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Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis

Author

Listed:
  • Ujang Hendra Gunawan

    (Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia)

  • Nuraeni Kadir

    (Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia)

  • Abdul Rahman Kadir

    (Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia)

  • Muhammad Sobarsyah

    (Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia)

  • Sabbar Dahham Sabbar

    (Department of Economics, Faculty of Economics and Business, Hasanuddin University, Makassar 90245, Indonesia)

Abstract

Existing studies have primarily focused on factors influencing energy poverty (EP), with limited attention given to the specific role of renewable energy advancements (REA). This study addresses this gap by employing a moment quantile regression model to evaluate the energy poverty index system, exploring the impact of REA on EP. Data is sourced from a 30-province panel in Indonesia from 2003 to 2019. The study reveals that REA contributes to alleviating EP, particularly in regions with low climate vulnerability. Both linear and non-linear models indicate that the climate vulnerability index (CVI) moderates this relationship, with REA reducing EP in low CVI regions, but showing the opposite effect under high CVI conditions. This effect is geographically concentrated in western Indonesia, with no significant impact in central and eastern regions. These findings provide valuable insights for strategies aimed at reducing energy poverty and promoting sustainable energy growth.

Suggested Citation

  • Ujang Hendra Gunawan & Nuraeni Kadir & Abdul Rahman Kadir & Muhammad Sobarsyah & Sabbar Dahham Sabbar, 2024. "Regional Disparities in the Efficacy of Renewable Energy Development for Alleviating Energy Poverty in Indonesia: An In-depth Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 254-269, November.
    • Handle: RePEc:eco:journ2:2024-06-25
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    More about this item

    Keywords

    Renewable Energy; Energy Poverty; Climate Vulnerability; Indonesia;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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