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International Conference on Industrial Engineering & Operation Management
Grand Hyatt Bali, Indonesia. January 7-9, 2014

Understanding Dynamics of Green House Gases Impacts on Urban
Development: Jakarta Case Study
Modeling Approach to Support Policy Making

Akhmad Hidayatno, Irvanu Rahman, and Ricki Muliadi
System Engineering, Modeling and Simulation Laboratory
Industrial Engineering Department, Universitas Indonesia
systems.ie.ui.ac.id
IEOM 2014 - 272

1
Outline

This presentation is divided into four parts,
1

Background: Cities and Climate Change

2

Literature: Sustainable Development

3

Methodology: Modeling Approaches

4

Discussion

IEOM 2014 - 272

2
Cities Megatrend
Megatrends imply significant challenges for city decision makers

Megatrends

Sustainable Urban Development
Globalization & Urbanization
 Global players / trade volume increase
 2030: 60% of population in cities
 High density living demands for new
patterns in infrastructure
Demographic Change
 65+ generation will nearly double
by 2030 (from 7% to 12%)
 Need for adequate infrastructures
as well as health- and elder care

Climate Change
 Cities responsible for ~80% GHG
 Need for resource efficiency
and environmental care

 Cities are competing globally
to make their urban areas
attractive to live and to invest in

Competitiveness

Governance
Environment

Quality
of Life

 Challenge to balance between
competitiveness, environment and quality
of life, and to finance infrastructure
solutions
 Achieve committed CO2 targets

―Making Cities Work – Sustainable Urban Infrastructure‖ — Siemens (2012)
IEOM 2014 - 272

3
Jakarta’s Current Challenges and Concerns
Major Forces: Growing Population, Land Use, and Climate Change

1970

1980

1990

2000

4.546.500

6.503.400

8.259.300

8.385.600

Policies

Priorities

Regional Government Plan

1

Build Good Urban
Governance

Spatial Plans
(RTRW 2030)

IEOM 2014 - 272

2

GHG Mitigation Plan
(RAD-GRK 2030)

Develop Resilience
Eco-City

Coastal Defense
Strategy (JCDS)

3

Promote PublicPrivate Partnership

Electronic Road
Pricing (ERP)

Low Carbon
Transport (MRT, BRT)

4
Conflicting Demand between Policy Targets

Regional Government Targets (in 2030):

• Sustaining 7 - 8 % economic growth per annum
• 30 % emission reduction from BAU
• 30 % green space expansion

• Is it possible to reduce emission and expand the green space without

slowing operation and economic growth ?
• Can the green space satisfy emission reduction target ?
• At what costs ?

IEOM 2014 - 272

5
Research Objectives

▪

Develop integrated development model of
Jakarta to obtain understanding on how GHG
emission affects Jakarta’s urban system structure.

▪

The model consist of three modules:
economic; social; environmental, and it will run
for twenty five years, from 2006 to 2030.

▪ The resulting model will be used as a tool for
policy testing to help decision makers in tackling
Jakarta’s future challenges and achieving policies
targets (Future Research).

IEOM 2014 - 272

6
Outline

This presentation is divided into four parts,
1

Background: Jakarta and Climate Change

2

Literature: Sustainable Urban Development

3

Methodology: Modeling Approaches

4

Discussion

IEOM 2014 - 272

7
Sustainable Urban Development
Sustainable urban development focuses on balancing economic activities, social, and environment. (Chen, Ho, & Jan, 2006).

Integration of these three dimensions allows the government and stakeholders to develop long-term and
integrated visions for sustainable urban planning. (Rotmans, Asselt, & Vellinga, 2000).
Workforce, Household Consumption

Human
and Social
Capital

Economic
Capital
Revenue, Employment Opportunities

(+) investment
(-) Emission

Economic
resources,
absorb/
release
pollution

IEOM 2014 - 272

Environmental
Capital

Energy

Infrastructure

Health Effect

Environmental
awareness

8
Outline

This presentation is divided into four parts,
1

Background: Jakarta and Climate Change

2

Literature: Sustainable Urban Development

3

Methodology: Modeling Approaches

4

Discussion

IEOM 2014 - 272

9
Modeling Typology for Policy Making Process
We use exploratory approach in developing our model to focus on dynamic insight of behaviors, not the numbers produced
(predictive modeling). Model such as this one are useful, not because they predict the details of number, but because building and using
them improves our insight (Bankes, 1993).

Predictive Modeling

Exploratory Modeling

― trying to predict the unpredictable ‖

― the search for insight ‖

―Exploratory Modeling and the Use of Simulation for Policy Analysis‖ — Bankes(1993)
IEOM 2014 - 272

10
Model Concept: Threshold 21

Threshold 21 model is a National Sustainability Development Model developed by Millennium Institute (USA) using system dynamics.
The model consists of three dimensions of sustainable development, which has interconnected relationships among its endogenous
structure. Our model is developed using this concept and translated into city level by using yearly statistical

data officially published by the regional government and national statistics numbers.
IEOM 2014 - 272

11
Causal-Loop Diagram of Endogenous Variables

GHG

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12
Model Conceptualization: System’s Perspective
Diagram System of Jakarta Sustainable Urban Model
Regional Govenrmnet Policies

Sustainable-City
Indicators

Exogenous
Variables

Input
IEOM 2014 - 272

(Endogenous) Process

Output

Problem Owners
13
Model Assumptions

Endogenous

Exogenous

Excluded

Population

Migration

Natural Disaster

Life Expectancy

Exchange Rate

Corruption

Labor Force

Inflation Rate

Crime

Gross Regional Domestic Product

Education Spending Portion

Terrorism

Technology Development

War

Investment

Political Issues

Consumption

Other Regions’ Growth

Fossil Fuel Emission
Education

Employment

IEOM 2014 - 272

14
Model: Modules and Structure
Social Module

Environmental Module

industrial petroleum
usage in mmbtu

CO2 to NOx
MOLECULAR
W EIGHT

RESIDENTIAL
PETROLEUM DEMAND
CH4 EMISSION FACTOR

number of
household
Population
birth

total NOx emission
from petroleum

CH4 to CO2e

SW ITCH GOS RTRW
policy

industrial natural
gas usage in mmbtu

ELECTRICITY
PETROLEUM DEMAND
CH4 EMISSION FACTOR

NOx to CO2e

total CO2e emission
from petroleum

81.76 k m ²

petroleum for
electricity CH4
emission

total CO2 emission
from petroleum

green open space
grow th

total petroleum
usage in barrel
PM10 concentration

petroleum for
electricity saving

Population

petroleum for
residential saving

effect of fossil fuel
emission on
mortality

gross regional
domestic product

0.05 k m ³/yr

public service clean
w ater demand

CLEAN W ATER
DEMAND PER CAPITA

CLEAN W ATER
SHARE

Se conda ry School

se conda ry school
e nrollm e nt

High School

high school e nrollm e nt

Gra dua te School
gra dua te school
e nrollm e nt

STUDY DUR ATIO N SS

STUDY DUR ATIO N P S

STUDY DUR ATIO N HS

P R IMAR Y SC HO O L
ENTR ANC E R ATE P rim a ry School Age
P op

lite ra te pe ople ra te pe r
ye a r
stude nts

P R IMAR Y SC HO O L AGE
P O P P ER C ENTAGE

Population

production capacity

gra dua te school drop
out le ve l

0.10 k m ³/yr

industrial clean
w ater demand

Population

Clean Water

Air Quality

Lite ra te P e ople

e duca tion inde x
stude nts to popula tion
ra tio

SW ITCH
environmental
aw areness

clean w ater saving

SW ITCH
environmental
aw areness

P rim a ry School
prim a ry school
e nrollm e nt

Clean W ater Availability
PAM clean w ater
total clean w ater
demand
PAM clean w ater supply
production

