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Effects of policy instruments on electric scooter adoption in Jakarta, Indonesia: A discrete choice experiment approach

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  • Choi, Siwon
  • Kwak, Kyuil
  • Yang, Soyoung
  • Lim, Sesil
  • Woo, JongRoul

Abstract

Electrification of the transport sector is expanding in both developing and developed countries in response to air pollution and climate change. Indonesia, the world’s 10th biggest CO2 emitter having the world’s third largest two-wheeler market, aims to deploy 2.1 million electric two-wheelers by 2025 and is developing electric vehicle policies. This study designs a consumers’ choice model for buying a scooter in Jakarta, Indonesia, and simulates the effects of two supportive policies to expand electric two-wheelers (providing subsidies and building charging infrastructure) using a discrete choice experiment. We calculate the budget required for these subsidies. The results show that people in Jakarta highly prefer electric scooters and consider their environmental impacts. A 20% subsidy increases the estimated annual market share of new electric scooter sales to 10%. In addition to a 20% subsidy, building charging infrastructure for electric scooters to the same level as conventional gas stations leads to estimated new sales of electric scooters reaching 21%. This study suggests the need to develop comprehensive policy packages to successfully deploy electric two-wheelers in Jakarta and provides reference data to improve the efficiency and effectiveness of related policies.

Suggested Citation

  • Choi, Siwon & Kwak, Kyuil & Yang, Soyoung & Lim, Sesil & Woo, JongRoul, 2022. "Effects of policy instruments on electric scooter adoption in Jakarta, Indonesia: A discrete choice experiment approach," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 373-384.
    • Handle: RePEc:eee:ecanpo:v:76:y:2022:i:c:p:373-384
    DOI: 10.1016/j.eap.2022.08.015
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    References listed on IDEAS

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    More about this item

    Keywords

    Policy instrument; Electric vehicle; Electric scooter; Technology adoption; Choice experiment; Discrete choice model;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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