The purpose of this study is to present many polices of transportation demand management and ways to institutionalize them in order to actively introduce the total number of vehicles system as a strategy to solve the traffc problems in the Jeju area and protect the environment on Jeju Island. Various measures and polices of transportation demand management as well as the total number of vehicle system are presented. These are considered as long-term policies which need to be applied to the Jeju area. Implementing these policies will need some time to attract the public’s policy compliance and they need to be institutionalized through a variety of ways. Below are the ways to achieve this goal: (1) Introduction of the total number of vehicles system, (2) introducing motor fuel tax on energy consumption, (3) differentiation of parking fees based on types of vehicles, (4) charging for mileage, (5) collecting congestion fees and levying garage option, and (6) managing license plates through auction.

Since 'The Act on Private Investment of The Infrastructure' was established in 1994, private investment as well as government's investment in transport infrastructure has been active. However investment in transport infrastructure has more risks than others' due to uncertainty both in traffic volume and in construction cost. In the current appraisal procedure of deciding transportation infrastructure investment, instead of risk management, the sensitivity analysis considering only the changes of benefit, cost and social discount rate which are main factor affecting economic feasibility is carried out. Therefore the uncertainty of various factors affecting demand, cost and benefit are not considered in feasibility study. In this study the problems in current investment appraisal system were reviewed. Using Delphi technique the major factors which have high uncertainty in feasibility study were surveyed and then improvement plan was suggested in the respective of classic 4 step demand forecasting method. The range estimation technique was also mentioned to deal with the uncertainty of the future.