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The Dynamic Role of Fiscal and Monetary Policies on Energy Efficiency in Indonesia

Author

Listed:
  • Aliasuddin Aliasuddin

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

  • Rustam Effendi

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

  • Hazman Samsudin

    (Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu, Malaysia)

  • Nanda Rahmi

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia; Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu, Malaysia)

  • Kamal Fachrurrozi

    (Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia)

Abstract

This study analyzes the dynamic influence of monetary and fiscal policies on energy efficiency in Indonesia. Quarterly data from the first quarter of 2000 to the fourth quarter of 2023 with a sample size of 96 quarters and the ARDL model are used in this study. The results of the short-term dynamic study show that monetary and fiscal policies significantly affect energy efficiency in Indonesia. However, dynamic economic growth does not affect energy efficiency. Furthermore, there is no difference in the influence of dynamic monetary and fiscal policies on energy efficiency in Indonesia. The monetary authority and the government of Indonesia must use monetary and fiscal policies to improve efficiency in Indonesia. Energy efficiency is very important not only in the use of natural resources but also in environmental damage due to inefficient energy use.

Suggested Citation

  • Aliasuddin Aliasuddin & Rustam Effendi & Hazman Samsudin & Nanda Rahmi & Kamal Fachrurrozi, 2024. "The Dynamic Role of Fiscal and Monetary Policies on Energy Efficiency in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 420-425, November.
    • Handle: RePEc:eco:journ2:2024-06-40
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    References listed on IDEAS

    as
    1. Jun Liu & Yu Qian & Yuanjun Yang & Zhidan Yang, 2022. "Can Artificial Intelligence Improve the Energy Efficiency of Manufacturing Companies? Evidence from China," IJERPH, MDPI, vol. 19(4), pages 1-18, February.
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    4. Erahman, Qodri Febrilian & Purwanto, Widodo Wahyu & Sudibandriyo, Mahmud & Hidayatno, Akhmad, 2016. "An assessment of Indonesia's energy security index and comparison with seventy countries," Energy, Elsevier, vol. 111(C), pages 364-376.
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    More about this item

    Keywords

    Energy Efficiency; Fiscal Policy; Monetary Policy; Indonesia;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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