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The economy-wide impact of controlling energy consumption in Indonesia: An analysis using a Social Accounting Matrix framework

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Hartono, Djoni
Resosudarmo, Budy P.

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Abstract

Escalating oil prices and the need to control carbon emissions sound the alarm for Indonesia to reduce or be more efficient in its energy use. Instead of eliminating the fuel oil subsidy to promote better and more efficient use of energy, the Indonesian government seems to be more in favour of restricting energy use by, for example, requiring all hotels, restaurants, night clubs and other business activities to close down by 1Â am. Societies need to understand the full consequences of adopting restricting energy use and more efficient energy use strategies toward their incomes. This paper aims to analyse the impact on the economy of energy policies aiming to reduce and to improve the efficiency of energy use, particularly on the income of various household groups. This paper will, first, construct a Social Accounting Matrix for Indonesia with detailed energy sectors and, second, utilise various multiplier analyses to observe and understand the impact of these energy policies.

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Publisher Info
Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 36 (2008)
Issue (Month): 4 (April)
Pages: 1404-1419
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Handle: RePEc:eee:enepol:v:36:y:2008:i:4:p:1404-1419

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  1. Pacudan, Romeo & de Guzman, Elaine, 2002. "Impact of energy efficiency policy to productive efficiency of electricity distribution industry in the Philippines," Energy Economics, Elsevier, vol. 24(1), pages 41-54, January. [Downloadable!] (restricted)
  2. Brookes, Len, 1990. "The greenhouse effect: the fallacies in the energy efficiency solution," Energy Policy, Elsevier, vol. 18(2), pages 199-201, March. [Downloadable!] (restricted)
  3. Budy Resosudarmo & Erik Thorbecke, 1998. "Reducing the Number of Pesticide- Related Illnesses: The Impact on Household Incomes in Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 34(2), pages 143-157, August. [Downloadable!] (restricted)
  4. Benedict CLEMENTS & Hong-Sang JUNG & Sanjeev GUPTA, 2007. "Real And Distributive Effects Of Petroleum Price Liberalization: The Case Of Indonesia," The Developing Economies, Institute of Developing Economies, vol. 45(2), pages 220-237. [Downloadable!] (restricted)
  5. Resosudarmo, Budy P. & Thorbecke, Erik, 1996. "The impact of environmental policies on household incomes for different socio-economic classes: The case of air pollutants in Indonesia," Ecological Economics, Elsevier, vol. 17(2), pages 83-94, May. [Downloadable!] (restricted)
  6. Lewis, Blane D. & Thorbecke, Erik, 1992. "District-level economic linkages in Kenya: Evidence based on a small regional social accounting matrix," World Development, Elsevier, vol. 20(6), pages 881-897, June. [Downloadable!] (restricted)
  7. Koop, Gary, 2001. "Cross-Sectoral Patterns of Efficiency and Technical Change in Manufacturing," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(1), pages 73-103, February.
  8. Budy P. Resosudarmo, 2002. "Indonesia's Clean Air Program," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(3), pages 343-365, December. [Downloadable!] (restricted)
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  9. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December. [Downloadable!] (restricted)
  10. Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November. [Downloadable!] (restricted)
  11. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis And Energy-Saving Technological Change," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 941-975, August. [Downloadable!] (restricted)
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  12. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-36, March. [Downloadable!] (restricted)
  13. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 1(4), pages 21-40.
  14. Binswanger, Mathias, 2001. "Technological progress and sustainable development: what about the rebound effect?," Ecological Economics, Elsevier, vol. 36(1), pages 119-132, January. [Downloadable!] (restricted)
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