Analyzing the Energy Intensity Trend in Indonesia, using Econometric and Decomposition Analysis

Muhammad Iqbal Nugraha ()
Additional contact information
Muhammad Iqbal Nugraha: Master of Applied Economics, Padjadjaran University

No 201901, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University

Abstract: The need for energy efficiency comes with energy security. High energy consumption rates with the scarcity of fossil-based energy promote the energy-saving awareness. Meanwhile, one of the most used indicators for energy efficiency is energy intensity, a ratio of energy consumed divided by output produced. In this regard, the decrease in energy intensity reflects an improvement in energy efficiency. This study discusses the trend and the impact of several factors determining energy intensity in Indonesia, using both econometric and decomposition analyses. Using the fully modified ordinary least square (FMOLS) for the econometric, this study found that economic growth and energy price negatively impacted energy intensity while industrialization and energy mix affected energy intensity positively. On the other hand, the decomposition results illustrated that efficiency mattered more in influencing energy intensity rather than the structural effects. Several policy implications, including energy conversion promotion, were then derived from the findings of this study.

Keywords: energy intensity; energy efficiency; fully modified ordinary least square (search for similar items in EconPapers)
JEL-codes: O1 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2019-11, Revised 2019-11
New Economics Papers: this item is included in nep-ene and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201901.pdf First version, 2019 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ceds.feb.unpad.ac.id/wopeds/201901.pdf [301 Moved Permanently]--> https://ceds.feb.unpad.ac.id/wopeds/201901.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:unp:wpaper:201901

Access Statistics for this paper

More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Bibliographic data for series maintained by Arief Anshory Yusuf ().