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Promoting Economic Growth and Environmental Sustainability through Energy Efficiency: Evidence from Indonesia

Author

Listed:
  • Rita Helbra Tenrini

    (Fiscal Policy Agency of Ministry of Finance, Indonesia)

  • Sofia Arie Damayanty

    (Fiscal Policy Agency of Ministry of Finance, Indonesia)

  • Dhani Setyawan

    (Fiscal Policy Agency of Ministry of Finance, Indonesia)

  • Hadi Setiawan

    (Fiscal Policy Agency of Ministry of Finance, Indonesia)

  • Rakhmindyarto Rakhmindyarto

    (Fiscal Policy Agency of Ministry of Finance, Indonesia)

Abstract

Indonesia has set a unilateral greenhouse gas emissions (GHG) reduction target by 29% and conditional targets with international support of up to 41%, compared to the business as usual by 2030. This paper aims to formulate energy conservation policies to increase productivity and promote economic growth in Indonesia. Indonesia's energy conservation policy has multiple aspects: supporting energy security, commitment to GHG emission reduction, state budget efficiency, and improving productivity and competitiveness. Using Social Accounting Matrix (SAM), this study found evidence that energy efficiency saving will positively affect ecological sustainability and economic agents in the five targeted sectors: energy, waste, industrial processes, and production use, agriculture, and forestry. Furthermore, the Corporate Social Responsibility (CSR) policy provides positive effects in increasing economic growth and reducing income disparities.

Suggested Citation

  • Rita Helbra Tenrini & Sofia Arie Damayanty & Dhani Setyawan & Hadi Setiawan & Rakhmindyarto Rakhmindyarto, 2021. "Promoting Economic Growth and Environmental Sustainability through Energy Efficiency: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 314-320.
    • Handle: RePEc:eco:journ2:2021-05-35
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy Conservation; Energy Efficiency; Economic Growth; Environmental Sustainability.;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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