Evolution of Embodied Renewable Energy Use in Indonesia

Noor Syaifudin and Yanrui Wu
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Noor Syaifudin: Center for Climate Finance and Multilateral Policy, Fiscal Policy Agency, Ministry of Finance of Republic of Indonesia
Yanrui Wu: Economics Department, Business School, The University of Western Australia, http://www.web.uwa.edu.au/person/yanrui.wu

No 21-18, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: This paper extends the literature on energy sustainability by presenting empirical evidence of the evolution of embodied renewable energy in Indonesia. By employing the environmental input-output analysis, the paper reveals that there was an increasing trend in direct and indirect embodied renewable energy consumption among Indonesia’s 16 industrial sectors. However, the analysis also finds that indirect embodied renewable energy consumption was greater than direct embodied renewable energy use. The findings also show that renewable energy was mainly used to support the manufacturing capacity of various industries. It is surmised that appropriate national regulations and standards should be enacted to promote sustainable energy in Indonesia. The observations in this paper also show that relevant government policies are expected to attract more investment into the Chemical and Other Services as well as Other Industry and Mining sectors as these are the core renewable energy transfer and terminal sectors respectively for the period of observations.

Keywords: Indonesia; sustainable energy; embodied energy; renewable energy; environmental input-output analysis (search for similar items in EconPapers)
Pages: 28
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:uwa:wpaper:21-18

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