Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis

Ujang Hendra Gunawan, Nuraeni Kadir, Abdul Rahman Kadir, Muhammad Sobarsyah and Sabbar Dahham Sabbar
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Ujang Hendra Gunawan: Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia
Nuraeni Kadir: Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia
Abdul Rahman Kadir: Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia
Muhammad Sobarsyah: Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia
Sabbar Dahham Sabbar: Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 6, 254-269

Abstract: Existing studies have primarily focused on factors influencing energy poverty (EP), with limited attention given to the specific role of renewable energy advancements (REA). This study addresses this gap by employing a moment quantile regression model to evaluate the energy poverty index system, exploring the impact of REA on EP. Data is sourced from a 30-province panel in Indonesia from 2003 to 2019. The study reveals that REA contributes to alleviating EP, particularly in regions with low climate vulnerability. Both linear and non-linear models indicate that the climate vulnerability index (CVI) moderates this relationship, with REA reducing EP in low CVI regions, but showing the opposite effect under high CVI conditions. This effect is geographically concentrated in western Indonesia, with no significant impact in central and eastern regions. These findings provide valuable insights for strategies aimed at reducing energy poverty and promoting sustainable energy growth.

Keywords: Renewable Energy; Energy Poverty; Climate Vulnerability; Indonesia (search for similar items in EconPapers)
JEL-codes: P18 P22 P23 (search for similar items in EconPapers)
Date: 2024
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