The Energy Demand Elasticity in Relation to Gross Domestic Product in Indonesia: Sectoral Approach

Suharno Suharno and Nurul Anwar
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Nurul Anwar: Department of Economics and Development Studies, Faculty of Economics and Business, Jenderal Soedirman University, Indonesia

International Journal of Energy Economics and Policy, 2022, vol. 13, issue 4, 634-640

Abstract: This paper aims at estimating the energy demand elasticity in relation to gross domestic product in Indonesia based on data from 1995 to 2018. The sectors examined are industry, trading, transportation, and housing sectors. The method of analysis is the Autoregressive Distributed Lag (ARDL). An interesting estimation result here is that the elasticity of the industry sector is negative both short and long term. The other three sectors show positive elasticity. This paper contributes to the discussion of the energy demand ARDL model to be used as a reference in developing countries.

Keywords: The elasticity of energy use; sectoral; economic growth; autoregressive distributed lag model (search for similar items in EconPapers)
JEL-codes: C23 O11 O13 (search for similar items in EconPapers)
Date: 2022
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