The COE may have worked initially to control car ownership, but now, the exclusivity of being able to afford the COE actually makes people "need" to have a car. Once they have the car, the cost of ownership is already sunk into it, so they have to drive it as much as possible, defeating the effect of the COE on reducing congestion. Thus, by making cars one of the "5 C's," the COE is having the opposite effect from what was intended.movingtospore wrote:http://www.bloomberg.com/news/2014-02-1 ... e-day.html
I'd love to see an economic analysis of how the COE acts as some sort of weird incentive to buy cars rather than not buy cars.
It also seems to guarantee that of all cars that are owned the maximum number will be on the road, too.Barnsley wrote:The COE system guarantees the max number of cars on the road at any one time.
Yes, there have been several isolated months in the past when the COE was only $50.Barnsley wrote:Has there ever been an occasion when all COE's have not been bought in any month?
Limit supply and you create demand.
maneo wrote: However, a noveau riche MB owner isn't likely to be fazed by high parking fees, so it's not a surprise that they are now clogging HK's roads. If they can afford the Benz they can afford the parking & a COE is not going to deter them from buying their Benz. It will only hurt the occasional drivers that own the more affordable cars, who were not clogging the roads anyway.
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