Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia

<p class="Abstract">This study aims to estimate the pattern of household demand for energy consumption such as electricity, water and fuel. The data used in this study is the publication of the Indonesia Family Life Survey (IFLS). To obtain comprehensive estimation results, this stud...

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Autores principales:	Mohtar Rasyid, Anita Kristina
Formato:	article
Lenguaje:	EN
Publicado:	EconJournals 2021
Materias:	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
Acceso en línea:	https://doaj.org/article/270b060af1364e7eb107049da5ce710d
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spelling	oai:doaj.org-article:270b060af1364e7eb107049da5ce710d2021-11-12T07:27:31ZEstimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia2146-4553https://doaj.org/article/270b060af1364e7eb107049da5ce710d2021-11-01T00:00:00Zhttps://econjournals.com/index.php/ijeep/article/view/11714https://doaj.org/toc/2146-4553<p class="Abstract">This study aims to estimate the pattern of household demand for energy consumption such as electricity, water and fuel. The data used in this study is the publication of the Indonesia Family Life Survey (IFLS). To obtain comprehensive estimation results, this study uses the Quadratic Almost Ideal Demand System (QUAIDS) approach which is currently the standard in household demand estimation systems. The unit of observation used in this paper is more than three thousand households representing 13 provinces in Indonesia. The results show that the largest household energy consumption expenditure is electricity consumption followed by fuel and water. However, unlike the case of other commodities, the elasticity of spending on electricity is negative. Thus, an increase in household income will shift spending from electricity to consumption of other goods such as fuel, water and others. Meanwhile, the price elasticity for all energy commodities is inelastic. The increase in energy consumption commodity prices did not change demand much. This means that households are still very dependent on the supply of energy goods produced by the government. Therefore, appropriate policies are needed in determining the basic electricity tariff, fuel prices and clean water supply so that basic household needs can be fulfilled. </p><p class="Keywords"><strong>Keywords:</strong> Energy Consumption, System Demand, Household Expenditure, QUAIDS</p><p class="Keywords"><strong>JEL Classifications:</strong> D12, Q41, R20</p><p class="Keywords">DOI: <a href="https://doi.org/10.32479/ijeep.11714">https://doi.org/10.32479/ijeep.11714</a></p>Mohtar RasyidAnita KristinaEconJournalsarticleEnvironmental sciencesGE1-350Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENInternational Journal of Energy Economics and Policy, Vol 11, Iss 6, Pp 289-295 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
spellingShingle	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5 Mohtar Rasyid Anita Kristina Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
description	<p class="Abstract">This study aims to estimate the pattern of household demand for energy consumption such as electricity, water and fuel. The data used in this study is the publication of the Indonesia Family Life Survey (IFLS). To obtain comprehensive estimation results, this study uses the Quadratic Almost Ideal Demand System (QUAIDS) approach which is currently the standard in household demand estimation systems. The unit of observation used in this paper is more than three thousand households representing 13 provinces in Indonesia. The results show that the largest household energy consumption expenditure is electricity consumption followed by fuel and water. However, unlike the case of other commodities, the elasticity of spending on electricity is negative. Thus, an increase in household income will shift spending from electricity to consumption of other goods such as fuel, water and others. Meanwhile, the price elasticity for all energy commodities is inelastic. The increase in energy consumption commodity prices did not change demand much. This means that households are still very dependent on the supply of energy goods produced by the government. Therefore, appropriate policies are needed in determining the basic electricity tariff, fuel prices and clean water supply so that basic household needs can be fulfilled. </p><p class="Keywords"><strong>Keywords:</strong> Energy Consumption, System Demand, Household Expenditure, QUAIDS</p><p class="Keywords"><strong>JEL Classifications:</strong> D12, Q41, R20</p><p class="Keywords">DOI: <a href="https://doi.org/10.32479/ijeep.11714">https://doi.org/10.32479/ijeep.11714</a></p>
format	article
author	Mohtar Rasyid Anita Kristina
author_facet	Mohtar Rasyid Anita Kristina
author_sort	Mohtar Rasyid
title	Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
title_short	Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
title_full	Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
title_fullStr	Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
title_full_unstemmed	Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia
title_sort	estimation of demand system for household energy consumption: empirical evidence from indonesia
publisher	EconJournals
publishDate	2021
url	https://doaj.org/article/270b060af1364e7eb107049da5ce710d
work_keys_str_mv	AT mohtarrasyid estimationofdemandsystemforhouseholdenergyconsumptionempiricalevidencefromindonesia AT anitakristina estimationofdemandsystemforhouseholdenergyconsumptionempiricalevidencefromindonesia
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Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia

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