The application of choice-based conjoint model to study government authorities preference: A case of traffic-subsidy-pollution related policy in Indonesia

Abstract

A Case of Traffic-Subsidy-Pollution Related Policy in Indonesia According to the UN, air pollution kills more than 3 million people each year (UN-Habitat 2007). Despite the magnitude of the impact, delays in making decisions about the environment are quite common among governments worldwide. The purposes of this study are twofold. First, the study is to investigate the relative strength of attributes of environmental policy such as methods of vehicle restriction, percentage of reduction in lead (and CO2) content, and percentage of subsidy reduction. Second, the study is to test government choice when it faces conservative, "scientific," and popular policy alternatives. To achieve both objectives this research uses an experimental method. The orthogonal design is adopted for stimuli presentation and conjoint analysis is used for data analysis. The research participants are students of an accounting graduate program of a state university in Java (Indonesia). The results suggest CO2/lead reduction has the strongest effect on policy maker preference. In addition, those policy makers tend to prefer the status quo condition which indicates conservative views. This is demonstrated by the tendency of their choice on an alternative policy package which requires mini- mum changes compared with the existing policies (a maximum utility of 64.3 percent vs. 28.6 percent and 7.1 percent of other alternatives). In addition, bureaucrats tend to play "safe" (namely the reduction of lead content in gasoline) when the possibility of resistance is imminence. Some consequences of the research findings are also discussed.