Culprits of Increased Non-Renewable Energy Consumption in Indonesia: Role of Inflation, Poverty and Debts

S. K. Purwanto, Obsatar Sinaga and Morni Hayati Jaafar Sidik
Additional contact information
S. K. Purwanto: Widyatama University, Indonesia,
Obsatar Sinaga: Padjadjaran University, Indonesia,
Morni Hayati Jaafar Sidik: Universiti Kuala Lumpur, Malatysia.

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 6, 560-566

Abstract: Non-renewable resources, which include natural resources, are now being much rare and are being depleted in the recent decades as these are not being replenished naturally. In Indonesia, there is a need to see and manage the factors that utilize the maximum amount of non-renewable energy in the state. Thus, our study investigates the factors that characterize for the increased use of non-renewable resources that include inflation, poverty, debts, etc. This research has gathered data over 28 years of time to get a time-series analysis. The independent variables are inflation, poverty, and debts of the nation. The dependent variable is non-renewable energy consumption and the control variables are population growth and GDP of Indonesia. For this purpose, we have used Autoregressive distributed time lag (ARDL) model and Augmented Dickey Fuller (ADF) technique along with unit root tests. Further, the co-integrating among the variables is also tested for observing the relationship of variables in the long-run. The results show that all the inflation, poverty, and debts have significantly being the culprits for increased non-renewable energy consumption in both short-run and long-run analysis. However, population growth has been insignificant in the long run. The research gives useful directions for the policy-makers and people as how to reduce the increased rate of debts, inflation and poverty.

Keywords: non-renewable energy consumption; inflation; poverty; debts; ARDL; Indonesia. (search for similar items in EconPapers)
JEL-codes: C32 E31 G51 I32 Q43 (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)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/11889/6173 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/11889/6173 (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:journ2:2021-06-64

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 ().