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Cost Benefit Analysis for Fuel Quality and Fuel Economy Initiative in Indonesia.


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A policy evaluation is needed by goverment when they want to issue a regulation, particularly if that proposed policy will affect market prices, import duties, taxes, subsidies or other charges imposed on production and distribution process. Costs- benefits analysis as well as Cost-effectiveness analysis are needed by policy makers to evaluate policies about their policy effects on economic efficiency, contribution to the alleviation ofpoverty, and support for good governance. This study identified policy options that are expected to give effect to the reduction ofemissions and ultimately provide economic benefits for Indonesia. Cost benefit and cost-effectiveness analysis is used to evaluate several policy options and provide recommendations the most appropriate policy options. Many studies have shown that emissions from motor vehicles have a very significant impact to the quality of life of the people, especiallyin urban areas. A high level pollutant is harmful to public health and can be ultimately reduce people’s productivity in work and also potentially required addition cost of living for health maintenance. Jakarta case in 2010 for instance, 57.8% people were suffered by various air pollution-related illness and disease, and paid IDR 38,5 Trillion to treating its. Therefore efforts to reduce emissions from motor vehicles produce air pollution as well as green house gas (GHG) is very important action to give impact on public health and the environment, and global warming mitigation. In addition, with the high price of international crude oil and the same time the declining of oil reservesof Indonesia, the need for a reduction in fuel consumption of the vehicle must begin to do by thinking to make an efforts in developing alternative fuels. Fortunately, there effort to reduce vehicle emissions will indirectly affect to the need of fuel subsidy which is quite burden for national budget.
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... A limited number of studies have been conducted on the health and economic burdens attributable to air pollution in Jakarta. However, the studies mainly looked at acute symptoms and incidence of diseases attributable to air pollution, such as asthma attacks, respiratory symptoms, the incidence of COPD, incidence of pneumonia, incidence of bronchitis, and incidence of other respiratory illnesses [34][35][36][37]. A study by Resosudarmo & Napitupulu predicted 7900 deaths due to air pollution in 2015 [35]. ...
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(1) Background: This study aimed to quantify the health and economic impacts of air pollution in Jakarta Province, the capital of Indonesia. (2) Methods: We quantified the health and economic burden of fine particulate matter (PM2.5) and ground-level Ozone (O3), which exceeds the local and global ambient air quality standards. We selected health outcomes which include adverse health outcomes in children, all-cause mortality, and daily hospitalizations. We used comparative risk assessment methods to estimate health burdens attributable to PM2.5 and O3, linking the local population and selected health outcomes data with relative risks from the literature. The economic burdens were calculated using cost-of-illness and the value of the statistical life-year approach. (3) Results: Our results suggest over 7000 adverse health outcomes in children, over 10,000 deaths, and over 5000 hospitalizations that can be attributed to air pollution each year in Jakarta. The annual total cost of the health impact of air pollution reached approximately USD 2943.42 million. (4) Conclusions: By using local data to quantify and assess the health and economic impacts of air pollution in Jakarta, our study provides timely evidence needed to prioritize clean air actions to be taken to promote the public’s health.
... It is estimated that in 2010, 57.8% of the residents of Jakarta experienced air-pollution related diseases such as asthma, broncho-pneumonia, and chronic obstructive pulmonary disease. The associated social cost was estimated to be around 38.5 trillion Indonesian rupiahs (US$3.0 billion), a figure that not include any estimate of the reduction in the productive capacity of the workforce (Safrudin et al., 2013). Thus, it is expected that transport emissions management policies could bring significant health benefits while also contributing towards the containment of the socio-economic costs of local air pollution. ...
