Analysis of Energy Intensity Decomposition in the Textile Industrial Sub Sector of Indonesia

Sally Salamah, Wan Abbas Zakaria, Toto Gunarto, Lies Maria Hamzah and Muhammad Said
Additional contact information
Sally Salamah: Faculty of Economics and Business, University of Lampung, Indonesia,
Wan Abbas Zakaria: Faculty of Economics and Business, University of Lampung, Indonesia,
Toto Gunarto: Faculty of Economics and Business, University of Lampung, Indonesia,
Lies Maria Hamzah: Faculty of Economics and Business, University of Lampung, Indonesia,
Muhammad Said: Faculty of Economics and Business UIN Syarif Hidayatullah Jakarta, Indonesia

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 3, 1-10

Abstract: The purpose of this study was to analyze the energy intensity decomposition in the textile industry subsector of Indonesia at level 2 and 3 KBLI. This is because of its usefulness in measuring energy efficiency. However, energy decomposition has not been able to accurately reflect the efficiency that occurs in the industrial sector. Since the results gotten from the calculation of energy intensity contains components of structural factors, there is need for the analysis of the changes in the composition of output caused by activities or a combination of output and energy intensity components. Energy intensity approach and the Time Series technique through the use of log mean divisia index I method was used in this study to determine the effect of structural and intensity factors on changes in aggregate energy intensity in the textile industry sector in Indonesia. The results showed that the energy intensity of the textile industry between 2006 and 2014 experienced a downward trend, but the structural factors were more dominant than the intensity factor. Therefore, there is need for structural factors in energy intensity decomposition of the textile industry sector so as to be able to save energy.

Keywords: Energy Intensity, Structural Effect, Intensity Effect; Decomposition, Textile Industry, Indonesia (search for similar items in EconPapers)
JEL-codes: L67 Q4 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/7457/4308 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/7457/4308 (text/html)

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:eco:journ2:2019-03-1

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().