The Effect of Energy Consumption and Renewable Energy on Economic Growth in Indonesia

Sodik Dwi Purnomo, Nur Wani, Suharno Suharno, Arintoko Arintoko, Herman Sambodo and Lilis Siti Badriah
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Sodik Dwi Purnomo: Faculty of Economics and Business, Wijayakusuma University Purwokerto, Indonesia,
Nur Wani: Faculty of Economics and Business, Jenderal Soedirman University, Indonesia.
Arintoko Arintoko: Faculty of Economics and Business, Jenderal Soedirman University, Indonesia.
Herman Sambodo: Faculty of Economics and Business, Jenderal Soedirman University, Indonesia.
Lilis Siti Badriah: Faculty of Economics and Business, Jenderal Soedirman University, Indonesia.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 1, 22-30

Abstract: The economic growth in Indonesia showed a stable trend while the growth in energy consumption showed a declining trend. However, previous studies had revealed the existence of positive and significant relationship between energy consumption and economic growth. This study aims to analyse the effect of oil, gas, and biomass fuel consumption, road infrastructure, life expectancy, and average length of education on economic growth in Indonesia during the year of 1990-2019. This study used quantitative approach with linear regression as data analysis method. The data used are time series data from the period of 1990-2019. The result of this study showed that oil, gas, and biomass fuel consumption, as well as average length of education have a positive and significant effect, while road infrastructure and life expectancy have no effect on economic growth in Indonesia for the year of 1990-2019. This study recommends: 1) energy reserves should be improved by increasing the number of energy sources and developing more infrastructure in order to support and boost the supply of energy, 2) quality of educations should be upgraded by giving out scholarships as well as improving the educators and physical infrastructure.

Keywords: Economic growth; renewable energy; infrastructure; human capital (search for similar items in EconPapers)
JEL-codes: O13 O15 O18 O47 Q42 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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