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This paper assesses the role that both vehicle emissions and fuel standards can play in moderating the projected increase in emission of pollutants from the road transport sector of Association of Southeast Asian Nations (ASEAN) member countries by adopting international best practice as it currently stands. It concludes that much could be done within ASEAN to align with international best practice in terms of vehicle emission regulations in the transport sector. In addition, exploring alternative fuels such as natural gas, ethanol, and biodiesel could also offer substantial benefits in reducing air pollutants and emissions in the short term as member countries develop their refining capabilities to produce ultra-low sulphur fuel. Until then, it is likely that vehicle emission regulations may be held back at the Euro III (3) level. Despite that limitation, improving existing motorcycle emission regulations could provide abatement possibilities, while also improving local ambient conditions. Recognizing that international best practice is limited for motorcycle emission regulations, ASEAN member countries could play a key role in drafting and possibly shaping such emission standards.
To study the effects of fuel sulfur content on the characteristics of diesel particle emitted from a typical engine used in China, two types of diesel fuel with sulfur content of 30 ppm and 500 ppm were used in this engine dynamometer test under six operation conditions corresponding to 20%, 50% and 80% load at 1400 rpm and 2300 rpm engine speeds, respectively. Gaseous pollutants and particulate matter (PM) emissions were sampled with AVL AMA4000 and Model 130 High-Flow Impactor (MSP Corp), respectively. More specifically, the PM mass, total carbon (TC), organic carbon (OC), elemental carbon (EC) and water-soluble ion distribution were also measured. Compared with high sulfur diesel, the application of low sulfur diesel can lower fuel-based PM emissions by 9.2–56.6%. At 1400 rpm, the low sulfur diesel decreased both OC and EC by 5–34% and about 20%; while at 2300 rpm, the low sulfur fuel decreased OC by 33–57% and increased EC emission, resulting in a lower OC/EC ratio. The evidence implicating that OC oxidation was promoted by low sulfur diesel, but the effect on EC oxidation was dependent on engine speed. The linear regression has been conducted between TC and PM10, and the slopes were 0.88 and 0.80 for low sulfur diesel and high sulfur one, respectively. Higher sulfate content was detected in the 0.13 μm particles when using the high sulfur diesel, but the percentage of sulfate was 0.9% for PM10 from both diesel fuels. Comparing with that of 500 ppm, EC increased sharply to a maximum of 114% in particles of 0.13 μm when using 30 ppm sulfur diesel at 2300 rpm.
Despite improvements in vehicle and fuel technology that have led to reductions in primary particle emissions, high PM10 levels have been observed in recent years in several European cities, including Athens (Greece) and Birmingham (UK). In certain cases, high PM10 concentrations have persisted over periods of several hours, resulting in exceedences of EU target values. In order to design effective PM10 control strategies, it is essential to develop an understanding of local and remote sources of particulate matter, as well as of the factors influencing its temporal and spatial variability in urban areas. In this study, PM10 data from Athens and Birmingham were analysed for relationships to other pollutants (NOx, CO, O3 and SO2) and meteorological parameters (wind velocity, temperature, relative humidity, precipitation, solar radiation and atmospheric pressure) during a 3-year period (2001–2003). Significant positive correlations between PM10 and NOx, CO, and solar radiation were observed at the selected monitoring sites during cold seasons. On the other hand, negative correlations between PM10 and O3, wind speed and precipitation were observed during the same seasons. However, these correlations became weaker during warm seasons, probably due to secondary aerosol formation and enhanced soil dust re-suspension. Furthermore, principal component and regression analyses were used to quantify the contribution of non-combustion sources to the observed PM10 background levels. This contribution ranged between 45% and 70% in Birmingham and 41–74% in Athens. Finally, several winter and summer PM10 episodes from each city were analysed using a back trajectory model, in order to identify the origin of the polluted air masses. It was found that long-range transport of particles from continental Europe had a marked effect on PM10 background levels in Birmingham, while the local weather had a stronger influence on PM10 levels in Athens.
