Probability of willingness to pay road pricing based on the perspective of households in Jakarta

Abstract

The determination of tariff is necessary for a city willing to implement electronic road pricing such as Jakarta. Therefore, this study was conducted to investigate the effect of household characteristics on the willingness and probability to pay more than IDR 20,000. The focus was on those commuting to work within the city where the majority of people work in the formal sector. Moreover, the Willingness to Pay IDR 20,000 was proposed as a variable while age, number of family members, income, vehicle ownership and the work type were used as the explanatory variables. The results showed the general effect of households in receiving ERP rates was low as indicated by the 16.9% recorded. However, family with total members of 4-5 people and owning a vehicle was observed to have a partially great and significant probability to increase the willingness to pay tariffs > IDR 20,000 while those earning income <IDR 5 million and working as private employees were discovered to have contributed negatively and significantly even though the probability was small. There is, therefore, the need for a comprehensive study when determining tariffs and the amount is recommended to be more expensive than public transport.