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GMM Approach to Residential Electricity Consumption in Indonesia

Author

Listed:
  • Julie Ann Basconcillo
  • Aurelija Rimkute

    (Faculty of Economics and Business, Airlangga University, Indonesia.)

Abstract

This study reinvestigates the effects of socioeconomic factors on residential electricity consumption in 33 provinces of Indonesia during 2014–2020. We estimate two dynamic panel models of electricity demand at two levels, namely, the household and aggregate residential sectors. The gross regional domestic product per capita, unlike tariffs, significantly impacts consumption. The population size and electrification ratio also positively impact aggregate demand, suggesting the effectiveness of policy related to electricity access.

Suggested Citation

  • Julie Ann Basconcillo & Aurelija Rimkute, 2024. "GMM Approach to Residential Electricity Consumption in Indonesia," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 4(3), pages 1-7.
    • Handle: RePEc:ayb:jrnerl:88
    DOI: 2024/07/09
    as

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    References listed on IDEAS

    as
    1. Badi H. Baltagi, 2021. "Econometric Analysis of Panel Data," Springer Texts in Business and Economics, Springer, edition 6, number 978-3-030-53953-5, December.
    2. Burke, Paul J. & Kurniawati, Sandra, 2018. "Electricity subsidy reform in Indonesia: Demand-side effects on electricity use," Energy Policy, Elsevier, vol. 116(C), pages 410-421.
    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    4. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    5. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Household; Electricity consumption; GMM; Indonesia;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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