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Multiplier Effect of Energy Infrastructure on GRDP: Horizon in 3 Production Areas in East Kalimantan Indonesia

Author

Listed:
  • Diana Lestari

    (Faculty of Economics and Business, Mulawarman University, Samarinda 75119, East Kalimantan, Indonesia)

  • Zamruddin Hasid

    (Faculty of Economics and Business, Mulawarman University, Samarinda 75119, East Kalimantan, Indonesia)

  • Arfiah Busari

    (Faculty of Economics and Business, Mulawarman University, Samarinda 75119, East Kalimantan, Indonesia)

  • Aji Alya Ananda

    (Faculty of Economics and Business, Mulawarman University, Samarinda 75119, East Kalimantan, Indonesia)

Abstract

The Earth is experiencing a climatic decline that exposes the degradation of the atmosphere. Unfortunately, failure to observe economic growth is not realized by developing markets, which accumulate and exhaust energy resources expansively. Therefore, this article aims to investigate the effect of electricity distribution, gas consumption, and clean water on GRDP which is addressed in three objects (Samarinda Bontang Balikpapan). The data interpretation technique uses panel data regression. With a time selection from 2016 2021, the results of the analysis verify several vital points, including: (1) The distribution of electricity and clean water has a positive effect and increases GRDP, but in Samarinda, the distribution of electricity has a significant impact (? <0.05) and clean water not significant (?> 0.05); (2) From Bontang, the increase in distribution of electricity and clean water also had a positive effect and significantly increased GRDP (? <0.05), but only gas consumption had a negative insignificant effect on GRDP (?> 0.05); and (3) In Balikpapan, gas consumption has had a positive significant impact on GRDP (? <0.05), where clean water gas has a positive but not significant increase in GRDP and an increase in electricity distribution has a negative not significant impact on GRDP (?> 0.05). In fact, Indonesia as a nation equipped with abundant natural resources is less aware of managing and driving integrated development. That way, energy demand must be balanced with equity policies that protect the environment, restrain greed, and purify nature without overexploitation of natural resources.

Suggested Citation

  • Diana Lestari & Zamruddin Hasid & Arfiah Busari & Aji Alya Ananda, 2022. "Multiplier Effect of Energy Infrastructure on GRDP: Horizon in 3 Production Areas in East Kalimantan Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 127-136, November.
  • Handle: RePEc:eco:journ2:2022-06-17
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    More about this item

    Keywords

    electricity distribution; gas consumption; clean water; GRDP; hypothesis testing; panel data regression;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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