gra dua te school drop
out ra te

high school drop out
le ve l

household clean
w ater demand

GRDP per capita

SERVICE LEVEL

high school drop out
ra te

se conda ry school drop
out ra te

se conda ry school drop
out le ve l

prim a ry school drop out
le ve l

0.39 k m ³/yr

0.26 k m ³/yr

CO2 emission
reduction from low
control air
purification strategy

SW ITCH low control

prim a ry school drop
out ra te

0.24 k m ³/yr

clean w ater effect

CO2 emission
reduction from
medium control air
purification strategy

RATIO INDUSTRIAL
PETROLEUM USAGE
PER UNIT
RATIO
TRANSPORTATION
PETROLEUM USAGE
PER UNIT

petroleum for
transportation
saving

Green Space

SW ITCH medium
control

petroleum usage

RATIO RESIDENTIAL
PETROLEUM USAGE
PER UNIT

groundw ater
extraction rate
groundw ater
extraction

0.08 k m ³/yr

industrial petroleum
usage
industrial
production

government edu
spend

0.49 k m ³/yr

Groundw ater Level
health index

TOTAL LAND AREA

total petroleum
usage in kiloliter
residential
petroleum usagetransportation

662.33 k m ²

TOTAL LAND AREA

CO2 emission
reduction from high
control air
purification strategy

emission reduction

KILOLITER TO BARREL

petroleum usage for
electricity
RATIO PETROLEUM
FOR ELECTRICITY
USAGE PER UNIT

TOTAL LAND AREA

0.08 k m ³

groundw ater
recharge

percentage of
green space

SW ITCH high
control

CO2e emission
concentration

volume CO2e
transportation
petroleum CH4
emission

Populasi

death rate

population density

Ground W ater
Infiltration

0.04 k m ³/yr

0.12

emission
absorbsion from
GOS

net CO2e emission
in ton

atmosphere height

birth rate

Surface W ater Level w ater discharge
w ater evaporatio

developed area
green open space
RTRW grow th

SW ITCH GOS
emission
absorbsion

CO2 EMISSION
FACTOR FOR
PETROLEUM
DEMAND

AVERAGE FAMILY
SIZE

16.11 k m ³

Green Open Space
Green Open Space

NOx EMISSION FACTOR
FOR INDUSTRIAL
NATURAL GAS

CH4 to CO2
equivalent

TRANSPORTATION
PETROLEUM DEMAND
CH4 EMISSION FACTOR

surface w ater
recharge

reclamation rate
EMISSION
ABSORBSION FROM
GOS PER KM2

NOx to CO2
equivalent
total CH4 emission
from petrolium

death

SCF to BTU

CH4 EMISSION FACTOR
FOR INDUSTRIAL
NATURAL GAS

total CO2e emission
from natural gas

CO2 to CH4
MOLECULAR
W EIGHT

residential
petroleum CH4
emission

tranportation
transportation
petroleum usage in
petroleum usage
mmbtu

migration

MIGRATION RATE

PRECIPITATION

industrial petroleum
CH4 emission

petroleum usage for
petroleum usage for
electricity
electricity in mmbtu

industrial
production
industrial natural
gas usage

CO2 emission froam
natural gas

industrial petroleum
usage

residential
residential
petroleum usage
petroleum usage in
mmbtu

RATIO INDUSTRIAL
NATURAL GAS
USAGE PER UNIT

CO2 EMISSION
FACTOR FOR
NATURAL GAS

tranportation
residential
petroleum usage in
petroleum usage inpetroleum usage for
mmbtu
mmbtu
electricity in mmbtu
PETROLEUM DEMAND
NOx EMISSION FACTOR

industrial petroleum
usage in mmbtu

INDUSTRIAL PETROLEUM
DEMAND CH4 EMISSION
FACTOR

KILOLITER TO
MMBTU

Education

a dult lite ra cy inde x

Total Labor Demand
net labor demand
LABOR ACCEPTANCE
RATE

labor acceptance

labor cost of capital

industrial labor
demand

service area labor
demand
agricultural labor
demand

Economic Module

Jobs Opening

Employment Level
net labor demand

Average Labor Cost
labor cost inflation

INFLATION RATE
unemployment

unemployment level

Service Employed
net service hiring
AVERAGE SERVICE
LABOR RATE

Total W orkforce
w orkforce supply
rate

w orkforce decrease
rate

service area labor
demand

SERVICE CAP RATIO

birth rate

Population

EXTRAORDINARY
SPENDING PORTION

extraordinary
expenditure and
lending

URBANIZATION
RATE

expenditure and
net lending

government
healthcare
expenditure

agricultural
investment
government
economics services
expenditure

INITIAL AGRI
PRODUCTION

Government Income
Increase Rate

Income Class

government
revenue

EDU SPEND
PORTION

Inc Class Size
government
revenue

Service Employed

industrial labor
demand

Population

INFLATION RATE

Capital Service

Reg. Gov. Expenditure

agricultural labor
demand

depreciation service

Investment Services

Service Employed

service capital
intensity change
Private Investment
Private Investment
Rate

effect capital
intensity service
productivity

Effectiveness of
Public Investment
Table

INIT EFFECT
CAPITAL INTENSITY
SERV PRODUCTIVITY

Public Investment

INFLATION RATE
Government
Controlled
Investment

INITIAL LABOR
SERVICE
PRODUCTIVITY
INDEX

service production

Public Consumption

Investment Services

Consumption
Increase Rate

relative consumer
price

elasticity of demand
to relative prices

investment on
agriculture
INFLATION RATE
TIME TO PERCEIVED
CHANGES IN
RELATIVE PRICES

