Applied Economics Journal


Applied Economics Journal

ISSN 0858-9291

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Broadband and Resource Allocation for Biofuel Crops

Broadband and biofuels are topical issues in Thailand. Two of the articles in this number address important issues associated with them. The first, An Analysis of Demand-based Factors for Broadband Migration, by Manit Satitsamitpong, Tokio Otsuka, and Hitoshi Mitomo of Waseda University and Toshiya Jitsuzumi of Kyushu University, Japan, analyzed how economic, technological and demographic factors influence the decision to migrate to broadband services. The result from a mixed logit model suggests that price, as proxy for economic factor, is an important decision influence, especially in developing countries. In Thai case, lowering the price of broadband services to 50% would increase the probability of the users migrating to broadband by more than 5%. Some demographic factors such as income and location have lesser influence on peoples decision. Speed, surprisingly, was not statistically significant. They found that the rate of migration to broadband in Thailand was way behind Japans (1.43% vs. 22.1% in 2007 and widening), mainly because Thailands policy had been supply driven, i.e. build them and they will come. It did not work well so the authors propose, from their findings, to use a demand-driven policy, which is to bring the price of usage down. One implication for policy is to encourage more competition.

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