Citywide Effects of High-Occupancy Vehicle Restrictions: Evidence from the Elimination of '3-in-1' in Jakarta

44 Pages Posted: 4 Mar 2017

See all articles by Rema Hanna

Rema Hanna

Harvard University - Harvard Kennedy School (HKS)

Gabriel Kreindler

Massachusetts Institute of Technology (MIT), Department of Economics, Students

Benjamin A. Olken

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Society of Fellows

Date Written: December 1, 2016

Abstract

We use high frequency data on traffic congestion from Google Maps to measure the impact of Jakarta’s main traffic congestion reduction policy, a high-occupancy vehicle restriction policy. We find that the unexpected lifting of the policy led to a large, sudden and persistent increase in travel delay during operating hours on affected roads, with delays rising between 45-85 percent. Surprisingly, this increase in traffic was not just substitution of traffic from unaffected roads to previously restricted roads. Instead, we find that the removal of the high-occupancy vehicle restriction led to worse traffic throughout the city, both on other roads that had never been restricted and during times of the day when there restrictions had never been in place previously. The results suggest that targeted restrictions on road use can have positive general equilibrium effects on traffic throughout the city.

Suggested Citation

Hanna, Rema and Kreindler, Gabriel and Olken, Benjamin A., Citywide Effects of High-Occupancy Vehicle Restrictions: Evidence from the Elimination of '3-in-1' in Jakarta (December 1, 2016). HKS Working Paper No. RWP17-008. Available at SSRN: https://ssrn.com/abstract=2927179 or http://dx.doi.org/10.2139/ssrn.2927179

Rema Hanna (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

Gabriel Kreindler

Massachusetts Institute of Technology (MIT), Department of Economics, Students ( email )

Cambridge, MA
United States

Benjamin A. Olken

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

50 Memorial Drive
E52-391
Cambridge, MA 02142
United States
617-253-6833 (Phone)
617-253-1330 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
617-588-1407 (Phone)

Harvard University - Society of Fellows

Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
38
Abstract Views
269
PlumX Metrics