per capita demand
Population

effect of relative
prices on
investment shares

indicated
investment shares

demand

Nominal GRDP

gross regional
domestic product

real sectoral
production

real per capita
regional income
elasticity of price to
demand supply
balance

relative sector GDP
ratio

INFLATION RATE

gross regional
income
health cost per
capita

industrial
production
real sectoral
production

Population

Service

gross regional
income

Initial Tech Multiplier
tech capital cost

Producer Price

INITIAL SECTOR Producer Price
PRODUCER PRICE
producer price
change

nominal sectoral
production

real per capita
GRDP

nominal GRDP per
capita

PP Index

real GRDP at factor
cost
nominal GRDP at
factor cost

domestic produced
domestic marketed
goods and services

taxes on goods and
services

nominal GRDP at
factor cost

revenue from non
tax

indirect taxes

supply

Initial sectoral taxes
on goods and
services

nominal sectoral
production

Relative Price

Taxes on Goods
and Services Table
nominal sectoral
production

Fraction of Indirect
Tax on revenue

Capital Service

tech advance
parameter

Technology

industrial production

labor relative
technology
ELASTICITY ON
INDUSTRIAL CAPITAL

COST OF STAY PER DAY

avg relative industrial
labor productivity

INITIAL NON TAX
REVENUE

INITIAL REGIONAL
GOVERNMENT
REVENUE

special funds etc

government
revenue

US-RP EXCHANGE
RATE

Technology

education effect on
industrial labor
productivity

Reg.Gov. Revenue

Respiratory Hospital
Admission

Respiratory Hospital
Admission Cost

industrial employment

COST OF ERV

PM10 concentration
healthy effect on labor
productivity

Emergency Room Visit

emergency room
visit cost

industrial labor
demand

health cost
Restricted Activity Days

TIME FOR CHANGE FOR
DEATH RATE TO AFFECT
PRODUCTIVITY

RAD cost

effect health on
industry productivity
table

Industry

health cost per
capita

Population
LOST DAY W AGE RATE

Average Labor Cost

IEOM 2014 - 272

AVERAGE STAY

relative industrial
employment
INITIAL INDUSTRIAL
EMPLOYMENT

TotalRevenue
taxes on goods and
services

education index
sectoral taxes and
goods and services

CP index

education index
Technological
Percentage over
Investment

Population

budgetary revenue
Revenue from Tax

direct taxes
relative consumer
price

sectoral taxes and
goods and services

GRDP deflator

Investment

property taxes
property tax yoy

other tax revenue

property taxes
table
nominal GRDP at
factor cost
US-RP EXCHANGE
RATE

consumer price
relative price

Sectoral Production

avg relative industrial
capital productivity

Time to collect taxes
GRDP deflator

real sectoral
production

domestic share

other tax revenue
table

initial GDP deflator
relative GDP
deflator

real sectoral
production

effective indirect tax
domestic consumer rate
price

Technology
tech advance
total real
investment

INITIAL INDUSTRIAL
PRODUCTION

US-RP EXCHANGE
RATE
property taxes

Life Expectancy

AVG LIFE OF
INDUSTRIAL CAPITAL

Agricultural Capital

GRDP deflator

death rate

Death Rates per
age
effect of fossil fuel
emission on
mortality

Industrial Capital

depreciation on
industrial capital

real per capita
regional income

demand supply
indicated producer
balance
price
TIME TO ADJUST
PRICE

Death Rates per
age group

INITIAL CAPITAL
INDUSTRI

relative industrial capital labor cost of capital

sector GDP ratio

service production

GRDP deflator

Restricted Activity
Days

Death Rate Table

medium term average
real per capita income
Indicated Life
in USD in PPP
Expectancy
normal life expectancy

Initial Medium Term
Average Per Capita
Income

Investment
Industry

Sectoral Production

Producer Price
Agriculture Production

LOCAL CONDITION LE
normal life expectancy ADJUSTMENT
table
PARAMETER

education index

Population

INITIAL SECTOR
PRODUCER PRICE

supply

nominal inflation

relative price

inital per capita
demand

initial real PC
income

INITIAL
INVESTMENT SHARE

perceived relative
price
INITIAL SECTOR
GDP RATIO

indicated per capita
demand

PPP PARAMETER

real per capita income
in USD in PPP

health effect on
service productivity

W ORKING DAYS IN
YEAR

initial sectoral
demand supply
disequilibrium

feasible share of
per capita demand

investment shares
adjustment

INITIAL RELATIVE
PRICE

elasticity of demand supply
to income

gross regional
domestic product

Industrial Capital
Sector investment
share

INVESTMENT SHARE
ADJUSTMENT TIME

ELASTICITY OF
INVESTMENT TO
RELATIVE PRICES

MALE-FEMALE LE
DIFFERENCE

Agricultural

INIT AGRI CAPITAL

tech effetc on serv
prod
Technology

GRDP deflator
real per capita
GRDP

Population

real per capita gross
national income

INITIAL W ORKER VALUE
ADDED IN 2006

TIME DELAY FOR
INCOME TO AFFECT
LIFE EXPECTANCY

service labor
productivity

Investment
Industry

Real Investment

GRDP deflator

TECHNOLOGY EFFECTS
ON GRAIN
PRODUCTIVITY

relative agri capital

education effect on
service productivity

capital intensity
service

Mean household
income

Mean household
income

PERCENTAGE OF
AGRICULTURAL
INVESTMENT SHARE ON
LABOR

Technology

real budgetary
expenditure
GRDP deflator

AVERAGE FAMILY
SIZE

agricultural labor
demand

value added each
w orker

AVERAGE LIFE
CAPITAL SERVICE

budgetary
expenditure

government edu
spend

Agriculture Production

agriculture
production
increasing rate

government other
expenditure

Grow th Rate

Income Level
Unit Income

Mean pc Income

Labor

agricultural
depreciation

investment on
agriculture

$112,322,964.44

INFLATION RATE

Average Labor Cost

Agricultural Capital

government
revenue

Exchange Rate USRP
government
economics services
expenditure

Capital Service

death rate

INITIAL
POPULATION
W ORKFORCE
PERCENTAGE

AVERAGE W ORKING
DAYS

Health

15
Model Validation
Economic Module
Real GDRP Per Capita
$4.800,00

$4.600,00
$4.400,00
$4.200,00
$4.000,00
$3.800,00
$3.600,00
$3.400,00

2006

2007

2008
JDA

2009

2010

T21

Real GDRP Per Capita

IEOM 2014 - 272

16
Model Validation (2)
Economic Module
Service and Industrial Production
$45.000.000.000,00
$40.000.000.000,00
$35.000.000.000,00

$30.000.000.000,00
$25.000.000.000,00
$20.000.000.000,00
$15.000.000.000,00
$10.000.000.000,00

$5.000.000.000,00
$2006
SERV - JDA

2007
SERV - T21

2008
IND - JDA

2009

2010

IND - T21

Service

Industry

IEOM 2014 - 272

17
Model Validation (3)
Social Module
Population
16000000
14000000
12000000
10000000
8000000
6000000

4000000
2000000

JDA

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

0

T21

Population

IEOM 2014 - 272

18
Model Validation (4)
Environmental Module
Green Space
90 km²

80 km²
70 km²
60 km²
50 km²
40 km²
30 km²
20 km²

10 km²

JDA

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

0 km²

T21

Green Space

IEOM 2014 - 272

19
Outline

This presentation is divided into four parts,
1

Background: Jakarta and Climate Change

2

Literature: Sustainable Urban Development

3

Methodology: Modeling Approaches

4

Discussion: Results and Insights

IEOM 2014 - 272

20
Framework of Analysis: Sustainable City Indicators

Health Quality

Socially Inclusive

Job Openings
Unemployment

Environmental
Friendly

Air Quality
Clean Water Balance
Green Space Proportion

Sustainable
Development

Regional GDP
Per Capita Income

Economically
Competitive

Emission Per GDRP

IEOM 2014 - 272

21
Results and Insights

Emission
Dynamics

• Behavior Over Time (BOT) Graphs of Variables related to
GHG Emission
Industrial Production vs GHG Emission, Number of Sick days vs GHG Emission

• Economic Development
• Sectoral productions and proportion
Model Insights

• Social Indicators
• Population growth, employment, and unemployment

• Environmental Sustainability
• Green space proportion and capabilities.

