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The economy-wide impact of controlling energy consumption in Indonesia: An analysis using a Social Accounting Matrix framework

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  • Hartono, Djoni
  • Resosudarmo, Budy P.

Abstract

Escalating oil prices and the need to control carbon emissions sound the alarm for Indonesia to reduce or be more efficient in its energy use. Instead of eliminating the fuel oil subsidy to promote better and more efficient use of energy, the Indonesian government seems to be more in favour of restricting energy use by, for example, requiring all hotels, restaurants, night clubs and other business activities to close down by 1Â am. Societies need to understand the full consequences of adopting restricting energy use and more efficient energy use strategies toward their incomes. This paper aims to analyse the impact on the economy of energy policies aiming to reduce and to improve the efficiency of energy use, particularly on the income of various household groups. This paper will, first, construct a Social Accounting Matrix for Indonesia with detailed energy sectors and, second, utilise various multiplier analyses to observe and understand the impact of these energy policies.

Suggested Citation

  • Hartono, Djoni & Resosudarmo, Budy P., 2008. "The economy-wide impact of controlling energy consumption in Indonesia: An analysis using a Social Accounting Matrix framework," Energy Policy, Elsevier, vol. 36(4), pages 1404-1419, April.
  • Handle: RePEc:eee:enepol:v:36:y:2008:i:4:p:1404-1419
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    References listed on IDEAS

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    Cited by:

    1. Akkemik, K. Ali, 2011. "Potential impacts of electricity price changes on price formation in the economy: a social accounting matrix price modeling analysis for Turkey," Energy Policy, Elsevier, vol. 39(2), pages 854-864, February.
    2. Lilia Endriana & Djoni Hartono & Tony Irawan, 2016. "Green economy priority sectors in Indonesia: a SAM approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 115-135, January.
    3. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    4. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1099-1127, August.
    5. Hasan, M.H. & Muzammil, W.K. & Mahlia, T.M.I. & Jannifar, A. & Hasanuddin, I., 2012. "A review on the pattern of electricity generation and emission in Indonesia from 1987 to 2009," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 3206-3219.
    6. Budy P Resosudarmo & Ariana Alisjahbana & Ditya Agung Nurdianto, 2010. "Energy Security in Indonesia," Departmental Working Papers 2010-08, The Australian National University, Arndt-Corden Department of Economics.
    7. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.

    More about this item

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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