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Power Generation Infrastructure and its Effect on Electric Energy Consumption: Context in Indonesia, 2013 2020

Author

Listed:
  • Zamruddin Hasid

    (Faculty of Economics and Business, Mulawarman University, Samarinda City (75119), Indonesia.)

  • Muhammad Saleh Mire

    (Faculty of Economics and Business, Mulawarman University, Samarinda City (75119), Indonesia.)

  • Eny Rochaida

    (Faculty of Economics and Business, Mulawarman University, Samarinda City (75119), Indonesia.)

  • Adi Wijaya

    (Faculty of Economics and Business, Mulawarman University, Samarinda City (75119), Indonesia.)

Abstract

For centuries, humans have continued to deplete natural resources. The transportation sector is claimed to be the main culprit in wasting fossil energy. The purpose of this study is to investigate the impact of Fossil Fuels Electricity (FFE), Wind Electricity (WE), Solar Electricity (SE), Hydroelectricity (H), and Geothermal Electricity (GE) on Access to Electricity (AE) in Indonesia. The collection of data obtained from the Global Economy report, processed using time-series regression. Empirical testing clarifies that the increase in the variables of FFE, WE, SE, H, and GE, has increased AE in the short term. The more FFE, WE, SE, H, and GE increase 1 percent, the more AE increases in the long run. During 2013 2020, FFE as a variable that has a dominant effect on AE, where the nature of this energy is very limited, the frequency of its use is considered. Apart from the role of FFE which is crucial for basic human needs, it is necessary to restructure the rules that regulate, monitoring, and revitalize power generation systems based on natural gas, oil, and coal.

Suggested Citation

  • Zamruddin Hasid & Muhammad Saleh Mire & Eny Rochaida & Adi Wijaya, 2023. "Power Generation Infrastructure and its Effect on Electric Energy Consumption: Context in Indonesia, 2013 2020," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 52-60, January.
    • Handle: RePEc:eco:journ2:2023-01-8
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    References listed on IDEAS

    as
    1. Ahmad, Sohail & Mathai, Manu V. & Parayil, Govindan, 2014. "Household electricity access, availability and human well-being: Evidence from India," Energy Policy, Elsevier, vol. 69(C), pages 308-315.
    2. Nayasari Aissa & Djoni Hartono, 2016. "The Impact Of Geothermal Energy Sector Development On Electricity Sector In Indonesia Economy," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 19(2), pages 1-24, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Access to Electricity; Fossil-Based Electricity; Non-Fossil-Electricity; Time Series Regression; Indonesia;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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