IEOM 2014 - 272

22
Industrial Production vs GHG Emission
Industrial production is the major emitter of green house gases. The rapid growing of industrial production will
significantly boost emission produced. Hence, the pattern of behavior both variables is similar.
12000000

18000000

16000000
10000000
14000000

12000000

10000000
6000000
80000000

4000000

2000000

60000000

Industrial Sektor Industri
Produksi Production
GHG Gas Rumah Kaca
EmisiEmissions

0

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40000000

20000000

0

23

tons Emision

US Dollars

8000000
GHG Emission vs Number of Sick Days
Air pollution has strong impacts towars human health (respiratory illlness) and even mortality (Ostro, 1994). Our model captured this
relationship and measured in terms of sick days. The increasing number of sick days will induce productivity loss and

possibly slow economic growth.
0,035 da

18000000

16000000
0,03 da
14000000

Number of Sick Days

12000000
0,02 da

10000000

80000000

0,015 da

60000000
0,01 da

40000000
0,005 da

Sick Days
Sick Days
20000000

GHG Gas Rumah Kaca
EmisiEmissions
0 da

IEOM 2014 - 272

0

24

tons Emision

0,025 da
Results and Insights

GHG Emission
Dynamics

• Behavior Over Time (BOT) Graphs of Variables related to
GHG Emission
Industrial Production vs GHG Emission, Number of Sick days vs GHG Emission

• Economic Development
• Sectoral productions and proportion

Model
Insights

• Social Indicators
• Population growth, employment, and unemployment

• Environmental Sustainability
• Green space proportion and capabilities.

IEOM 2014 - 272

25
Economic Development
As mentioned earlier, industrial emission will induce economic productivity. Without government intervention, Jakarta
will face economic slow down. It is also suspected that Jakarta’s economy has reached a saturation point (limit of growth)
90.000.000.000

131 %

“ limit to growth ‖

80.000.000.000

70.000.000.000

USD

60.000.000.000

50.000.000.000

40.000.000.000

30.000.000.000

industrial production
service production
Agriculture production
real GRDP at factor cost

20.000.000.000

10.000.000.000

0
2006

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2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

26
Economic Development
Sectoral Production – Service sector still dominate Jakarta’s economy until 2030

2006
0%

Industrial Production

2030

15%

0%

12%

85%

88%
Service Production

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27
Social Indicators
Stable Growth of Population and Workforce Trends
16.000.000

14.000.000

12.000.000

person

10.000.000

8.000.000

6.000.000

Population

4.000.000

Total Workforce

Employment Level

2.000.000

unemployment

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

IEOM 2014 - 272

28
Social Indicators
Unemployment Proportion

2006
12%

2030
13%

88%

87%

Employment Rate
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Unemployment Rate
29
Social Indicators
Per Capita Income – “Law of deminishing return”
6.000

5.000

USD

4.000

3.000

2.000

1.000

0
2006

2007

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2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

30
Environmental Sustainability
Green Space Proportion – Rapid Grow of Air Purification Capacity

4%

12%

96%

2006

88%
2030
Green Open Space

IEOM 2014 - 272

Urbanized Area
31
Environmental Sustainability
In BAU scenario, the number of emission absorbed by the green space is within range 4 – 8 % per year or 5
percent per year in average.

Emission Absorbed

IEOM 2014 - 272

Total GHG Emission

32
Overall Indicators Result
These result serve as a baseline to support our future works.

Variables

2006

2030

Change

Economic Indicators
Real PDRB

USD

35.159.022.970

79.974.364.824

127%

↑

Service Production

USD

29.847.528.520

70.705.365.349

137%

↑

Social Indicators

Population

person

8.961.680

13.363.175

49%

↑

Employment

person

3.531.799

5.206.481

47%

↑

Unemployment

person

473.176

774.906

64%

↑

1%

↑

36%

↑

60%

↑

61%

↑

232%

↑

232%

↑

Unemployment Rate

%

Real PDRB Per Capita

USD/Person

Number of Sick Days

12 %
3.834

days

13 %
5.212

20

32

Environmental Sustainability Indicators
GHG Emission

ton

Green Open Space (GOS)

km2

GOS Emission Absorption

ton

IEOM 2014 - 272

34.215.285
24,61
1.400.481,27

55.129.906
81,76
4.652.830,71

33
Concluding Remarks
Summary
• This researh aim to build an integrated development model of Jakarta in order to obtain understanding on how GHG
emission affects Jakarta’s urban system structure.
• The developed model consist of three modules: economic; social; environmental, as the basic structure of sustainable
urban development concept.
• The result shows that GHG emission would harm all city’s sectors, especially health equity of people which play a main
role as the backbone of Jakarta’s economic.

Future Direction
• Next step of this research will be focusing on developing policy model and integrate it within this current model. Future
model will serve as a medium for policy testing tools and support the government in decision making.

Acknowledgement
This research is made possible through the support from Regional Government of Jakarta and Institute for Transportation
and Development Policy (ITDP) Indonesia for the insights and data support, and University of Indonesia who provide
financial support through their research grants programme.

Contact
System Engineering, Modeling, and Simulation Laboratory
Industrial Engineering Department, University of Indonesia
irvanu.rahman@yahoo.com | systems.ie.ui.ac.id
IEOM 2014 - 272

34
Readings
Bankes, S. C. (1993). Exploratory Modeling and The Use of Simulation for Policy Analysis. RAND Note
Bassi, A. M. (2008). Modelling US Energy Policy with Threshold 21: Understanding Energy Issues and Informing the US Energy Policy Debate with T21, an
Integrated Dynamic Simulation Software VDM Verlag Dr. Muller Aktiengesellschaft
Chen, M.-C., Ho, T.-P., & Jan, C.-G. (2006). A System Dynamics Model of Sustainable Urban Development: Assessing Air Purification Policies at Taipei City. Asian
Pacific Planning Review Vol. 4, No.1 , 1.

Cole, M. A., & Neumayer, E. (2006). The Impact of Poor Health on Total Factor Productivity. Routledge: Taylor & Francais - Journal of Development Studies , 918938.
Dhakal, S. (2009). Urban energy use and carbon emissions from cities in China and policy implications. Elsevier - Energy Policy , 4208-4219.

Feng, Y. Y., Chen, S. Q., & Zhang, L. X. (2012). System Dynamics modeling for urban energy consumption and CO2 emission: A case study of Beijing, China.
Elsevier - Ecological Modeling , 1.
Firman, T. (2011, Nove). Potential climate-change related vulnerabilities in Jakarta: Challenges and current status. Elsevier - Journal of Habitat International , 1.
Fong, W.-K., Matsumoto, H., & Lun, Y.-F. (2009). Application of System Dynamics model as decision making tool in urban planning process toward stabilizing
carbon dioxide emissions from cities. Elsevier - Building and Environment , 1528-1537.
Guan, D., Gao, W., Su, W., Li, H., & Hokao, K. (2011). Modeling and dynamic assessment of urban economy–resource–environment system with a coupled
system dynamics – geographic information system model. Elsevier - Journal of Ecological Indicators .

