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Energy Consumption and Economic Growth in Indonesia

Author

Listed:
  • Nguyen Duy Dat

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Nguyen Hoang

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Mai Thanh Huyen

    (Thuong Mai University, Ha Noi, Vietnam,)

  • Dinh Tran Ngoc Huy

    (Banking University, Ho Chi Minh City, Vietnam,)

  • Luong Minh Lan

    (Van Lang University, Ho Chi Minh City, Vietnam.)

Abstract

The aim of following study was to examine the relationship between energy consumption and economic growth in Indonesia. This study has used quantitative research design for assessing the energy consumption and its link with economic growth in Indonesia for the period of 2000-2019. The independent variable in this study was energy consumption whereas; dependent variable was economic growth in Indonesia .The data is analysed through E-views using Autoregressive Distributed Lag (ARDL) co-integration approach for long-run relationship, and long-run and short-run coefficients, Augmented Dickey Fuller (ADF) and Johansen co-integration. The findings have revealed that economic growth and energy consumption has association with each other. Within the given historic data, energy consumption has the ability to predict economic growth in Indonesia. The research can be improved through increasing sample size, number of variables and countries for comparison. This study also provides the guideline to the polcymakers that they should develop the policies related to the energy consumption that enhance the economic growth of the country.

Suggested Citation

  • Nguyen Duy Dat & Nguyen Hoang & Mai Thanh Huyen & Dinh Tran Ngoc Huy & Luong Minh Lan, 2020. "Energy Consumption and Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 601-607.
    • Handle: RePEc:eco:journ2:2020-05-71
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    References listed on IDEAS

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    Cited by:

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    2. Kelvan Darrian & Yohanes B. Kadarusman & Dandy Rafitrandi, 2023. "Energy and Economic Growth Nexus: A Long-run Relationship in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 69, pages 1-14, Juni.
    3. Xue Wu & Yaliu Yang & Conghu Liu & Guowei Xu & Yuxia Guo & Fan Liu & Yuan Wang, 2021. "Sustainability of Regional Agroecological Economic System Based on Emergy Theory: A Case Study of Anhui Province, China," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    4. Fatima Zahraa Tatou & Abdellah Yousfi & Tawfiq Rahaoui, 2023. "The Relationship between Economic Growth and Energy Consumption Disaggregated by Sector: The Case of Morocco," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 538-544, May.
    5. Cordelia Onyinyechi Omodero & Uwuigbe Uwalomwa, 2021. "Energy Absorption, CO2 Emissions and Economic Growth Sustainability in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 69-74.
    6. Ranti Darwin & Dyah Wulan Sari & Unggul Heriqbaldi, 2022. "Dynamic Linkages between Energy Consumption, Foreign Direct Investment, and Economic Growth: A New Insight from Developing Countries in Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 30-36, November.

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    More about this item

    Keywords

    Energy consumption; economic growth; GDP; CO2 emissions;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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