Carbon Tax Implementation in Transportation Sector to Encourage Low Carbon Emission

The implementation of carbon tax in the transportation sector aims to reduce carbon emissions and encourage the transition to sustainable mobility amidst increasing urbanization. In determining an effective carbon tax rate, economic, environmental, and social factors need to be considered, including the social cost of carbon, emission reduction target, economic impact, revenue for environmental programs, and social justice and equity. The social cost of carbon provides an estimate of the economic and social damage impacts of carbon emissions, so that the tax rate reflects comparable costs. The emission reduction target is consistent with national commitments and focuses on mitigating climate change in urban areas. The economic impact considers the effect of the carbon tax on energy prices, the competitiveness of the transportation sector, and the cost of living in Jakarta. Carbon tax revenues can be allocated to city environmental programs, such as the development of green transportation infrastructure and the integration of renewable energy. The social equity aspect ensures that this policy does not burden vulnerable groups and supports inclusiveness in access to transportation. In Jakarta, a carbon tax policy can facilitate the use of low-emission vehicles, accelerate the transition to public transportation and electric vehicles, and reduce dependence on fossil fuels. This approach is expected to create a more environmentally friendly urban transportation system, support the achievement of climate targets, and improve the overall quality of life in Jakarta.