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Easing the traffic: The effects of Indonesia’s fuel subsidy reforms on toll-road travel

Burke, Paul; Batsuuri, Tsendsuren; Yudhistira, Muhammad Halley


Indonesia has serious traffic jams. This study uses data from 19 Indonesian toll roads over 2008–2015 to calculate the effects of Indonesia’s historic recent fuel subsidy reforms on motor vehicle travel. The timing of the reforms was determined by budgetary and political factors, providing a suitable setting for estimating a causal effect. We control for a broad set of other factors potentially influencing traffic flows. Estimates using monthly data suggest an immediate fuel price elasticity of...[Show more]

CollectionsANU Research Publications
Date published: 2017-11
Type: Journal article
Source: Transportation Research Part A: Policy and Practice
DOI: 10.1016/j.tra.2017.08.003
Access Rights: Open Access


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