An Analysis of Energy Intensity in Indonesian Manufacturing

Tony Irawan (), Djoni Hartono and Noer Achsani

No 201007, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University

Abstract: Many countries utilize their resources at optimal capacity in fostering countries’ economic growth without any concern on environmental impact. Even though the importance of environmental issue as one of the important aspects in sustainable development is fully understood, the economic growth still remained as the priority target. In Indonesia, industry is one of the important sectors both in term of its contribution to national output and national energy consumption. Based on Indonesian Statistic Bureau, industry is always at the top list of contributor of national energy consumption since 2000. This paper employs the decomposition analysis to calculate what factors contribute to the change in energy intensity. We also conduct a panel data analysis to investigate the determinants of energy intensity using firm level data. The result suggests that, even though the industrial sector’s energy intensity is higher than national level, it varied across sub sectors within the industry. Meanwhile, the econometric analysis suggests that wage, age, capital intensity and share of capital owned by private sector have positive impact on energy intensity, whereas size of firms, labor productivity and technology intensity has negative impact on energy intensity.

Keywords: energy intensity; industry; firm; decomposition; panel data (search for similar items in EconPapers)
JEL-codes: Q40 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2010-08, Revised 2010-08
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://ceds.feb.unpad.ac.id/wopeds/201007.pdf First version, 2010 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ceds.feb.unpad.ac.id/wopeds/201007.pdf [301 Moved Permanently]--> https://ceds.feb.unpad.ac.id/wopeds/201007.pdf)

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:unp:wpaper:201007

Access Statistics for this paper

More papers in Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University Contact information at EDIRC.
Bibliographic data for series maintained by Arief Anshory Yusuf ().