Han, J., & Hayashi, Y. (2008). A system dynamics model of CO2 Mitigation in China's Intercity passenger transport. Elsevier - Transportation Resrarch Part D , 298305.
Hidayatno, A., Rahman, I., & Muliadi, R. (2012). A System Dynamics Sustainability Model to Visualize the Interaction Between Economic, Social, and
Environmental Aspects of Jakarta's Urban Development. International Seminar on Science and Technology Innovation , 179-183.
Rotmans, J., Asselt, M. v., & Vellinga, P. (2000). An integrated planning tool for sustainable cities. Elsevier Science Inc. , 3.
Siemens. (2010). Asian Green City Index. Germany: Siemens.

Sterman, J. D. (2000). Business Dynamics: System Thinking and Modeling for A Complex World . Boston: The McGraw Hill Companies, Inc.
Walker, W. E. (1978). A Reviews of Model in Policy Process. Santa Monica, California: The Rand Corporation.
Widyanadiari (2012). Adequacy Analysis of Green Open Space as CO2 Emission Absorber in Urban Area by using Stella Program. Final Year Project. Sepuluh November
Institute of Technology, Surabaya.
World Bank. (2010). Jakarta: Tantangan Perkotaan Seiring Perubahan Iklim. Jakarta: World Bank.

IEOM 2014 - 272

35

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Modeling Approach for Policy Making

