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The Economy-wide Impact of Controlling Energy Consumption in Indonesia: An Analysis Using a Social Accounting Matrix Framework

Author

Listed:
  • Djoni Hartono

    (Department of Economics, University of Indonesia)

  • Budy P. Resosudarmo

    (Australian National University)

Abstract

Escalating oil prices and the need to control carbon emissions sound the alarm for Indonesia to reduce or be more efficient in its energy use. To create an incentive for society to be more energy efficient, the government needs to reduce the current energy subsidy, which, in any case, has imposed a tremendous fiscal burden on the country. This paper aims to analyse the impact on the economy of energy policies aiming to reduce and to improve the efficiency of energy use, particularly on the income of various household groups. This paper will, first, construct a Social Accounting Matrix for Indonesia with detailed energy sectors and, second, utilise various multiplier analyses to observe and understand the impact of these energy policies.

Suggested Citation

  • Djoni Hartono & Budy P. Resosudarmo, 2007. "The Economy-wide Impact of Controlling Energy Consumption in Indonesia: An Analysis Using a Social Accounting Matrix Framework," Working Papers in Economics and Development Studies (WoPEDS) 200702, Department of Economics, Padjadjaran University, revised Jan 2007.
    • Handle: RePEc:unp:wpaper:200702
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    Cited by:

    1. Lilia Endriana & Djoni Hartono & Tony Irawan, 2016. "Green economy priority sectors in Indonesia: a SAM approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 115-135, January.
    2. Effendi, Yuventus & Resosudarmo, Budy, 2020. "Development of Renewable Energy in ASEAN Countries: Socio-economic and Environmental Impacts," Conference papers 333229, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    4. Mbanda, Vandudzai & Bonga-Bonga, Lumengo, 2018. "Impacts of Public Infrastructure Investment in South Africa: A SAM and CGE-Based Analysis of the Public Economic Sector," MPRA Paper 90613, University Library of Munich, Germany.
    5. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1099-1127, August.
    6. Hasan, M.H. & Muzammil, W.K. & Mahlia, T.M.I. & Jannifar, A. & Hasanuddin, I., 2012. "A review on the pattern of electricity generation and emission in Indonesia from 1987 to 2009," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 3206-3219.
    7. Gronau, Steven & Winter, Etti, 2018. "Social Accounting Matrix: A user manual for village economies," Hannover Economic Papers (HEP) dp-636, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    8. Yuventus Effendi & Budy P. Resosudarmo, 2022. "Development of renewable electricity in ASEAN countries: socio-economic and environmental impacts," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 247-266, February.
    9. Fahman Fathurrahman & Bora Kat & Uğur Soytaṣ, 2017. "Simulating Indonesian fuel subsidy reform: a social accounting matrix analysis," Annals of Operations Research, Springer, vol. 255(1), pages 591-615, August.
    10. Budy P Resosudarmo & Ariana Alisjahbana & Ditya Agung Nurdianto, 2010. "Energy Security in Indonesia," Departmental Working Papers 2010-08, The Australian National University, Arndt-Corden Department of Economics.
    11. Akkemik, K. Ali, 2011. "Potential impacts of electricity price changes on price formation in the economy: a social accounting matrix price modeling analysis for Turkey," Energy Policy, Elsevier, vol. 39(2), pages 854-864, February.
    12. Andrzej Jezierski & Cezary Mańkowski & Rafał Śpiewak, 2021. "Energy Savings Analysis in Logistics of a Wind Farm Repowering Process: A Case Study," Energies, MDPI, vol. 14(17), pages 1-23, September.
    13. Yuventus Effendi & Budy Resosudarmo, 2022. "Construction Of An East Asia Inter-regional Social Accounting Matrix: A Manual," Working Papers in Economics and Development Studies (WoPEDS) 202202, Department of Economics, Padjadjaran University, revised Oct 2022.
    14. Mohd Haizam Mohd Saudi & Obsatar Sinaga & Djoko Roespinoedji & Erlane K. Ghani, 2019. "The Impact of Technological Innovation on Energy Intensity: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 11-17.
    15. Duarte, Rosa & Langarita, Raquel & Sánchez-Chóliz, Julio, 2017. "The electricity industry in Spain: A structural analysis using a disaggregated input-output model," Energy, Elsevier, vol. 141(C), pages 2640-2651.
    16. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2016. "The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia," Ecological Economics, Elsevier, vol. 130(C), pages 25-36.
    17. Chapa, Joana & Ortega, Araceli, 2017. "Identifying the main emitters of carbon dioxide in Mexico: a multi-sectoral study," LSE Research Online Documents on Economics 123241, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Social Accounting Matrix; Energy; Indonesia;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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