Abstract

Transportation is crucial for the progress of a nation, and sustainable transportation policies are necessary for long-term development. Among these policies, fuel and vehicle pricing strategies significantly impact the economy, society, and environment. To effectively formulate transportation policies, policymakers must understand the factors influencing policy implementation and explore different approaches to fuel pricing, vehicle pricing, and sustainable transportation. This study aims to develop a comprehensive causal loop diagram (CLD) using the System Dynamics (SD) approach to identify factors and interrelationships within the transportation system. The CLD provides a holistic overview of the complexities and feedback loops inherent to fuel and vehicle pricing policies. The findings contribute to evidence-based decision-making and facilitate the formulation of effective and sustainable transportation policies in the country.

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