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The Development of Green Energy Policy Planning Model to Improve Economic Growth in Indonesia

Author

Listed:
  • Daryono Daryono

    (Faculty of Business and Economics, University of Diponegoro, Indonesia)

  • Sugeng Wahyudi

    (Faculty of Business and Economics, University of Diponegoro, Indonesia)

  • Suharnomo Suharnomo

    (Faculty of Business and Economics, University of Diponegoro, Indonesia)

Abstract

Energy is an element that is vital in everyday life. Its use continues to increase along with the increasing demand for energy which is influenced by population growth and economic growth. Until now, energy use is still dominated by the depletion of fossil energy, while its management is still not optimal. Energy planning needs to be done as the basis of a government policy in managing energy in order to realize national energy independence and security. This paper focuses on achieving the use of new and renewable energy according to the target of the National Energy Policy in 2025 in Java Island. Energy planning is carried out using the Computable General Equilibrium (CGE) model approach, which is an approach that can illustrate the balance between energy supply and needs. Simulations are made in the Green Energy (GREN) scenario by including several key parameters for the year of projections 2016-2025. The simulation results show an increase in the percentage of new and renewable energy use in the energy mix in 2025 by 12%. This explains that the target of National Energy Policy towards the use of new and renewable energy is reached, which is equal to 23%.

Suggested Citation

  • Daryono Daryono & Sugeng Wahyudi & Suharnomo Suharnomo, 2019. "The Development of Green Energy Policy Planning Model to Improve Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 216-223.
    • Handle: RePEc:eco:journ2:2019-05-24
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    References listed on IDEAS

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    2. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
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    Cited by:

    1. Marina V. Shinkevich & Irina G. Ershova & Izida I. Ishmuradova & Valeriy I. Prasolov & Alexey I. Prokopyev & Yana A. Cherezova, 2021. "State Priorities in the Petrochemistry of Russia: Sustainable Development, Green Industry and Energy Efficiency," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 59-68.
    2. Henrique Oliveira & Víctor Moutinho, 2021. "Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis," Energies, MDPI, vol. 14(15), pages 1-28, July.
    3. J. Restrepo-Trujillo & Ricardo Moreno-Chuquen & Francy Nelly Jim nez-Garc a, 2020. "Strategies of Expansion for Electric Power Systems Based on Hydroelectric Plants in the Context of Climate Change: Case of Analysis of Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 66-74.
    4. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    5. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    6. Dzyuba, Yu. & Bakalova, I., 2023. "CGE models for resource-based economy: A comprehensive bibliometric analysis," Journal of the New Economic Association, New Economic Association, vol. 61(4), pages 12-50.

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    More about this item

    Keywords

    green energy; projection; LEAP; new and renewable; CGE.;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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