Effect of Built Environment on Gasoline Consumption in a Developing Megacity

Abstract

This paper analyzes the effect of the built environment on household gasoline consumption with data collected from 948 households in the metropolitan area of Jakarta, Indonesia. A structural equations model is developed to explain household gasoline consumption with motorcycle and car ownership as mediating variables. The results show that a smaller residence lot size and shorter access time to the nearest bus stop significantly decrease gasoline consumption. The access time to the nearest bus stop does not have an indirect effect through the ownership of cars or motorcycles but has a direct effect on gasoline consumption. In addition, the distance to the nearest regional core affects gasoline consumption positively through motorcycle ownership but does not affect it directly. Population density and neighborhood accessibility have a less significant impact on gasoline consumption, a finding supported by previous studies of developing cities. The results also show that the effect of residential self-selection is less significant. Finally, the estimated model is used to compute the potential impact of urbanization on gasoline consumption.

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