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Valuing the Benefits of Cleaner Air in Jakarta Metropolitan Area

  • Mia Amalia
  • Budy P. ResosudarmoEmail author
  • Jeff Bennett
  • Arianto Patunru
Chapter
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 24)

Abstract

Air pollution negatively impacts the society in the form of health problems, unpleasant odour and low visibility. We estimate the benefit of having cleaner ambient air for the Jakarta Metropolitan Area’s (JMA) citizens. The value people place on an improvement in air quality resulting from the implementation of three new transportation policies is estimated using choice modelling with four attributes: restricted activity days (RADs), visibility, odour and implementation costs. A public survey was conducted in the JMA across approximately 650 respondents. The implicit prices for individual attributes are estimated using conditional logit (CL) and random parameter logit (RPL) models. The results show that the respondents have significantly positive values for a lower number of RADs and less unpleasant odour. On average, respondents in the JMA are willing to pay from USD54 to USD57 per household per annum over a 3-year period for the implementation of a new transportation policy. This translates into a total benefit to the community in the range of USD219 million to USD230 million per year.

Keywords

Air pollution Cost-benefit analysis Choice modelling Transportation policy Jakarta Metropolitan Area 

Notes

Acknowledgements

The authors acknowledge the financial support of the Economy and Environment Program for Southeast Asia, the Australian National University’s Vice Chancellor’s Office and Australia’s DFAT-Aid. All mistakes however are the authors’ own responsibility.

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Copyright information

© Springer Science+Business Media Singapore 2017

Authors and Affiliations

  • Mia Amalia
    • 1
  • Budy P. Resosudarmo
    • 2
    Email author
  • Jeff Bennett
    • 3
  • Arianto Patunru
    • 2
  1. 1.Indonesian National Development Planning AgencyJakartaIndonesia
  2. 2.Arndt-Corden Department of EconomicsAustralian National UniversityCanberraAustralia
  3. 3.Crawford School of Public PolicyAustralian National UniversityCanberraAustralia

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