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Dynamic Model for the Consumption of Electrical Energy in Indonesia

Author

Listed:
  • Sudati Nur Safiah

    (Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia)

  • Rr. Retno Sugiharti

    (Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia)

  • Rian Destiningsih

    (Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia)

  • Putra Arif Budiman

    (Faculty of Economics, Universitas Tidar, Magelang, Central Java, 56116, Indonesia)

Abstract

This study aims to find the existence of a long-term relationship between subsidized energy, population, inflation, economic growth, and consumption of electrical energy in Indonesia for the period of 1987-2018. In order to analyse the existence of long run relationship, this research was conducted using the Autoregressive Distributed Lag (ARDL) model. This research focused on the energy subsidy, considering that Indonesia is one of the four countries that still apply subsidized energy. The findings suggest that that there is a long-term cointegration between electricity consumption with regressor variables. The result of Estimation Result of ARDL also confirms the existence of long-term relationships on variables in the model.

Suggested Citation

  • Sudati Nur Safiah & Rr. Retno Sugiharti & Rian Destiningsih & Putra Arif Budiman, 2021. "Dynamic Model for the Consumption of Electrical Energy in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 356-362.
    • Handle: RePEc:eco:journ2:2021-05-39
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    More about this item

    Keywords

    energy consumption; electricity; economic growth; Indonesia;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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