  • 1. International Conference on Industrial Engineering & Operation Management Grand Hyatt Bali, Indonesia. January 7-9, 2014 Understanding Dynamics of Green House Gases Impacts on Urban Development: Jakarta Case Study Modeling Approach to Support Policy Making Akhmad Hidayatno, Irvanu Rahman, and Ricki Muliadi System Engineering, Modeling and Simulation Laboratory Industrial Engineering Department, Universitas Indonesia systems.ie.ui.ac.id IEOM 2014 - 272 1
  • 2. Outline This presentation is divided into four parts, 1 Background: Cities and Climate Change 2 Literature: Sustainable Development 3 Methodology: Modeling Approaches 4 Discussion IEOM 2014 - 272 2
  • 3. Cities Megatrend Megatrends imply significant challenges for city decision makers Megatrends Sustainable Urban Development Globalization & Urbanization  Global players / trade volume increase  2030: 60% of population in cities  High density living demands for new patterns in infrastructure Demographic Change  65+ generation will nearly double by 2030 (from 7% to 12%)  Need for adequate infrastructures as well as health- and elder care Climate Change  Cities responsible for ~80% GHG  Need for resource efficiency and environmental care  Cities are competing globally to make their urban areas attractive to live and to invest in Competitiveness Governance Environment Quality of Life  Challenge to balance between competitiveness, environment and quality of life, and to finance infrastructure solutions  Achieve committed CO2 targets ―Making Cities Work – Sustainable Urban Infrastructure‖ — Siemens (2012) IEOM 2014 - 272 3
  • 4. Jakarta’s Current Challenges and Concerns Major Forces: Growing Population, Land Use, and Climate Change 1970 1980 1990 2000 4.546.500 6.503.400 8.259.300 8.385.600 Policies Priorities Regional Government Plan 1 Build Good Urban Governance Spatial Plans (RTRW 2030) IEOM 2014 - 272 2 GHG Mitigation Plan (RAD-GRK 2030) Develop Resilience Eco-City Coastal Defense Strategy (JCDS) 3 Promote PublicPrivate Partnership Electronic Road Pricing (ERP) Low Carbon Transport (MRT, BRT) 4
  • 5. Conflicting Demand between Policy Targets Regional Government Targets (in 2030): • Sustaining 7 - 8 % economic growth per annum • 30 % emission reduction from BAU • 30 % green space expansion • Is it possible to reduce emission and expand the green space without slowing operation and economic growth ? • Can the green space satisfy emission reduction target ? • At what costs ? IEOM 2014 - 272 5
  • 6. Research Objectives ▪ Develop integrated development model of Jakarta to obtain understanding on how GHG emission affects Jakarta’s urban system structure. ▪ The model consist of three modules: economic; social; environmental, and it will run for twenty five years, from 2006 to 2030. ▪ The resulting model will be used as a tool for policy testing to help decision makers in tackling Jakarta’s future challenges and achieving policies targets (Future Research). IEOM 2014 - 272 6
  • 7. Outline This presentation is divided into four parts, 1 Background: Jakarta and Climate Change 2 Literature: Sustainable Urban Development 3 Methodology: Modeling Approaches 4 Discussion IEOM 2014 - 272 7
  • 8. Sustainable Urban Development Sustainable urban development focuses on balancing economic activities, social, and environment. (Chen, Ho, & Jan, 2006). Integration of these three dimensions allows the government and stakeholders to develop long-term and integrated visions for sustainable urban planning. (Rotmans, Asselt, & Vellinga, 2000). Workforce, Household Consumption Human and Social Capital Economic Capital Revenue, Employment Opportunities (+) investment (-) Emission Economic resources, absorb/ release pollution IEOM 2014 - 272 Environmental Capital Energy Infrastructure Health Effect Environmental awareness 8
  • 9. Outline This presentation is divided into four parts, 1 Background: Jakarta and Climate Change 2 Literature: Sustainable Urban Development 3 Methodology: Modeling Approaches 4 Discussion IEOM 2014 - 272 9
  • 10. Modeling Typology for Policy Making Process We use exploratory approach in developing our model to focus on dynamic insight of behaviors, not the numbers produced (predictive modeling). Model such as this one are useful, not because they predict the details of number, but because building and using them improves our insight (Bankes, 1993). Predictive Modeling Exploratory Modeling ― trying to predict the unpredictable ‖ ― the search for insight ‖ ―Exploratory Modeling and the Use of Simulation for Policy Analysis‖ — Bankes(1993) IEOM 2014 - 272 10
  • 11. Model Concept: Threshold 21 Threshold 21 model is a National Sustainability Development Model developed by Millennium Institute (USA) using system dynamics. The model consists of three dimensions of sustainable development, which has interconnected relationships among its endogenous structure. Our model is developed using this concept and translated into city level by using yearly statistical data officially published by the regional government and national statistics numbers. IEOM 2014 - 272 11
  • 12. Causal-Loop Diagram of Endogenous Variables GHG IEOM 2014 - 272 12
  • 13. Model Conceptualization: System’s Perspective Diagram System of Jakarta Sustainable Urban Model Regional Govenrmnet Policies Sustainable-City Indicators Exogenous Variables Input IEOM 2014 - 272 (Endogenous) Process Output Problem Owners 13
  • 14. Model Assumptions Endogenous Exogenous Excluded Population Migration Natural Disaster Life Expectancy Exchange Rate Corruption Labor Force Inflation Rate Crime Gross Regional Domestic Product Education Spending Portion Terrorism Technology Development War Investment Political Issues Consumption Other Regions’ Growth Fossil Fuel Emission Education Employment IEOM 2014 - 272 14
  • 15. Model: Modules and Structure Social Module Environmental Module industrial petroleum usage in mmbtu CO2 to NOx MOLECULAR W EIGHT RESIDENTIAL PETROLEUM DEMAND CH4 EMISSION FACTOR number of household Population birth total NOx emission from petroleum CH4 to CO2e SW ITCH GOS RTRW policy industrial natural gas usage in mmbtu ELECTRICITY PETROLEUM DEMAND CH4 EMISSION FACTOR NOx to CO2e total CO2e emission from petroleum 81.76 k m ² petroleum for electricity CH4 emission total CO2 emission from petroleum green open space grow th total petroleum usage in barrel PM10 concentration petroleum for electricity saving Population petroleum for residential saving effect of fossil fuel emission on mortality gross regional domestic product 0.05 k m ³/yr public service clean w ater demand CLEAN W ATER DEMAND PER CAPITA CLEAN W ATER SHARE Se conda ry School se conda ry school e nrollm e nt High School high school e nrollm e nt Gra dua te School gra dua te school e nrollm e nt STUDY DUR ATIO N SS STUDY DUR ATIO N P S STUDY DUR ATIO N HS P R IMAR Y SC HO O L ENTR ANC E R ATE P rim a ry School Age P op lite ra te pe ople ra te pe r ye a r stude nts P R IMAR Y SC HO O L AGE P O P P ER C ENTAGE Population production capacity gra dua te school drop out le ve l 0.10 k m ³/yr industrial clean w ater demand Population Clean Water Air Quality Lite ra te P e ople e duca tion inde x stude nts to popula tion ra tio SW ITCH environmental aw areness clean w ater saving SW ITCH environmental aw areness P rim a ry School prim a ry school e nrollm e nt Clean W ater Availability PAM clean w ater total clean w ater demand PAM clean w ater supply production gra dua te school drop out ra te high school drop out le ve l household clean w ater demand GRDP per capita SERVICE LEVEL high school drop out ra te se conda ry school drop out ra te se conda ry school drop out le ve l prim a ry school drop out le ve l 0.39 k m ³/yr 0.26 k m ³/yr CO2 emission reduction from low control air purification strategy SW ITCH low control prim a ry school drop out ra te 0.24 k m ³/yr clean w ater effect CO2 emission reduction from medium control air purification strategy RATIO INDUSTRIAL PETROLEUM USAGE PER UNIT RATIO TRANSPORTATION PETROLEUM USAGE PER UNIT petroleum for transportation saving Green Space SW ITCH medium control petroleum usage RATIO RESIDENTIAL PETROLEUM USAGE PER UNIT groundw ater extraction rate groundw ater extraction 0.08 k m ³/yr industrial petroleum usage industrial production government edu spend 0.49 k m ³/yr Groundw ater Level health index TOTAL LAND AREA total petroleum usage in kiloliter residential petroleum usagetransportation 662.33 k m ² TOTAL LAND AREA CO2 emission reduction from high control air purification strategy emission reduction KILOLITER TO BARREL petroleum usage for electricity RATIO PETROLEUM FOR ELECTRICITY USAGE PER UNIT TOTAL LAND AREA 0.08 k m ³ groundw ater recharge percentage of green space SW ITCH high control CO2e emission concentration volume CO2e transportation petroleum CH4 emission Populasi death rate population density Ground W ater Infiltration 0.04 k m ³/yr 0.12 emission absorbsion from GOS net CO2e emission in ton atmosphere height birth rate Surface W ater Level w ater discharge w ater evaporatio developed area green open space RTRW grow th SW ITCH GOS emission absorbsion CO2 EMISSION FACTOR FOR PETROLEUM DEMAND AVERAGE FAMILY