DOES THE ELECTRICITY CONSUMPTION DETERMINE THE ECONOMIC GROWTH AND ENERGY PRICES IN ASEAN COUNTRIES?

Abstract:

The general objective of this study is to estimate the relationship between electricity consumption, economic performance and the price of electricity in four sectors namely the industrial, commercial, mining and agricultural by using the panel data approach on leading ASEAN countries. The present study intends to contribute significantly to the existing literature by presenting a comprehensive approach of the issue of electricity consumption in Thailand. The information of electricity consumption in the industrial, commercial, agricultural and mining sectors is essential to understand the magnitude of the sectors' sensitivity to change with respect to GDP and electricity price. Moreover, real electricity price is incorporated in this study to provide a more consistent result. The findings are important for researchers and academicians by providing a better knowledge of sectoral electricity demand to permit better regulatory decisions in order to facilitate economic efficiency. Apparently for the policy makers, it will be possible that the approach of this study could be useful as a guideline to facilitate the adoption of a more appropriate model for electricity demand management as well as restructuring the electricity sectors. Furthermore, the findings of this study will be helpful in the formulation of effective energy and pricing policies in order to encourage consumers towards the efficient use of energy for the future of sustainable energy and development.

Keywords: electricity consumption; economic growth; energy prices.

Cited as:

Hakimah, Y., Nugraha, A. T., Surya, A., Ananda, A. R. W., & Astuty, P. (2019). Does The Electricity Consumption Determine the Economic Growth And Energy Prices In ASEAN Countries? Journal of Security and Sustainability Issues, 9(2), 489–503. https://doi.org/10.9770/jssi.2019.9.2(10)

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CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model.

Abstract:

The present study analyses the causal relationship between CO2 emissions, energy consumption, value-added of three development sectors and household final consumption expenditure in Indonesia using annual data from 1975 to 2014. We applied ADF and PP unit root tests, Johansen co-integration test, and Granger causality test based on vector error correction modelling. Our results indicated that although CO2 emission and energy consumption have a mutual effect, increase CO2 emissions tend given greater effect on energy consumption. CO2 emissions, energy consumption, the value-added of industry sector and household final consumption expenditure have a significant effect on the added value of agriculture sector and service sector, while the added value of agriculture sector is a key factor that driven increases the added value of service sector. In the long term, we discover that a cointegration relationship occurring when energy consumption, household final expenditure, and the value-added of three development sectors, respectively, are determined as the dependent variables in the model. Based on these results, we concluded that energy conservation and mitigation policies which accompanied the application of energy-saving technologies should be an important priority on the sustainable development planning in Indonesia, especially in order to reduce CO2 emissions and accelerate the economic growth rate in Indonesia.

Keywords: CO2 Emission, Energy Consumption, The Value Added of Development Sectors, Household Final Consumption Expenditure.

Cite as:

Nugraha, A. T., & Osman, N. H. (2019). CO2 emissions, economic growth, energy consumption, and household expenditure for Indonesia: Evidence from cointegration and vector error correction model. International Journal of Energy Economics and Policy, 9(1), 291–298.

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The Environmental Study on Causality Relationship among Energy Consumption, CO2 Emissions, the Value Added of Development Sectors and Household Final Consumption Expenditure in Indonesia.

Abstract:

The long-run estimates indicate that there is a statistically significant positive association between electricity consumption and emissions and a non-linear relationship between emissions and real output, consistent with the Environmental Kuznets Curve. The present study investigates the causal relationship between CO2 emissions, energy consumption, the value-added of three development sectors and household final consumption expenditure in Indonesia using annual time series data from 1971 to 2014. We applied the Autoregressive Distributed Lag (ARDL) method and granger causality test in order to explore the direction of relationships among the variables. Our study revealed that the growth of energy consumption and an increases the value-added of industry sector and services sector will cause a rise of CO2 emissions, while a rise of the value-added of agriculture sector potentially reduced CO2 emission and increases energy consumption. The growth of value-added on three development sectors, respectively, have a mutual relationship with household final consumption expenditure and a unidirectional relationship to energy consumption and CO2 emission in Indonesia. Furthermore, we also discovered that the value-added of services sector has a mutual relationship with the value-added of industry sector and agriculture sector, while the growth of value-added on industry sector has a negative effect to the value-added of agriculture sector. Based on these results, we concluded that the energy conservation policies can be applied to all energy user groups in Indonesia. In addition, we also suggest that policymakers can implement economic policies that can encourage increased the value-added of agriculture sector in Indonesia. 

Keywords: CO2 emission, energy consumption, the value added of development sectors, household final consumption expenditure, Environmental Kuznets Curve.

Cite as:

Nugraha, A. T., & Osman, N. H. (2018). The environmental study on causality relationship among energy consumption, CO2 emissions, the value added of development sectors and household final consumption expenditure in Indonesia. Ekoloji, 27(106), 837–852.

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The energy-economic Growth Nexus in Indonesia.

Abstract :

The aim of this study is to investigate the causal relationship between final energy consumption and economic growth for three main development sectors in Indonesia. In this study, we consider final energy consumption as energy indicator and the value-added of development sectors as an economic indicator. We use annual data from 1971 to 2014 and collected data from the international energy agency and the world development indicator. We use Autoregressive distributed lag (ARDL) technique for cointegration and Granger causality approach to explore the direction of causality between the variables. We found a bidirectional relationship between energy and economic growth in the industrial sector in the long-run and in the services sector in the short-run. Furthermore, we found a unidirectional relationship from economic growth to energy consumption in the services sector in the long-term and in the agriculture sector in the short and long terms. Based on these results, we concluded that economic growth is significantly influenced by final energy consumption on three development sectors in Indonesia, especially in the long- term. However, this study only focuses on exploring energy-economic growth nexus on three development sectors in Indonesia and provide specific information for the policymakers on the three sectors in Indonesia. This study provides a new approach in terms of exploring energy-economic growth nexus in a single country and assesses that energy- economic growth nexus in a single country should consider situations and conditions in each development sectors.

Keywords: ARDL bounds, granger causality, final energy consumption, economic growth, development sector, Indonesia.

Cite as:

Nugraha, A. T., & Osman, N. H. (2017). The energy-economic Growth Nexus in Indonesia. Journal of Business Management and Accounting, 7(2), 61–76. 

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