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Building an Energy Consumption Model and Sustainable Economic Growth in Emerging Countries

Author

Listed:
  • Andi Desfiandi

    (Faculty of Economics and Business, Darmajaya Institute Informatics and Business, Lampung, Indonesia)

  • Faurani Santi Singagerda

    (Faculty of Economics, University of Sang Bumi Ruwa Jurai, Bandar Lampung, Lampung, Indonesia,)

  • Anuar Sanusi

    (Faculty of Economics and Business, Darmajaya Institute Informatics and Business, Lampung, Indonesia.)

Abstract

The research objective is to develop a model of consumption energy, using a model of simultaneous equations with two-stage least square method and some of the assumptions that economic progress will have an impact on increasing energy consumption. The study found several macroeconomic factors such as energy prices, GDP, and exchange rates affecting the level of consumption energy. Whereas the increase in world oil prices and the reduction in the fuel subsidy budget by the government will have an impact on decreasing energy consumption in Indonesia. Forecasting analysis showed that overall energy consumption by all sectors tends to increase, except for biomass consumption by industry and total biomass consumption. In addition, it was also found that there was a small tendency for energy supply to offset the increase in energy consumption in the country.

Suggested Citation

  • Andi Desfiandi & Faurani Santi Singagerda & Anuar Sanusi, 2019. "Building an Energy Consumption Model and Sustainable Economic Growth in Emerging Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 51-66.
    • Handle: RePEc:eco:journ2:2019-02-7
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    References listed on IDEAS

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    Cited by:

    1. Hasinat Raquiba & Zuaini Ishak, 2020. "Sustainability Reporting Practices in the Energy Sector of Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 508-516.
    2. Udin Udin, 2020. "Renewable Energy and Human Resource Development: Challenges and Opportunities in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 233-237.
    3. Anuar Sanusi & Faurani Santi Singagerda & Ahmad Zaharuddin Sani, 2021. "World Oil Price Shocks in Macroeconomic ASEAN +3 Countries: Measurement of Risk Management and Decision-making a Linear Dynamic Panel Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 75-83.
    4. Ida Farida & Faurani Santi Singagerda, 2021. "Volatilitiy of World Food Commodity Prices and Renewable Fuel Standard Policy," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 516-527.
    5. Luis Marcos Castellanos & Hernan Hernandez-Herrera & Jorge I. Silva-Ortega & Vicente Leonel Mart nez Diaz & Zaid Garc a Sanchez, 2019. "Potential Energy Savings and CO2 Emissions Reduction in Colombia Compressed Air Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 71-78.

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    More about this item

    Keywords

    Energy; Consumption; Supply;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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