Fiscal Policies to Address Air Pollution from Road Transport in Cities and Improve Health: Insights from Country Experiences and Lessons for Indonesia - Inclusive Green Economy

The objective of this study is to support the Indonesian and Jakarta governments in their efforts to address air pollution and GHG emissions by proposing a possible package of green fiscal policies in the transport sector. The negative health impacts of air pollution in Indonesia are concentrated in the very densely populated Special Capital City Region (DKI) Jakarta. Successful policy interventions in the city could potentially have a significant impact on human health and well-being of many Indonesian citizens. Thus, DKI Jakarta has been chosen as the focus of this study to maximise the impact of the measures proposed. This study analyses existing regulatory and fiscal instruments to reduce the health impacts from pollution related to road transport in DKI Jakarta and proposes ways in which these instruments could be improved. It also draws on international best practice to propose a package of GFPs with the potential to reduce harmful emissions in DKI Jakarta.