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Analysis of Energy Intensity Decomposition in the Textile Industrial Sub Sector of Indonesia

Author

Listed:
  • Sally Salamah

    (Faculty of Economics and Business, University of Lampung, Indonesia,)

  • Wan Abbas Zakaria

    (Faculty of Economics and Business, University of Lampung, Indonesia,)

  • Toto Gunarto

    (Faculty of Economics and Business, University of Lampung, Indonesia,)

  • Lies Maria Hamzah

    (Faculty of Economics and Business, University of Lampung, Indonesia,)

  • Muhammad Said

    (Faculty of Economics and Business UIN Syarif Hidayatullah Jakarta, Indonesia)

Abstract

The purpose of this study was to analyze the energy intensity decomposition in the textile industry subsector of Indonesia at level 2 and 3 KBLI. This is because of its usefulness in measuring energy efficiency. However, energy decomposition has not been able to accurately reflect the efficiency that occurs in the industrial sector. Since the results gotten from the calculation of energy intensity contains components of structural factors, there is need for the analysis of the changes in the composition of output caused by activities or a combination of output and energy intensity components. Energy intensity approach and the Time Series technique through the use of log mean divisia index I method was used in this study to determine the effect of structural and intensity factors on changes in aggregate energy intensity in the textile industry sector in Indonesia. The results showed that the energy intensity of the textile industry between 2006 and 2014 experienced a downward trend, but the structural factors were more dominant than the intensity factor. Therefore, there is need for structural factors in energy intensity decomposition of the textile industry sector so as to be able to save energy.

Suggested Citation

  • Sally Salamah & Wan Abbas Zakaria & Toto Gunarto & Lies Maria Hamzah & Muhammad Said, 2019. "Analysis of Energy Intensity Decomposition in the Textile Industrial Sub Sector of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 1-10.
    • Handle: RePEc:eco:journ2:2019-03-1
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    References listed on IDEAS

    as
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    Cited by:

    1. Peggy Hariwan & Bambang Juanda & Sri Mulatsih & Himawan Hariyoga, 2021. "Analysis of Energy Efficiency on the Manufacturing Industry in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 28-36.
    2. Chengjun Liu & Jingwen Tu & Yong He, 2023. "Measurement of China's Human Development Index and Analysis of Its Influencing Factors from the Perspective of New Development Concept," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 213-268, June.
    3. Zhang, Xiaomei & Su, Bin & Yang, Jun & Cong, Jianhui, 2022. "Analysis of Shanxi Province's energy consumption and intensity using input-output framework (2002–2017)," Energy, Elsevier, vol. 250(C).

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    More about this item

    Keywords

    Energy Intensity; Structural Effect; Intensity Effect; Decomposition; Textile Industry; Indonesia;
    All these keywords.

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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