Strategies to Control Industrial Emissions: An Analytical Network Process Approach in East Java, Indonesia

Abstract

This study identified the main agents, problems, solutions, and strategies for lowering industrial carbon dioxide (CO2) emissions in the cement industry in East Java, Indonesia, by applying an analytical network process. Respondents included government officials, industrial representatives, and environmental experts. This study revealed that (1) regulators are the critical agents controlling emissions; (2) the three major problems faced when aiming to reduce industrial emissions are limited environmental knowledge, inadequate infrastructure, and unsound regulations; (3) the main solutions are education, socialization, and infrastructure improvement; and (4) the institutional approach is preferable to command-and-control and economic incentives. This suggests that policymakers should collaborate closely with regulators, firms, and communities to more effectively control emissions and encourage environmentally friendly industrial practices. Economic incentives are not preferable strategies, most likely because of insufficient environmental knowledge, market distortion due to subsidies, and low viability. However, the institutional approach incurs higher costs due to political, administrative, and legal processes. Parties may agree on achieving socioeconomic demands but not environmental output. The institutional approach also requires extra investment in education and socialization as well as government support for infrastructure development and a better regulatory framework.