Towards the Green Economy

Population growth in urban areas has a major effect on developments in various sectors, both formal and informal. As a result of these developments, population mobility is getting higher so that it affects traffic density. As a result, there are traffic jams that cause considerable losses to road users. The losses that occur will have an impact on the waste of fuel which results in an increase in vehicle operating costs. This study aims to calculate the value of the loss due to urban traffic congestion in Batu City. This study also calculates the value of the greenhouse gas effect caused by activities in transportation sector in Batu City. The data used in this study are primary and secondary data. Primary data were obtained from interviews and distributing questionnaires to 30 samples of motorists in Batu City while secondary data were obtained from the Central Bureau of Statistics (BPS) of Batu City. Economic value calculations are carried out to calculate the values of activities that cannot be monetized, such as time losses due to congestion and greenhouse gas effects. To calculate them, we use the travel cost method and the replacement cost method. The calculation results show that the environmental degradation caused by transportation sector activities in Batu City from 2015 to 2019 is in the range of IDR 1 1.5 trillion. As a tourist destination, it is advisable for the Batu City government to rearrange the transportation system so that congestion can be reduced.