Dynamic Model for the Consumption of Electrical Energy in Indonesia

Sudati Nur Safiah, Retno Sugiharti (), Rian Destiningsih and Putra Arif Budiman
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Sudati Nur Safiah: Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia
Rian Destiningsih: Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia
Putra Arif Budiman: Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 5, 356-362

Abstract: This study aims to find the existence of a long-term relationship between subsidized energy, population, inflation, economic growth, and consumption of electrical energy in Indonesia for the period of 1987-2018. In order to analyse the existence of long run relationship, this research was conducted using the Autoregressive Distributed Lag (ARDL) model. This research focused on the energy subsidy, considering that Indonesia is one of the four countries that still apply subsidized energy. The findings suggest that that there is a long-term cointegration between electricity consumption with regressor variables. The result of Estimation Result of ARDL also confirms the existence of long-term relationships on variables in the model.

Keywords: energy consumption; electricity; economic growth; Indonesia (search for similar items in EconPapers)
JEL-codes: C38 L94 Q01 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-05-39

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