Eliminating Government Vehicle Assets in Support of The Green Economy: a Study of International Policy and Practice
Abstract
Government vehicle disposal in Indonesia is primarily conducted through auction mechanisms aimed at optimizing non-tax state revenue (PNBP), ensuring transparency, and improving administrative efficiency. However, from a green economy perspective, this approach may unintentionally prolong the operational life of aging vehicles with high carbon emissions, thereby contributing to environmental degradation and undermining national sustainability goals. This study aims to analyze the implications of government vehicle disposal policies on green economy objectives, compare Indonesia’s practices with those implemented in the United States, Germany, and Japan, and formulate policy recommendations for a more sustainable disposal system. The research employs a descriptive qualitative method using literature review, policy analysis, and comparative analysis of regulations and disposal practices across selected countries. The findings indicate that Indonesia’s disposal policy remains largely focused on fiscal and administrative considerations, whereas developed countries have integrated circular economy principles through vehicle recycling, environmental impact assessments, emission monitoring, and low-emission disposal systems. The study recommends a hybrid disposal model that combines auctions for environmentally compliant vehicles with mandatory recycling for high-emission vehicles, alongside the integration of environmental criteria into disposal regulations and the allocation of auction revenues to support clean energy transition programs. Such measures are expected to balance fiscal objectives with environmental sustainability and climate commitments.
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Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). Sage Publications. ISBN: 9781506330204.Alhola, K., Ryding, S. O., Salmenperä, H., & Busch, N. J. (2019).
Howlett, M., & Mukherjee, I. (2018). Routledge handbook of policy design. Routledge.
Scientific Journal:
Ahn, Y. H., Pearce, A. R., Wang, Y., & Wang, G. (2021). Drivers and barriers of sustainable asset management in public organizations. Sustainability, 13(4), 2124. https://doi.org/10.3390/su13042124
Exploiting the potential of public procurement: Opportunities for circular economy. Journal of Industrial Ecology, 23(1), 96–109. https://doi.org/10.1111/jiec.12770
Barbier, E. B. (2023). The evolution of the green economy paradigm. Sustainability Science, 18(4), 1801–1814. https://doi.org/10.1007/s11625-023-01328-8
Benson, D., & Jordan, A. (2012). Policy transfer research: Still evolving, not yet through? Political Studies Review, 10(3), 333–338. https://doi.org/10.1111/j.1478-9302.2012.00273.x
Bressanelli, G., Saccani, N., Pigosso, D. C. A., & Perona, M. (2020). Circular economy in the automotive industry: Towards a framework for end-of-life vehicle management. Journal of Cleaner Production, 275, 122761. https://doi.org/10.1016/j.jclepro.2020.122761
Burchart-Korol, D., Jursova, S., Folęga, P., Korol, J., Pustejovska, P., & Blaut, A. (2018). Environmental life cycle assessment of electric vehicles in Poland and the Czech Republic. Journal of Cleaner Production, 202, 476–487. https://doi.org/10.1016/j.jclepro.2018.08.145
Cheng, W., Appolloni, A., D’Amato, A., & Zhu, Q. (2018). Green public procurement, missing concepts and future trends: A critical review. Journal of Cleaner Production, 176, 770–784. https://doi.org/10.1016/j.jclepro.2017.12.027
Creutzig, F., Jochem, P., Edelenbosch, O. Y., Mattauch, L., van Vuuren, D. P., McCollum, D., & Minx, J. (2015). Transport: A roadblock to climate change mitigation? Science, 350(6263), 911–912. https://doi.org/10.1126/science.aac8033
D'Amato, D., & Korhonen, J. (2021). Integrating the green economy, circular economy and bioeconomy in a strategic sustainability framework. Sustainability, 13(7), Article 3944. https://doi.org/10.3390/su13073944
Dolowitz, D. P. (2003). A policy-maker's guide to policy transfer. The Political Quarterly, 74(1), 101–108. https://doi.org/10.1111/1467-923X.t01-1-00517
El-Akruti, K., & Dwight, R. (2019). Asset management strategy and organisational sustainability: A conceptual framework. International Journal of Sustainable Engineering, 12(3), 170–182. https://doi.org/10.1080/19397038.2018.1517474
Forti, V., Baldé, C. P., Kuehr, R., & Bel, G. (2023). Circular economy approaches for end-of-life products and material recovery systems. Resources, Conservation and Recycling, 194, Article 106995. https://doi.org/10.1016/j.resconrec.2023.106995
