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The Energy Demand Elasticity in Relation to Gross Domestic Product in Indonesia: Sectoral Approach

Author

Listed:
  • Suharno Suharno

    (Department of Economics and Development Studies, Faculty of Economics and Business, Jenderal Soedirman University, Indonesia)

  • Nurul Anwar

    (Department of Economics and Development Studies, Faculty of Economics and Business, Jenderal Soedirman University, Indonesia)

Abstract

This paper aims at estimating the energy demand elasticity in relation to gross domestic product in Indonesia based on data from 1995 to 2018. The sectors examined are industry, trading, transportation, and housing sectors. The method of analysis is the Autoregressive Distributed Lag (ARDL). An interesting estimation result here is that the elasticity of the industry sector is negative both short and long term. The other three sectors show positive elasticity. This paper contributes to the discussion of the energy demand ARDL model to be used as a reference in developing countries.

Suggested Citation

  • Suharno Suharno & Nurul Anwar, 2022. "The Energy Demand Elasticity in Relation to Gross Domestic Product in Indonesia: Sectoral Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 634-640, July.
    • Handle: RePEc:eco:journ2:2022-04-63
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    References listed on IDEAS

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    More about this item

    Keywords

    The elasticity of energy use; sectoral; economic growth; autoregressive distributed lag model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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