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The Application of Choice-Based Conjoint Model to Study Government Authorities Preference: A Case of Traffic-Subsidy-Pollution Related Policy in Indonesia

Gadjah Mada International Journal of Business

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Title The Application of Choice-Based Conjoint Model to Study Government Authorities Preference: A Case of Traffic-Subsidy-Pollution Related Policy in Indonesia
 
Creator Gudono, Gudono
 
Description According to the UN, air pollution kills more than 3 millionpeople each year (UN-Habitat 2007). Despite the magnitude ofthe impact, delays in making decisions about the environmentare quite common among governments worldwide. The purposesof this study are twofold. First, the study is to investigate therelative strength of attributes of environmental policy such asmethods 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 facesconservative, “scientific,” and popular policy alternatives. Toachieve both objectives this research uses an experimentalmethod. The orthogonal design is adopted for stimuli presenta-tion and conjoint analysis is used for data analysis. The re-search participants are students of an accounting graduateprogram of a state university in Java (Indonesia).The results suggest CO2/lead reduction has the strongesteffect on policy maker preference. In addition, those policymakers tend to prefer the  status quo condition which indicatesconservative views. This is demonstrated by the tendency of theirchoice on an alternative policy package which requires minimum changes compared with the existing policies (a maximumutility of 64.3 percent vs. 28.6 percent and 7.1 percent of otheralternatives). In addition, bureaucrats tend to play “safe”(namely the reduction of lead content in gasoline) when thepossibility of resistance is imminence. Some consequences of theresearch findings are also discussed. Keywords: conjoint analysis; mixed environmental; public policy; utility function
 
Publisher Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada
 
Date 2010-09-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal.ugm.ac.id/gamaijb/article/view/5505
10.22146/gamaijb.5505
 
Source Gadjah Mada International Journal of Business; Vol 12, No 3 (2010): September - December; 377-391
2338-7238
1411-1128
 
Language eng
 
Relation https://journal.ugm.ac.id/gamaijb/article/view/5505/4477