SIZE 16.11 k m ³ Green Open Space Green Open Space NOx EMISSION FACTOR FOR INDUSTRIAL NATURAL GAS CH4 to CO2 equivalent TRANSPORTATION PETROLEUM DEMAND CH4 EMISSION FACTOR surface w ater recharge reclamation rate EMISSION ABSORBSION FROM GOS PER KM2 NOx to CO2 equivalent total CH4 emission from petrolium death SCF to BTU CH4 EMISSION FACTOR FOR INDUSTRIAL NATURAL GAS total CO2e emission from natural gas CO2 to CH4 MOLECULAR W EIGHT residential petroleum CH4 emission tranportation transportation petroleum usage in petroleum usage mmbtu migration MIGRATION RATE PRECIPITATION industrial petroleum CH4 emission petroleum usage for petroleum usage for electricity electricity in mmbtu industrial production industrial natural gas usage CO2 emission froam natural gas industrial petroleum usage residential residential petroleum usage petroleum usage in mmbtu RATIO INDUSTRIAL NATURAL GAS USAGE PER UNIT CO2 EMISSION FACTOR FOR NATURAL GAS tranportation residential petroleum usage in petroleum usage inpetroleum usage for mmbtu mmbtu electricity in mmbtu PETROLEUM DEMAND NOx EMISSION FACTOR industrial petroleum usage in mmbtu INDUSTRIAL PETROLEUM DEMAND CH4 EMISSION FACTOR KILOLITER TO MMBTU Education a dult lite ra cy inde x Total Labor Demand net labor demand LABOR ACCEPTANCE RATE labor acceptance labor cost of capital industrial labor demand service area labor demand agricultural labor demand Economic Module Jobs Opening Employment Level net labor demand Average Labor Cost labor cost inflation INFLATION RATE unemployment unemployment level Service Employed net service hiring AVERAGE SERVICE LABOR RATE Total W orkforce w orkforce supply rate w orkforce decrease rate service area labor demand SERVICE CAP RATIO birth rate Population EXTRAORDINARY SPENDING PORTION extraordinary expenditure and lending URBANIZATION RATE expenditure and net lending government healthcare expenditure agricultural investment government economics services expenditure INITIAL AGRI PRODUCTION Government Income Increase Rate Income Class government revenue EDU SPEND PORTION Inc Class Size government revenue Service Employed industrial labor demand Population INFLATION RATE Capital Service Reg. Gov. Expenditure agricultural labor demand depreciation service Investment Services Service Employed service capital intensity change Private Investment Private Investment Rate effect capital intensity service productivity Effectiveness of Public Investment Table INIT EFFECT CAPITAL INTENSITY SERV PRODUCTIVITY Public Investment INFLATION RATE Government Controlled Investment INITIAL LABOR SERVICE PRODUCTIVITY INDEX service production Public Consumption Investment Services Consumption Increase Rate relative consumer price elasticity of demand to relative prices investment on agriculture INFLATION RATE TIME TO PERCEIVED CHANGES IN RELATIVE PRICES per capita demand Population effect of relative prices on investment shares indicated investment shares demand Nominal GRDP gross regional domestic product real sectoral production real per capita regional income elasticity of price to demand supply balance relative sector GDP ratio INFLATION RATE gross regional income health cost per capita industrial production real sectoral production Population Service gross regional income Initial Tech Multiplier tech capital cost Producer Price INITIAL SECTOR Producer Price PRODUCER PRICE producer price change nominal sectoral production real per capita GRDP nominal GRDP per capita PP Index real GRDP at factor cost nominal GRDP at factor cost domestic produced domestic marketed goods and services taxes on goods and services nominal GRDP at factor cost revenue from non tax indirect taxes supply Initial sectoral taxes on goods and services nominal sectoral production Relative Price Taxes on Goods and Services Table nominal sectoral production Fraction of Indirect Tax on revenue Capital Service tech advance parameter Technology industrial production labor relative technology ELASTICITY ON INDUSTRIAL CAPITAL COST OF STAY PER DAY avg relative industrial labor productivity INITIAL NON TAX REVENUE INITIAL REGIONAL GOVERNMENT REVENUE special funds etc government revenue US-RP EXCHANGE RATE Technology education effect on industrial labor productivity Reg.Gov. Revenue Respiratory Hospital Admission Respiratory Hospital Admission Cost industrial employment COST OF ERV PM10 concentration healthy effect on labor productivity Emergency Room Visit emergency room visit cost industrial labor demand health cost Restricted Activity Days TIME FOR CHANGE FOR DEATH RATE TO AFFECT PRODUCTIVITY RAD cost effect health on industry productivity table Industry health cost per capita Population LOST DAY W AGE RATE Average Labor Cost IEOM 2014 - 272 AVERAGE STAY relative industrial employment INITIAL INDUSTRIAL EMPLOYMENT TotalRevenue taxes on goods and services education index sectoral taxes and goods and services CP index education index Technological Percentage over Investment Population budgetary revenue Revenue from Tax direct taxes relative consumer price sectoral taxes and goods and services GRDP deflator Investment property taxes property tax yoy other tax revenue property taxes table nominal GRDP at factor cost US-RP EXCHANGE RATE consumer price relative price Sectoral Production avg relative industrial capital productivity Time to collect taxes GRDP deflator real sectoral production domestic share other tax revenue table initial GDP deflator relative GDP deflator real sectoral production effective indirect tax domestic consumer rate price Technology tech advance total real investment INITIAL INDUSTRIAL PRODUCTION US-RP EXCHANGE RATE property taxes Life Expectancy AVG LIFE OF INDUSTRIAL CAPITAL Agricultural Capital GRDP deflator death rate Death Rates per age effect of fossil fuel emission on mortality Industrial Capital depreciation on industrial capital real per capita regional income demand supply indicated producer balance price TIME TO ADJUST PRICE Death Rates per age group INITIAL CAPITAL INDUSTRI relative industrial capital labor cost of capital sector GDP ratio service production GRDP deflator Restricted Activity Days Death Rate Table medium term average real per capita income Indicated Life in USD in PPP Expectancy normal life expectancy Initial Medium Term Average Per Capita Income Investment Industry Sectoral Production Producer Price Agriculture Production LOCAL CONDITION LE normal life expectancy ADJUSTMENT table PARAMETER education index Population INITIAL SECTOR PRODUCER PRICE supply nominal inflation relative price inital per capita demand initial real PC income INITIAL INVESTMENT SHARE perceived relative price INITIAL SECTOR GDP RATIO indicated per capita demand PPP PARAMETER real per capita income in USD in PPP health effect on service productivity W ORKING DAYS IN YEAR initial sectoral demand supply disequilibrium feasible share of per capita demand investment shares adjustment INITIAL RELATIVE PRICE elasticity of demand supply to income gross regional domestic product Industrial Capital Sector investment share INVESTMENT SHARE ADJUSTMENT TIME ELASTICITY OF INVESTMENT TO RELATIVE PRICES MALE-FEMALE LE DIFFERENCE Agricultural INIT AGRI CAPITAL tech effetc on serv prod Technology GRDP deflator real per capita GRDP Population real per capita gross national income INITIAL W ORKER VALUE ADDED IN 2006 TIME DELAY FOR INCOME TO AFFECT LIFE EXPECTANCY service labor productivity Investment Industry Real Investment GRDP deflator TECHNOLOGY EFFECTS ON GRAIN PRODUCTIVITY relative agri capital education effect on service productivity capital intensity service Mean household income Mean household income PERCENTAGE OF AGRICULTURAL INVESTMENT SHARE ON LABOR Technology real budgetary expenditure GRDP deflator AVERAGE FAMILY SIZE agricultural labor demand value added each w orker AVERAGE LIFE CAPITAL SERVICE budgetary expenditure government edu spend Agriculture Production agriculture production increasing rate government other expenditure Grow th Rate Income Level Unit Income Mean pc Income Labor agricultural depreciation investment on agriculture $112,322,964.44 INFLATION RATE Average Labor Cost Agricultural Capital government revenue Exchange Rate USRP government economics services expenditure Capital Service death rate INITIAL POPULATION W ORKFORCE PERCENTAGE AVERAGE W ORKING DAYS Health 15
  • 16. Model Validation Economic Module Real GDRP Per Capita $4.800,00 $4.600,00 $4.400,00 $4.200,00 $4.000,00 $3.800,00 $3.600,00 $3.400,00 2006 2007 2008 JDA 2009 2010 T21 Real GDRP Per Capita IEOM 2014 - 272 16
  • 17. Model Validation (2) Economic Module Service and Industrial Production $45.000.000.000,00 $40.000.000.000,00 $35.000.000.000,00 $30.000.000.000,00 $25.000.000.000,00 $20.000.000.000,00 $15.000.000.000,00 $10.000.000.000,00 $5.000.000.000,00 $2006 SERV - JDA 2007 SERV - T21 2008 IND - JDA 2009 2010 IND - T21 Service Industry IEOM 2014 - 272 17
  • 18. Model Validation (3) Social Module Population 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 JDA 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 0 T21 Population IEOM 2014 - 272 18
