THE INFLUENCE OF INCOME ON HOUSEHOLD MOTORCYCLE OWNERSHIP IN BULELENG REGENCY, BALI

Abstract:  This  study  investigates  the  influence  of  income  on  household motorcycle  ownership  in  Buleleng  Regency,  Bali  using  a  Multinomial  Logit Model. The household income in 2011 is about 15%, 28% and 57% to influence a household  owning  no,  1  and  more  than  1  motorcycles  respectively.  The probability of motorcycle ownership rises substantially by more than 15% for the next  20  years  if  household  income  in  Buleleng  Regency  increases.  This  is particulary applied for the household owning more than 1 motorcycle. In contrast, the probability of a household owning no and 1 motorcycle drops significantly by almost  32%  and  14%  respectively  for  the  next  20  years  if  household  income  in Buleleng  Regency  increases.  A  huge  number  of  motorcycles  used  on  the  road continuously may lead to serious transport problems for the next few years. This is related to the negative impacts of transport including road accidents and traffic pollution. Improving the existing public transport and introducing a high quality public  transport  service  within  and  to/from  Buleleng  Regency  is  urgently required. The fare of such high quality public transport service 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  Ownership,  Multinomial  Logit Model
Author: D. M. Priyantha Wedagama
Journal Code: jptsipilgg130002

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