, North American car-sharing, 2008).

With the recently tightening measure by the Singapore government, it has become more difficult for low and middle income group to purchase a private motor vehicle as buyers have to foot a down payment of 40 per cent or more for a new vehicle and have a maximum of five years to service their car loans (ChannelNewsAsia, 2013). Therefore, car sharing can be a more afford to the market for low and middle income groups.

2.2.4 Better connection

Car sharing has provided users a better connection between different modes of transports, making it easier for the public to connect major transport nodes and therefore reducing the need to drive to their destination.

Car sharing can provide better access to place where has limited access. For example, HDB residential area where the distance to the nearest public transport node is far away, it may be difficult for elderly or disabled people to travel.

Motor vehicles in the car-sharing fleet are usually located close to the user’s residence, whereas those belonging to the rental companies are parked in central areas or major transportation hubs. Finally, those who want to rent a vehicle are required to complete time-consuming paperwork before they can drive the vehicle, whereas car sharers need only phone or go online to reserve a vehicle prior to using it (Katzev, 2003)

In Singapore, CarClub has offered their customers with over 60 HDB car parks around Singapore to pick up the vehicles and available on 24/7 which provides ease and convenience (CarClub, 2013).

Who benefits from car-sharing?

The ultimate purpose of car-sharing are reducing the number of cars, increasing the efficiency of transport infrastructure and also changing behavior through alterations in mobility patterns. This has actually benefits to environment, social and government.

2.3.1 Environment

2.3.1.1 Creation a Potential for Better Quality of Life and Urban Form

Car-sharing has proved its potential to reduce the negative impacts of social and environment. Monitoring of air quality takes place at stations around Singapore, and plays an important role in keeping the population up to date on haze conditions (National Environment Agency, 2013). Air emissions from the industries and motor vehicles are the two key sources of air pollution domestically (National Environment Agency, 2013). Each car-sharing vehicle can replace 4 privately owned vehicles (CarClub, 2013). Thus, car-sharing reduces the numbers of cars on the road; fewer cars equal fewer emissions of greenhouse gases. This means less pollution; decrease congestion on the road as well as reducing the amount of space used for parking and helps to regain space for environmental and other social uses.

2.3.1.2 Reduction of COâ‚‚ Burden of Transport

Car-sharing is a pay-as-you-drive transportation service introduced to build a sustainable and environmentally-friendly urban community. This service provides an incentive for people to use car less and instead use public transport, a bike or walk. People have a greater variety of transport options available to them as when deciding the best way to reach their destination. Commuting by public transportation reduces your carbon emissions by 20 lbs per day, 4,800 lbs per year, which is more than if you weatherized your home, converted to fluorescent bulbs and replaced an old refrigerator, combined (PromotingPublic Transport, 2013).

2.3.1.3 Reduction of Energy Consumption

An environmentally friendly car-sharing operator provides a wide range of vehicles to choose. They can choose different types of vehicles to fit their needs. Example, a small city car is usually most energy-efficient and less pollution; an estate cars are likely to be necessary for family trips; and a van may require for group travel. Users choose the vehicle type that best meets their needs for a particular trip. This benefits consumers, and may provide external benefits by reducing the use of oversized vehicles when smaller vehicles are adequate (Litman, 1999).

2.3.2 Society

Car-sharing helps make communities more alive, attractive, safe, and less dependent on the private automobile, and contribute to a range of transportation, housing, economic development and social justice goals (City Car Share, 2013).

2.3.2.1 Save Money and Go Green

Car-sharing is an ideal for people who only need a car occasionally and or when the need arises. By car-sharing scheme, people still can access to a private car without having responsibilities of ownership such as obtain a Certificate of Entitlement (COE), car insurance premium, car maintenance and repair costs, monthly installment, season car parking charges and road tax. In Singapore, 87% of members in NTUC’s car-sharing co-op average only 2,000km in distance driven each year, which is much less than average mileage of the average private car owner (Singapore Environmental Vision, 2013). Car sharing saves you money, it’s greener, more affordable, and less stressful than driving and paying for a car you don’t even need anymore (Cereplast, 2013).

2.3.2.2 Provide Mobility

Car-sharing provides access to a vehicle for low-income households and others without a car, helping them to fully participate in the region’s opportunities (CityCarShare, 2013). Low-income households may not be able to afford the expenses as a car ownership, thus public transport maybe their only option. Car-sharing can provide access for job interviews, serve as an “emergency ride home”, and meet the demand for occasional shopping and leisure trips (CityCarShare, 2013). With car-sharing scheme, they are now financially possible to join, in turn improving mobility by providing access to a vehicle.

2.3.2.3 Improves Commuting Options

Car-sharing offers a commuter option that may work better than other methods of transportation. With a car-sharing option, a public commuter is empowered to decide the best way to reach his or her destination, i.e. by bus, MRT, taxi or to drive a car (CSAS, 2013). Currently, there are about 300 car-sharing vehicles located in over 100 locations in Singapore (Land Transport Authority, 2013). It is very convenient for users to access a car-sharing. Also, car-sharing provides the flexibility and convenience of a car when driving is a better choice compared to the buses, MRT or taxis.

2.3.3 Government

Transport issues affect the average Singaporean in a very intimate manner.