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Aggressiveness of the Electricity Sector and Implications for Energy GDP (Comparative Test of Indonesia-Malaysia)

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  • Jiuhardi Jiuhardi

    (Department of Economics, Faculty of Economics and Business, Mulawarman University, Indonesia.)

  • Michael Michael

    (Department of Economics, Faculty of Economics and Business, Mulawarman University, Indonesia.)

Abstract

Keep in mind, energy is fluctuating. The dependence of electricity production from fossil fuels is a valuable lesson for stakeholders to think about and inspire the creation of the latest technology. Although the contribution of fossil fuels has grown the flow of industry in various worlds, they must limit it as early as possible. We set this research up based on a quantitative approach that aims to examine the impact of fossil fuels electricity generation on GDP per unit of energy used, electricity production capacity, and access to electricity. Indonesia and Malaysia as countries that represent empirical objectivity to be reviewed on how the causality of the research objectives for the period 2013-2020. We collected the data source through The Global Economy, which is very concerned with highlighting global economic developments. Multiple regression and path analysis support this work. Interestingly, the three findings for the case study in Indonesia support the design hypothesis (p <0.05), whereas the two hypotheses in Malaysia (p <0.05). The determinant of GDP per unit of energy used has met two-way causality. There are short-term and long-term prospects from other relationships that are not significant (p> 0.05). Besides the economic element, it does not balance the results due to demographic factors in Indonesia, which are larger in composition than Malaysia. Future agenda need to discuss the implications of further referring to this research.

Suggested Citation

  • Jiuhardi Jiuhardi & Michael Michael, 2022. "Aggressiveness of the Electricity Sector and Implications for Energy GDP (Comparative Test of Indonesia-Malaysia)," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 323-330, May.
    • Handle: RePEc:eco:journ2:2022-03-35
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    References listed on IDEAS

    as
    1. Chen, Sheng-Tung & Kuo, Hsiao-I & Chen, Chi-Chung, 2007. "The relationship between GDP and electricity consumption in 10 Asian countries," Energy Policy, Elsevier, vol. 35(4), pages 2611-2621, April.
    2. Esen, Ömer & Bayrak, Metin, 2017. "Does More Energy Consumption Support Economic Growth in Net Energy-Importing Countries?," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 22(42), pages 75-98.
    3. Frank J. Alessio, 1981. "Energy Analysis and the Energy Theory of Value," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 61-74.
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    Cited by:

    1. Wenny Candra Mandagie & Kiandra Putri Susanto & Endri Endri & Arjuna Wiwaha, 2024. "Oil Price and Corporate Social Responsibility Disclosure (CSRD): Evidence from Indonesian Energy Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 694-701, May.

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    More about this item

    Keywords

    Electricity; fossil fuels; GDP of energy; Indonesia; Malaysia;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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