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...

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Autores principales:	Restu Lestarianingsih, Vid Adrison
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	fuel subsidy policy household behavior cooking fuel choice fuel supply Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/267937f5afeb4d119a102f4eba0dbc0e
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spelling	oai:doaj.org-article:267937f5afeb4d119a102f4eba0dbc0e2021-12-02T16:56:26ZFuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy1411-99002541-550610.18196/jesp.v22i1.9757https://doaj.org/article/267937f5afeb4d119a102f4eba0dbc0e2021-04-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/9757https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506In 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.Restu LestarianingsihVid AdrisonUniversitas Muhammadiyah Yogyakartaarticlefuel subsidy policyhousehold behaviorcooking fuel choicefuel supplyEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 22, Iss 1, Pp 21-36 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	fuel subsidy policy household behavior cooking fuel choice fuel supply Economic theory. Demography HB1-3840
spellingShingle	fuel subsidy policy household behavior cooking fuel choice fuel supply Economic theory. Demography HB1-3840 Restu Lestarianingsih Vid Adrison Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
description	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.
format	article
author	Restu Lestarianingsih Vid Adrison
author_facet	Restu Lestarianingsih Vid Adrison
author_sort	Restu Lestarianingsih
title	Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
title_short	Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
title_full	Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
title_fullStr	Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
title_full_unstemmed	Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
title_sort	fuel availability and java households cooking fuel choices: evidence from indonesia’s lpg subsidy policy
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/267937f5afeb4d119a102f4eba0dbc0e
work_keys_str_mv	AT restulestarianingsih fuelavailabilityandjavahouseholdscookingfuelchoicesevidencefromindonesiaslpgsubsidypolicy AT vidadrison fuelavailabilityandjavahouseholdscookingfuelchoicesevidencefromindonesiaslpgsubsidypolicy
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Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy

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