Transformasi Energi dan Ekonomi: Dampak Investasi Energi Terhadap Konsumsi Listrik dan Ketimpangan Ekonomi di Indonesia

Ranti Darwin; Muhammad  Hidayat; Dwi Widiarsih; M.Fikry Hadi; Mizan Asnawi

doi:10.37859/jae.v15i1.9031

Authors

Ranti Darwin Universitas Muhammadiyah Riau
Muhammad Hidayat Universitas Muhammadiyah Riau
Dwi Widiarsih Universitas Muhammadiyah Riau
M.Fikry Hadi Universitas Muhammadiyah Riau
Mizan Asnawi Universitas Muhammadiyah Riau

DOI:

https://doi.org/10.37859/jae.v15i1.9031

Keywords: electricity consumption, economic inequality, energy investment, economic growth, 2sls

Abstract

This study aims to explore the influence and simultaneous relationship between electricity consumption and economic inequality in Indonesia. This study uses time series data for the country of Indonesia for the period 2000-2023 sourced from the BPS. This research method uses simultaneous equations with the 2SLS (Two-Stage Least Square) approach as its best method with more consistent results and lower standard errors compared to the 3SLS model. The results of this study indicate that in the first stage of estimation, economic inequality and energy investment have a negative effect on electricity consumption in Indonesia. Electrification has a positive effect on electricity consumption in Indonesia. However, household electricity sales do not affect electricity consumption in Indonesia. In the second stage of estimation, electricity consumption and unemployment rates have a negative effect on economic inequality in Indonesia. Furthermore, economic growth has a positive effect on economic inequality in Indonesia.

Downloads

Download data is not yet available.

References

Aghaei, M., & Lawell, C. . C. L. (2020). Energy, Economic Growth, Inequality, And Poverty in Iran. The Singapore Economic Review, 67(02), 21-38.

Ahn, S., & Hemmings, P. (2000). Policy influences on economic growth in OECD countries: An evaluation of the evidence (No.246). France: Economic Departemen Working Papers.

Aklin, M., Bayer, P., Harish, S. P., & Urpelainen, J. (2018). Escaping the energy poverty trap: When and how governments power the lives of the poor. Cambridge: MIT Press.

Banerjee, A., & Duflo, E. (2019). Good Economics for Hard Times. New York: PublicAffairs.

Bank, W. (2023). World Bank Indicators. Washington, DC: World Bank.

Basmann, R. L. (1957). A Generalized Classical Method of Linear Estimation of Coefficients in a Structural Equation. Econometrica, 25(1), 77–83.

Basri, M. C., & Hill, H. (2021). Indonesian economy in transition: Policy challenges in the Jokowi era and beyond. Cambridge: Cambridge University Press.

Blimpo, M. P., & Cosgrove-Davies, M. (2019). Electricity access in Sub-Saharan Africa: Uptake, reliability, and complementary factors for economic impact. Wanshington, DC: World Bank Publications.

Chen, F., Qiu, H., & Zhang, J. (2022). Energy consumption and income of the poor in rural China: Inference for poverty measures. Energy Policy, 163, 112865.

Darwin, R., Sari, D. W., & Heriqbaldi, U. (2022). Dynamic Linkages between Energy Consumption, Foreign Direct Investment, and Economic Growth: A New Insight from Developing Countries in Asia. International Journal of Energy Economics and Policy, 12(6), 30–36.

Dogan, E., Madaleno, M., & Taskin, D. (2018). Electricity Consumption and Economic Development: Panel Data Evidence for OECD Countries. Energy Policy, 118, 188–199.

Filippini, M., & Pachauri, S. (2019). Elasticities of electricity demand in urban Indian households. Energy Policy, 125, 521–536.

Galbraith, J. K. (2012). Inequality and instability: A study of the world economy just before the great crisis. Oxford: Oxford University Press.

Greene, W. H. (2012). Econometric Analysis ((7th ed.)). Boston: Pearson.

Hansen, lars peter. (1982). Large Sample Properties of Generalized Method of Moments Estimators. Econometrica, 50(4), 1029–1054.

Hidayat, M. (2023). Ketimpangan Pembangunan Antar Wilayah di Pulau Sumatera, Pendekatan Spasial Ekonomi. Jurnal Akuntansi Dan Ekonomika, 13(1), 11–18.

Inglesi-Lotz, R. (2018). The impact of renewable energy consumption to economic growth: A panel data application. Energy Economics, 69, 106–113.

Jamasb, T., & Pollitt, M. (2005). Electricity market reform in the European Union: Review of progress toward liberalization & integration. The Energy Journal, 26, 11–41.

Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45(1), 1–28.

Lee, K., Miguel, E., & Wolfram, C. (2020). Does household electrification supercharge economic development? Journal of Economic Perspectives, 31(1), 122–144.

Nguyen, C. V., Nguyen, K. D., & Tran, T. Q. (2023). Inequality in electricity consumption and economic growth: Evidence from a small area estimation study. PLoS ONE, 18(7 July), 1–16.

Sadorsky, P. (2011). The impact of financial development on energy consumption in emerging economies. Energy Policy, 39(8), 4499–4506.

Sargan, J. . D. . (1958). The Estimation of Economic Relationships using Instrumental Variables. Econometrica, 26(3), 393–415.

Shahbaz, M., Khan, S., & Tahir, M. (2017). The dynamic links between energy consumption, economic growth, financial development, and trade openness: Evidence from a panel of South Asian countries. Energy Economics, 61, 425–437.

Staiger, D., & Stock, J. H. (1997). Instrumental Variables Regression with Weak Instruments. Econometrica, 65(3), 557–586.

Stock, J. H., & Watson, M. W. (2011). Introduction to Econometrics (3rd ed). Boston: Pearson.

Theil, H. (1953). Repeated Least Squares Applied to Complete Equation Systems. The Hague: Central Pl.

Todaro, M. ., & Smith, S. . (2020). Economic Development (13th ed). Boston: Pearson.

Wang, Q., Su, B., & Li, R. (2021). The impact of income inequality on energy consumption: A global perspective. Energy Reports, 7, 271–280.

Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data (2nd ed). Washington, DC: MIT Press.

Wu, S., Li, C. zhong, & Wei, C. (2022). Electricity consumption as a new indicator of inequality. Energy Research and Social Science, 90(59), 102677.

Zhang, C., & Lin, Y. (2012). Panel estimation for urbanization, energy consumption, and CO2 emissions: A regional analysis in China. Energy Policy, 49, 488–498.

Zhang, X., Fan, Y., & Zhao, W. (2022). Electricity Consumption and Income Inequality: Evidence from Panel Data Analysis. Energy Economics, 108, 105922.

Zolfaghari, M., Kabiri, M., & Saadatmanesh, H. (2020). Impact of socio-economic infrastructure investments on income inequality in Iran. Journal of Policy Modeling, 42(5), 1146–1168.