Study of the Incentive Caused by the Scrappage Program in Accelerating Old-Car Replacement in Order to Reduce Gas Emissions from Gasoline Passenger Cars in Indonesia

<jats:p>This paper describes a scenario designed to reduce the emission level of non-euro cars that makes up more than 80% of the current car stock in 2013, even though the number of non-euro cars is only a maximum of 24% of the total population. We have applied an incentive for people to replace their non-euro car with a newer LCGC car through a scrappage program. Willingness to change was determined through a questionnaire to determine the respondent’s willingness to change to an LCGC car. From the survey, the financial aspect still dominated the motivation behind the replacement. This was shown from the choice of the highest incentive fee of $2,000 USD per unit. By applying 78% and 82% to describe the probability of changing to the LCGC car and the incentive option of $2,000 USD respectively, it was proven that the incentive program can reduce the population of non-euro cars. From the results, it can be seen that emission gases CO, NO, and HC decreased significantly; CO by 59.3%, NO by 68.1%, and HC by 35.4% compared to without the scrappage incentive program by 2030. Because each unit is replaced with a LCGC car, the population balance is zero. The increase of the emission level from the additional number of LCGC cars is not significant compared to the emissions from non-euro cars. We conclude that the incentive program for non-euro cars is one of the most effective ways to reduce the gas emission level.</jats:p>