Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
In 2007, Indonesia launched a 3 kg Liquified Petroleum Gas (LPG) cylinder for poor households, and micro-enterprises were started on Java island to reduce the burden of fuel subsidies. In its implementation, the subsidized LPG may also be used by non-target households, which has implications for the...
Guardado en:
Autores principales: | , |
---|---|
Formato: | article |
Lenguaje: | EN |
Publicado: |
Universitas Muhammadiyah Yogyakarta
2021
|
Materias: | |
Acceso en línea: | https://doaj.org/article/267937f5afeb4d119a102f4eba0dbc0e |
Etiquetas: |
Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
|
Sumario: | In 2007, Indonesia launched a 3 kg Liquified Petroleum Gas (LPG) cylinder for poor households, and micro-enterprises were started on Java island to reduce the burden of fuel subsidies. In its implementation, the subsidized LPG may also be used by non-target households, which has implications for the government’s fiscal burden. To avoid this, it is necessary to understand household behavior towards non-subsidized LPG choices. Household income and fuel availability determine the choice of household cooking fuel types. However, existing studies have not seen the relationship between subsidized and non-subsidized LPG as a household cooking fuel. Using rich data from the March 2018 National Socio-Economic Survey (Susenas) and the Ministry of Energy and Mineral Resources (KESDM) information, this study examined the relationship between income, subsidized LPG quota as a representation of the availability of subsidized fuel, and non-subsidized LPG choices as household cooking fuel in Java in 2018. The Multinomial Logit model's estimation results found that an increase in income and a decrease in subsidized LPG quotas were correlated with an increase in the opportunity to choose non-subsidized LPG as household cooking fuel in Java in 2018. Furthermore, this study revealed that the largest subsidized LPG users were non-poor households. |
---|