THE INFLUENCE OF INCOME ON HOUSEHOLD CAR AND MOTORCYCLE OWNERSHIPS IN DENPASAR CITY, BALI

Abstract:  This  study  investigates  the  influence  of  household  income  on  both car  and  motorcycle  ownerships  in  the  city  of  Denpasar  using  a  Multinomial Logit Model. The household income is about 61%, 17% and 61% more likely to influence  a  household  owning  1  motorcycle  and  1  car,  2  or  more  motorcycles and 0 car, and 2 or more motorcycles and 1 car respectively than 1 motorcycle and  no  car.  The  probability  of  both  car  and  motorcycle  ownerships  increases substantially  by  more  than  4%  in  the  next  20  years  if  household  income  in Denpasar  city  rises.  This  is  particulary  applied  for  the  household  owning  1 motorcycle and 1 car and 2 or more motorcycles and 1 car. The probability of a household  owning  1  motorcycle  and  no  car  ownership  however,  drops significantly  by  almost  10%  in  the  next  20  years  if  household  income  in Denpasar  city  increases.  Consequently,  the  household  income  significantly influences both car and motorcycle ownerships in the city of Denpasar. A huge number  of  car  and  motorcycle  uses  on  the  road  continously  leads  to  serious transport problems in the city of Denpasar for the next few years. This is related to the negative impacts of transport in particular road safety and environmental impact.  Improving  the  existing  public  transport  and  introducing  a  high  quality public  transport  service  within  and  to/from  Denpasar  city  is  urgently  required. The fare of such high quality public transport service in Denpasar city however, must  be  sufficiently  low  to  compete  with  the  cost  of  riding  a  motorcycle.  In addition,  a  significant  amount  of  fare  subsidy  from  both  local  and  central government is considerably required
Keywords: Household Income, Motorcycle, Car, Ownerships
Author: D. M. Priyantha Wedagama
Journal Code: jptsipilgg120005

Artikel Terkait :