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Sources of change in the demand for energy by Indonesian households: 1980–2002

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  • Chen, Joyce J.
  • Pitt, Mark M.

Abstract

This paper describes the energy transition in Indonesia and examines the determinants of energy demand, by fuel. The key innovation of this paper is the documentation of how these relationships have evolved over time. We present a new method to combine econometric analysis and index decomposition analysis to examine household energy transition. This approach also allows us to consider a broad range of demographic and structural factors, while providing a clear and concise representation of our findings. We find that the composite indices mask important underlying patterns. In particular, our results indicate that energy transition in Indonesia cannot be confidently attributed to any one index. Rather, it has been driven predominantly by the triple interaction of demographics, income growth, and change in demand/supply parameters. Our findings point to the importance of utilizing time-series data in studying both the characteristics and determinants of energy transition in developing countries.

Suggested Citation

  • Chen, Joyce J. & Pitt, Mark M., 2017. "Sources of change in the demand for energy by Indonesian households: 1980–2002," Energy Economics, Elsevier, vol. 61(C), pages 147-161.
  • Handle: RePEc:eee:eneeco:v:61:y:2017:i:c:p:147-161
    DOI: 10.1016/j.eneco.2016.10.025
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    References listed on IDEAS

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    Cited by:

    1. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019. "Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania," Energy Policy, Elsevier, vol. 130(C), pages 243-252.
    2. Pui, Kiew Ling & Othman, Jamal, 2019. "The influence of economic, technical, and social aspects on energy-associated CO2 emissions in Malaysia: An extended Kaya identity approach," Energy, Elsevier, vol. 181(C), pages 468-493.
    3. Robi Kurniawan & Gregory P. Trencher & Achmed S. Edianto & Imam E. Setiawan & Kazuyo Matsubae, 2020. "Understanding the Multi-Faceted Drivers of Increasing Coal Consumption in Indonesia," Energies, MDPI, Open Access Journal, vol. 13(14), pages 1-1, July.

    More about this item

    Keywords

    Energy transition; Demography; Indonesia;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • 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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