  • 19. Model Validation (4) Environmental Module Green Space 90 km² 80 km² 70 km² 60 km² 50 km² 40 km² 30 km² 20 km² 10 km² JDA 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 0 km² T21 Green Space IEOM 2014 - 272 19
  • 20. Outline This presentation is divided into four parts, 1 Background: Jakarta and Climate Change 2 Literature: Sustainable Urban Development 3 Methodology: Modeling Approaches 4 Discussion: Results and Insights IEOM 2014 - 272 20
  • 21. Framework of Analysis: Sustainable City Indicators Health Quality Socially Inclusive Job Openings Unemployment Environmental Friendly Air Quality Clean Water Balance Green Space Proportion Sustainable Development Regional GDP Per Capita Income Economically Competitive Emission Per GDRP IEOM 2014 - 272 21
  • 22. Results and Insights Emission Dynamics • Behavior Over Time (BOT) Graphs of Variables related to GHG Emission Industrial Production vs GHG Emission, Number of Sick days vs GHG Emission • Economic Development • Sectoral productions and proportion Model Insights • Social Indicators • Population growth, employment, and unemployment • Environmental Sustainability • Green space proportion and capabilities. IEOM 2014 - 272 22
  • 23. Industrial Production vs GHG Emission Industrial production is the major emitter of green house gases. The rapid growing of industrial production will significantly boost emission produced. Hence, the pattern of behavior both variables is similar. 12000000 18000000 16000000 10000000 14000000 12000000 10000000 6000000 80000000 4000000 2000000 60000000 Industrial Sektor Industri Produksi Production GHG Gas Rumah Kaca EmisiEmissions 0 IEOM 2014 - 272 40000000 20000000 0 23 tons Emision US Dollars 8000000
  • 24. GHG Emission vs Number of Sick Days Air pollution has strong impacts towars human health (respiratory illlness) and even mortality (Ostro, 1994). Our model captured this relationship and measured in terms of sick days. The increasing number of sick days will induce productivity loss and possibly slow economic growth. 0,035 da 18000000 16000000 0,03 da 14000000 Number of Sick Days 12000000 0,02 da 10000000 80000000 0,015 da 60000000 0,01 da 40000000 0,005 da Sick Days Sick Days 20000000 GHG Gas Rumah Kaca EmisiEmissions 0 da IEOM 2014 - 272 0 24 tons Emision 0,025 da
  • 25. Results and Insights GHG Emission Dynamics • Behavior Over Time (BOT) Graphs of Variables related to GHG Emission Industrial Production vs GHG Emission, Number of Sick days vs GHG Emission • Economic Development • Sectoral productions and proportion Model Insights • Social Indicators • Population growth, employment, and unemployment • Environmental Sustainability • Green space proportion and capabilities. IEOM 2014 - 272 25
  • 26. Economic Development As mentioned earlier, industrial emission will induce economic productivity. Without government intervention, Jakarta will face economic slow down. It is also suspected that Jakarta’s economy has reached a saturation point (limit of growth) 90.000.000.000 131 % “ limit to growth ‖ 80.000.000.000 70.000.000.000 USD 60.000.000.000 50.000.000.000 40.000.000.000 30.000.000.000 industrial production service production Agriculture production real GRDP at factor cost 20.000.000.000 10.000.000.000 0 2006 IEOM 2014 - 272 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 26
  • 27. Economic Development Sectoral Production – Service sector still dominate Jakarta’s economy until 2030 2006 0% Industrial Production 2030 15% 0% 12% 85% 88% Service Production IEOM 2014 - 272 27
  • 28. Social Indicators Stable Growth of Population and Workforce Trends 16.000.000 14.000.000 12.000.000 person 10.000.000 8.000.000 6.000.000 Population 4.000.000 Total Workforce Employment Level 2.000.000 unemployment 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 IEOM 2014 - 272 28
  • 30. Social Indicators Per Capita Income – “Law of deminishing return” 6.000 5.000 USD 4.000 3.000 2.000 1.000 0 2006 2007 IEOM 2014 - 272 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 30
  • 31. Environmental Sustainability Green Space Proportion – Rapid Grow of Air Purification Capacity 4% 12% 96% 2006 88% 2030 Green Open Space IEOM 2014 - 272 Urbanized Area 31
  • 32. Environmental Sustainability In BAU scenario, the number of emission absorbed by the green space is within range 4 – 8 % per year or 5 percent per year in average. Emission Absorbed IEOM 2014 - 272 Total GHG Emission 32
  • 33. Overall Indicators Result These result serve as a baseline to support our future works. Variables 2006 2030 Change Economic Indicators Real PDRB USD 35.159.022.970 79.974.364.824 127% ↑ Service Production USD 29.847.528.520 70.705.365.349 137% ↑ Social Indicators Population person 8.961.680 13.363.175 49% ↑ Employment person 3.531.799 5.206.481 47% ↑ Unemployment person 473.176 774.906 64% ↑ 1% ↑ 36% ↑ 60% ↑ 61% ↑ 232% ↑ 232% ↑ Unemployment Rate % Real PDRB Per Capita USD/Person Number of Sick Days 12 % 3.834 days 13 % 5.212 20 32 Environmental Sustainability Indicators GHG Emission ton Green Open Space (GOS) km2 GOS Emission Absorption ton IEOM 2014 - 272 34.215.285 24,61 1.400.481,27 55.129.906 81,76 4.652.830,71 33
  • 34. Concluding Remarks Summary • This researh aim to build an integrated development model of Jakarta in order to obtain understanding on how GHG emission affects Jakarta’s urban system structure. • The developed model consist of three modules: economic; social; environmental, as the basic structure of sustainable urban development concept. • The result shows that GHG emission would harm all city’s sectors, especially health equity of people which play a main role as the backbone of Jakarta’s economic. Future Direction • Next step of this research will be focusing on developing policy model and integrate it within this current model. Future model will serve as a medium for policy testing tools and support the government in decision making. Acknowledgement This research is made possible through the support from Regional Government of Jakarta and Institute for Transportation and Development Policy (ITDP) Indonesia for the insights and data support, and University of Indonesia who provide financial support through their research grants programme. Contact System Engineering, Modeling, and Simulation Laboratory Industrial Engineering Department, University of Indonesia irvanu.rahman@yahoo.com | systems.ie.ui.ac.id IEOM 2014 - 272 34
  • 35. Readings Bankes, S. C. (1993). Exploratory Modeling and The Use of Simulation for Policy Analysis. RAND Note Bassi, A. M. (2008). Modelling US Energy Policy with Threshold 21: Understanding Energy Issues and Informing the US Energy Policy Debate with T21, an Integrated Dynamic Simulation Software VDM Verlag Dr. Muller Aktiengesellschaft Chen, M.-C., Ho, T.-P., & Jan, C.-G. (2006). A System Dynamics Model of Sustainable Urban Development: Assessing Air Purification Policies at Taipei City. Asian Pacific Planning Review Vol. 4, No.1 , 1. Cole, M. A., & Neumayer, E. (2006). The Impact of Poor Health on Total Factor Productivity. Routledge: Taylor & Francais - Journal of Development Studies , 918938. Dhakal, S. (2009). Urban energy use and carbon emissions from cities in China and policy implications. Elsevier - Energy Policy , 4208-4219. Feng, Y. Y., Chen, S. Q., & Zhang, L. X. (2012). System Dynamics modeling for urban energy consumption and CO2 emission: A case study of Beijing, China. Elsevier - Ecological Modeling , 1. Firman, T. (2011, Nove). Potential climate-change related vulnerabilities in Jakarta: Challenges and current status. Elsevier - Journal of Habitat International , 1. Fong, W.-K., Matsumoto, H., & Lun, Y.-F. (2009). Application of System Dynamics model as decision making tool in urban planning process toward stabilizing carbon dioxide emissions from cities. Elsevier - Building and Environment , 1528-1537. Guan, D., Gao, W., Su, W., Li, H., & Hokao, K. (2011). Modeling and dynamic assessment of urban economy–resource–environment system with a coupled system dynamics – geographic information system model. Elsevier - Journal of Ecological Indicators . Han, J., & Hayashi, Y. (2008). A system dynamics model of CO2 Mitigation in China's Intercity passenger transport. Elsevier - Transportation Resrarch Part D , 298305. Hidayatno, A., Rahman, I., & Muliadi, R. (2012). A System Dynamics Sustainability Model to Visualize the Interaction Between Economic, Social, and Environmental Aspects of Jakarta's Urban Development. International Seminar on Science and Technology Innovation , 179-183. Rotmans, J., Asselt, M. v., & Vellinga, P. (2000). An integrated planning tool for sustainable cities. Elsevier Science Inc. , 3. Siemens. (2010). Asian Green City Index. Germany: Siemens. Sterman, J. D. (2000). Business Dynamics: System Thinking and Modeling for A Complex World . Boston: The McGraw Hill Companies, Inc. Walker, W. E. (1978). A Reviews of Model in Policy Process. Santa Monica, California: The Rand Corporation. Widyanadiari (2012). Adequacy Analysis of Green Open Space as CO2 Emission Absorber in Urban Area by using Stella Program. Final Year Project. Sepuluh November Institute of Technology, Surabaya. World Bank. (2010). Jakarta: Tantangan Perkotaan Seiring Perubahan Iklim. Jakarta: World Bank. IEOM 2014 - 272 35