Energy efficiency, rebound effect and environmental tax reform in Indonesia

Arif Rahman Sobri, Djoni Hartono and Nina Indriati Lestari

International Journal of Energy Technology and Policy, 2020, vol. 16, issue 2, 136-159

Abstract: Energy intensity level in Indonesia is decreasing, which is a sign of energy efficiency improvement. However, with the presence of rebound effect, energy consumption becomes challenging to reduce. With a general equilibrium (CGE) model application, this study analyses a rebound effect existence in Indonesia and whether the energy subsidy and income tax reduction could lessen the rebound effect. While it confirms the rebound effect presence, energy subsidy reduction policy could play an important part in determining its level. The policy is believed to reduce rebound effect on fuel oil while elevates it when it comes to electricity and gas. Furthermore, it leads to a positive effect on the economy. However, the other policy such as income tax reduction, indicates contrarily.

Keywords: energy efficiency; rebound effect; energy subsidy; income tax reduction; environmental tax reform; ETR; Indonesia. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=105506 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijetpo:v:16:y:2020:i:2:p:136-159

Access Statistics for this article

More articles in International Journal of Energy Technology and Policy from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().