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The impact of a household biogas programme on energy use and expenditure in East Java

Author

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  • Bedi, Arjun S.
  • Sparrow, Robert
  • Tasciotti, Luca

Abstract

Biogas has been promoted as a renewable, cleaner and cheaper energy source. While there are several initiatives promoting the use of biogas, credible analyses of its effects on the use of alternative energy sources and energy related expenditure are limited. This study uses panel data from households engaged in dairy farming in rural East Java to assess the impact of a household level programme, which promotes the construction of digesters that produce biogas, on energy use and expenditures. Both a difference-in-difference analysis and a pipeline comparison show that the use of digesters leads to a sharp reduction in energy related expenditures and a reduction in the use of firewood and liquefied petroleum gas. However, without subsidies, the payback period of between 11 and 14years, albeit based only on reductions in energy costs accruing from investing in a digester, is perhaps too long to justify the investment.

Suggested Citation

  • Bedi, Arjun S. & Sparrow, Robert & Tasciotti, Luca, 2017. "The impact of a household biogas programme on energy use and expenditure in East Java," Energy Economics, Elsevier, vol. 68(C), pages 66-76.
    • Handle: RePEc:eee:eneeco:v:68:y:2017:i:c:p:66-76
    DOI: 10.1016/j.eneco.2017.09.006
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    References listed on IDEAS

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    1. Katuwal, Hari & Bohara, Alok K., 2009. "Biogas: A promising renewable technology and its impact on rural households in Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2668-2674, December.
    2. Bedi, Arjun S. & Pellegrini, Lorenzo & Tasciotti, Luca, 2015. "The Effects of Rwanda’s Biogas Program on Energy Expenditure and Fuel Use," World Development, Elsevier, vol. 67(C), pages 461-474.
    3. van Groenendaal, Willem & Gehua, Wang, 2010. "Microanalysis of the benefits of China's family-size bio-digesters," Energy, Elsevier, vol. 35(11), pages 4457-4466.
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    2. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
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    6. Ricardo Situmeang & Jana Mazancová & Hynek Roubík, 2022. "Technological, Economic, Social and Environmental Barriers to Adoption of Small-Scale Biogas Plants: Case of Indonesia," Energies, MDPI, vol. 15(14), pages 1-16, July.
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    More about this item

    Keywords

    Energy policy; Renewable energy; Biogas; Indonesia;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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