This paper describes the effect of fuel sulfur levels on vehicle emissions. The project was undertaken to provide a basis for lowering sulfur levels in fuel in order to establish necessary vehicle emission standards. A matrix was developed to describe the relationship between fuel sulfur levels and vehicle emissions based on vehicle testing data in China and the literature research. The matrix was then integrated into a vehicle behavior forecasting spreadsheet to analyze the vehicle emission reduction potentials under several fuel desulfurization scenarios. The results of comparing the total emissions in typical years for several scenarios show that the best emission control effect can be achieved by completely matching the fuel sulfur requirements with the emission standards. This assessment of vehicle emission standards and refinery costs to produce low sulfur fuel provides a critical insight into the importance of reducing fuel sulfur as emission requirements become more stringent.
To develop efficient strategies for pollution control, it is essential to assess both the costs of control and the benefits that may result. These benefits will often included improvements in public health, including reductions in both morbidity and premature mortality. Until recently, there has been little guidance about how to calculate the benefits of air pollution controls and how to use those estimates to assign priorities to different air pollution control strategies. The author describes a method for quantifying the benefits of reduced ambient concentrations of pollutants (such as ozone and particulate matter) typically found in urban areas worldwide. The author then applies the method to data on Jakarta, Indonesia, an area characterized by little wind, high population concentration (8 million people), congested roads, and ambient air pollution. The magnitude of the benefits of pollution control depend on the level of air pollution, the expected effects on health of the pollutants (dose-response), the size of the population affected and the economic value of these effects. The results for Jakarta suggest that significant benefits result from reducing exposure to both outdoor and indoor air pollutants. For example, if annual concentrations of particulate matter were reduced to the midpoint of the World Health Organization guideline (and former U.S. ambient standard), the estimates indicate a reduction per year of 1,400 premature deaths (with a range of 900 to 1,900), 49,000 emergency room visits, 600,000 asthma attacks, 7.6 million restricted activity days (including work loss), 124,000 cases of bronchitis in children, and 37 million minor respiratory symptoms. In the case of Jakarta, the methodology suggests that reducing exposure to lead and nitrogen dioxide should also be a high priority. An important consequence of ambient lead pollution is a reduction in learning abilities for children, measured as I.Q loss. Apart from that, reducing the proportion of respirable particles can reduce the amount of illness and premature mortality. Clearly, air pollution represents a significant public health hazard to residents of Jakarta and other cities consistently exposed to high levels of air pollution, such as Bangkok, Mexico City, and Santiago, Chile.
The Government of Thailand within a five-year period (1991-95) introduced a series of initiatives that resulted in the elimination of leaded gasoline and reduction of ambient lead by a factor of 10. This report describes the strategies the government employed: educating about the dangers of airborne lead; setting a lower at-pump price for unleaded gasoline; helping the oil companies establish a system to distribute unleaded gasoline throughout the country; conducting monitoring and follow-up studies; and adjusting environmental regulations as necessary to support these policies.
Cleaner Fuels, Policy Guidelines for Reducing Vehicle Emission in Asia
ADB, (2003). Cleaner Fuels, Policy Guidelines for Reducing Vehicle Emission in Asia [].
Impact of Unleaded Gasoline Introduction on the Concentration of Lead in the Air of Dhaka, Bangladesh' Air and Waste Management Association
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Biswas, S. K.; Tarafdar, S. A.; Islam, A.; Khaliquazzaman, M.; Tervahattu, H., and Kupiainen, K., (2003). 'Impact of Unleaded Gasoline Introduction on the Concentration of Lead in the Air of Dhaka, Bangladesh' Air and Waste Management Association, November (based on &PaperID=1139).
Fuel Quality and Vehicle Emission Standards: Cost and Benefit Analysis , prepared for MVEC Review of Vehicle Emissions and Fuel Standards Post
  • Pty Coffey Geoscineces
  • Ltd
Coffey Geoscineces Pty Ltd (2003). Fuel Quality and Vehicle Emission Standards: Cost and Benefit Analysis, prepared for MVEC Review of Vehicle Emissions and Fuel Standards Post 2006, Coffey, Australia CURRENT TRANSPORTATION ISSUES IN JAKARTA AND ITS IMPACTS ON ENVIRONMENT, Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1792 -1798, 2005