A Review on Transportation Demand Management

PRABOWO SUNARING PUTRO,

2010 | Skripsi | S1 Economics

Transportation Demand Management (TDM) has become an important aspect in improving the societal welfare. It helps to improve the societal welfare by managing the use of transportation modes through the implementation of different measures. The implementation of these measures affects Marginal Social Cost (MSC), Marginal Private Cost (MPC), and Demand to improve societal welfare with different mechanisms.

There are three main mechanisms that can be identified: the mechanism of decreasing MSC, the mechanism of increasing MPC, and the mechanism of shifting demand. The first two mechanisms directly impact the overall societal welfare since the mechanisms directly affect the MSC and MPC, two aspects that directly impacts the overall societal welfare. The last mechanism, which is the mechanism of shifting demand, however, does not directly impact the overall societal welfare since it affects demand instead of MSC and MPC. Measures in this mechanism when implemented alone have questionable effect on the societal welfare.

Considering the TDM mechanisms, this paper suggests to focus on the implementation of measures that fall into the mechanism of decreasing MSC and the mechanism of increasing MSC. This paper also suggests combining the measures that fall into these mechanisms to get an optimum result. In order to better strengthen the implementation of the measures, this paper suggests the implementation of measures in the mechanism of shifting demand to support the measures in the other two mechanisms.

Kata Kunci : Transportation Demand Management, societal welfare, Marginal Social Cost, Marginal Private Cost