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

NABABAN, TONGAM SIHOL (2015): The Factors Affecting the Household Energy Consumption, Energy Elasticity,and Energy Intensity in Indonesia. Published in: International Conference on Entrepreneurship, Business, and Social Sciences (ICEBSS) 2015 , Vol. 1, No. International Proceedings ISBN 978-602-14716-2-3. (13 August 2015): pp. 1-14.

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 .

• Item Type: MPRA Paper
• Language: English
• Keywords: final energy, household sector, elasticity, intensity, gross domestic product
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis

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