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Environmental Economic Efficiency for the Road Construction in Indonesia: An Analytic Hierarchy Process


  • Any Wahyuni


  • Yuzuru Miyata



Environmental Economic Efficiency for the Road Construction in Indonesia: An Analytic Hierarchy Process ANY WAHYUNI Graduate School of Environment and Life Science Engineering, Toyohashi University of Technology YUZURU MIYATA, Hiroyuki Shibusawa Graduate School of Architecture and Civil Engineering, Toyohashi University of Technology In an environmental management, there is some uncertainty over the effects of actions on the environment, and of the impact on humans of subsequent environmental changes. The extent of this uncertainty is considerable. Conflicts often arise when should establish measures to fight the climate change to achieve certain economic goals. Society should take action before such uncertainty is resolved, since the costs of not taking action may well be greater than the costs of preventative or anticipatory action taken now, especially when the absence of action today leads to irreversible undesirable environmental consequences (Taylor, 1991). The methodology proposed enables the construction of a set of efficient policies in terms of economic growth and polluting emissions, at the same time it enlarges the set of policy goals. Maros-Watampone-Indonesia road passes through a critical geometric conservation area where it is a barrier to the development improvement. On the other hand, the Government has a limited budget to choose the best development program; therefore, we made an evaluation of the efficiency of economic resources based on: an analytic hierarchy process for selection of the best construction. Previous studies recommend that three proposed alternative constructions can be used: 1. Elevated Bridge, 2. Cut and Fill, 3. Tunnel system. The Government invited community members to participate in selection the best type of construction that can be applied at their region. By using the Analytic Hierarchy Process (AHP), the results showed that the criteria of benefits (0.300) as a major factor in determining the priority of construction and the second is environmental criteria (0.224). In fact; construction cost (0.081) and maintenance criteria (0.054) had no significant effect. An elevated bridge construction is the most suitable construction to be applied (0.528), followed by cut and fill construction (0.248) and the tunnel system (0.223) respectively. The higher contribution of benefit and environmental criteria are indicated that the community preferences cannot be measured with price system. The construction activity consumes fairly large energy and created CO2 emissions simultaneously. By using ?Life Cycle Assessment' (LCA), we estimate of the CO2 emissions indicates that the elevated bridge construction has the lowest (1.31 TonCO2/km) emissions than the tunnel construction (1.79 TonCO2/km). The decision-making process showed that the public started to pay attention for their quality of life, and the environmental effect caused by their development activity. Keywords: Analytic Hierarchy Process, CO2 Emissions, Economic Environmental Efficiency JEL codes: R, R00, R5

Suggested Citation

  • Any Wahyuni & Yuzuru Miyata, 2014. "Environmental Economic Efficiency for the Road Construction in Indonesia: An Analytic Hierarchy Process," ERSA conference papers ersa14p1085, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa14p1085

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    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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