The Factors Affecting the Household Energy Consumption, Energy Elasticity, and Energy Intensity in Indonesia

International Conference on Entrepreneurship, Business, and Social Sciences (ICEBSS), August 2015, University of Diponegoro (UNDIP) Semarang and State University of Jakarta (UNJ), International Proceedings: ISBN 978-602-14716-2-3

14 Pages Posted: 22 Aug 2015

See all articles by Tongam Sihol Nababan

Tongam Sihol Nababan

University of HKBP Nommensen, Faculty of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 13, 2015

Abstract

The purpose of the study is to explore and analyze the factors influencing the consumption, elasticity, and intensity of household energy sector in Indonesia. The estimated variables in this research based on energy and economic indicators in the period of 2000-2013. To get the better result, the estimation used a model of a logarithm natural in forms of doublelog and linearlog. The estimation of household energy consumption used doublelog model and the estimation of intensity of final energy per capita used linearlog model.

The results based on the simple regression analysis show that variables individually: gross domestic product, the number of population, the number of households, and the final energy consumption per capita has positive and significant effect (α = 1 %) on the energy consumption of households. The number of population and the number of household are the most dominant variables affect the energy consumption of households. It means the more the number of population and households the higher energy consumption of households. Then individually, variables of gross domestic product, the number of population, the number of households, the final energy consumption per capita has positive and significant effect (α = 1 %) on the intensity of final energy per capita.

The intensity of final energy per capita in the period of 2000-2013 continues to rise, which implies that the price or the cost of energy conversion to gross domestic product to be higher and inefficient. During the period of 2000-2013 the value of elasticity of household energy consumption is less than one (e < 1). It means that household sector has been making use of energy with more efficient. Then during the period of 2000-2013 the value of intensity of households energy tends to decrease, it shows that the use of energy households to be more efficient.

Keywords: final energy, household sector, elasticity, intensity, gross domestic product (GDP)

JEL Classification: D12, O12, Q43

Suggested Citation

Nababan, Tongam Sihol, The Factors Affecting the Household Energy Consumption, Energy Elasticity, and Energy Intensity in Indonesia (August 13, 2015). International Conference on Entrepreneurship, Business, and Social Sciences (ICEBSS), August 2015, University of Diponegoro (UNDIP) Semarang and State University of Jakarta (UNJ), International Proceedings: ISBN 978-602-14716-2-3. Available at SSRN: https://ssrn.com/abstract=2648790

Tongam Sihol Nababan (Contact Author)

University of HKBP Nommensen, Faculty of Economics ( email )

Jln. Sutomo No. 4A
Medan, North Sumatra 20118
Indonesia
08126411543 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
120
Abstract Views
774
rank
196,570
PlumX Metrics