Analyzing the Factors Affecting the Electricity Cost in Indonesia: A Multiple Linear Regression Approach

Yanyu Tu ()
Additional contact information
Yanyu Tu: ADCOTE SCHOOL Shanghai

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 759-767 from Springer

Abstract: Abstract With profound changes in the global economic landscape and the accelerated energy transition, electricity cost management has become a critical issue affecting the sustainable development of national industrial competitiveness and livelihood security. As ASEAN’s largest economy and a G20 member, Indonesia’s energy consumption structure exhibits typical developing country characteristics: rapid growth in electricity demand driven by economic growth and urbanization, and relatively underdeveloped energy infrastructure and a need to improve energy efficiency. This study, based on 312 Indonesian electricity consumption data obtained from Kaggle, empirically analyzed the key factors influencing electricity costs using multiple linear regression models. The results demonstrate that the constructed model has strong explanatory power, explaining 79.8% of the variation in electricity costs (R2=0.798). The study found that site area (B=0.606), water consumption (B=0.085), and utilization rate (B=9.254) have a significant positive impact on electricity costs, while factors such as building type and recycling rate have no significant impact. The research results provide empirical evidence for the Indonesian government and enterprises to formulate differentiated electricity price policies and optimize energy management. It is recommended to effectively control electricity costs by controlling site size, improving water use efficiency and managing facility utilization.

Keywords: Electricity Cost; Regression Analysis; Influencing Factors; Indonesia; Energy Management (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6239-642-5_77

Ordering information: This item can be ordered from
http://www.springer.com/9789462396425

DOI: 10.2991/978-94-6239-642-5_77

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().