Grandia, J., & Voncken, D. (2019). Sustainable public procurement: The impact of ability, motivation, and opportunity on the implementation of different sustainable procurement strategies. Journal of Public Procurement, 19(3), 173–196. https://doi.org/10.1108/JOPP-11-2018-0030
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy: A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
Hao, H., Liu, Z., Zhao, F., Li, W., & Hang, W. (2021). Scenario analysis of energy consumption and greenhouse gas emissions from transportation sector. Energy Policy, 149, 112019. https://doi.org/10.1016/j.enpol.2020.112019
James, O., & Lodge, M. (2003). The limitations of ‘policy transfer’ and ‘lesson drawing’ for public policy research. Political Studies Review, 1(2), 179–193. https://doi.org/10.1111/1478-9299.t01-1-00003
Karagoz, S., Aydin, N., & Simic, V. (2020). End-of-life vehicle management: A comprehensive review. Journal of Material Cycles and Waste Management, 22(2), 416–442. https://doi.org/10.1007/s10163-019-00945-y
Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005
Mazzucato, M., & Ryan-Collins, J. (2022). Putting value creation at the center of public asset management. Review of Evolutionary Political Economy, 3(2), 217–238. https://doi.org/10.1007/s43253-022-00069-1
Mealy, P., & Teytelboym, A. (2022). Economic complexity and the green economy. Research Policy, 51(8), Article 103948. https://doi.org/10.1016/j.respol.2020.103948
Nugroho, A., Prasetyo, B., & Hidayat, R. (2024). Sustainable management of government-owned vehicles and environmental implications of public asset disposal. Journal of Public Asset Management, 12(1), 45–61.
Rainville, A. (2021). Standards in green public procurement – A framework to enhance sustainable procurement practices. Journal of Cleaner Production, 279, 123679. https://doi.org/10.1016/j.jclepro.2020.123679
Reuter, M. A., van Schaik, A., Gutzmer, J., Bartie, N., & Abadías-Llamas, A. (2019). Challenges of the circular economy: A material, metallurgical, and product design perspective. Minerals Engineering, 76, 3–8. https://doi.org/10.1016/j.mineng.2014.12.003
Saidani, M., Yannou, B., Leroy, Y., Cluzel, F., & Kendall, A. (2019). A taxonomy of circular economy indicators. Journal of Cleaner Production, 207, 542–559. https://doi.org/10.1016/j.jclepro.2018.10.014
Sen, B., Ercan, T., & Tatari, O. (2023). Environmental impacts of aging vehicle fleets and implications for sustainable transportation policies. Transportation Research Part D: Transport and Environment, 118, Article 103694. https://doi.org/10.1016/j.trd.2023.103694.
Sitinjak, C., Simic, V., Tirkolaee, E. B., Bacanin, N., Simanullang, W. F., & Fajar, R. (2025). Uncovering pathways towards sustainable transportation: Investigating factors influencing societal acceptance of end-of-life vehicle management in Indonesia. Waste Management & Research, 43(5). https://doi.org/10.1177/0734242X241273761
Stojkoski, V., Koch, P., & Hidalgo, C. A. (2023). Multidimensional economic complexity and inclusive green growth. Communications Earth & Environment, 4, Article 130. https://doi.org/10.1038/s43247-023-00770-0
Stone, D. (2004). Transfer agents and global networks in the transnationalization of policy. Journal of European Public Policy, 11(3), 545–566. https://doi.org/10.1080/13501760410001694291
Testa, F., Iraldo, F., Frey, M., & Daddi, T. (2016). What factors influence the uptake of green public procurement practices? New evidence from an Italian survey. Ecological Economics, 82, 88–96. https://doi.org/10.1016/j.ecolecon.2012.07.011
Wang, S., Li, Y., Zhao, D., & Chen, H. (2022). Vehicle retirement policies and carbon emission reduction: Evidence from transportation sector modeling. Transportation Research Part D: Transport and Environment, 103, 103164. https://doi.org/10.1016/j.trd.2022.103164
Internet Sources:
International Energy Agency. (2023). Transport sector emissions and energy outlook 2023. International Energy Agency. https://www.iea.org
Published
2026-05-25
How to Cite
SUCIPTO, Rachman et al.
Eliminating Government Vehicle Assets in Support of The Green Economy: a Study of International Policy and Practice.
Public Policy and Management Inquiry, [S.l.], v. 10, n. 1, p. 44 - 61, may 2026.
ISSN 2714-626X.
Available at: <https://jos.unsoed.ac.id/index.php/ppmi/article/view/21339>. Date accessed: 25 june 2026.
doi: https://doi.org/10.20884/ppmi.v10i1.21339.
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
