THE IMPACT OF GEOTHERMAL ENERGY SECTOR DEVELOPMENT ON ELECTRICITY SECTOR IN INDONESIA ECONOMY
Keywords:
CGE, Electricity, CO2 Emission, Fossil Energy, Geothermal, Growth
Abstract
Energy is one of the most important inputs that supports Indonesia’s economy. The government utilises coal and oil as the main sources for power plants energy mix. However, the utilization of fossil fuel energy has been proven to pose negative impacts on the environment such as, increasing carbon dioxide emission which leads to global warming. This study analyses investment policy on increasing electricity production of geothermal power plants as well as substitution of fossil energy to geothermal energy using Computable General Equilibrium (CGE) Model and Indonesia’s data of Social Accounting Matrix 2008. The result shows that when investment on the substitution of energy from fossil to renewable energy takes place, economic growth will increase and carbon dioxide emission will reduce significantly.Downloads
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References
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Aydin, L. (2010). The Economic and Environmental Impacts of Constructing Hydro Power Plants in Turkey: A Dynamic CGE Analysis (2004-2020). Natural Resources, (1), 69-79.
Barbier, E. (2002). Geothermal energy technology and current status: an overview. Renewable and Sustainable Energy Reviews 6, 3-65.
Borojo, D. G. (2012). The Economy Wide Impact of Investment on Infrastructure for Electricity in Ethiopia: A Recursive Dynamic Computable General Equilibrium Approach. A Thesis Submitted to The School of Economics. Addis Ababa University.
Barron, J. M., et al. (2006). Understanding macroeconomic theory. New York. USA: Taylor & Francis.
Bravi, M., & Basosi, R. (2014). Environmental impact of electricity from selected geothermal power plants in Italy. Journal of Cleaner Production 66, 301-308.
Darma, S., et al. (2010). Geothermal Energy Update: Geothermal Energy Development and Utilization in Indonesia. Proceedings World Geothermal Congress, Bali, Indonesia.
Dissou, Y. & Didic, S. (2011). Does Electricity Supply Strategy Matter? Shortage and Investment: Reflections based on CGE Analysis. Research Project on the Distributive Impacts of Growth
Strategy. Department of Economics, University of Ottawa.
Engida, E. (2011). Does Electricity Supply Strategy Matter?Shortage and Investment: Reflections based on CGE Analysis. EDRI Working Paper 006.
Fedderke, J. & Garlick, R. (2008). Infrastructure Development and Economic Growth in South Africa: A Review of the Accumulated Evidence. Policy Paper Number 12.
Girianna, M., et al. (2013). New Development of Geothermal (Renewable) Energy in Indonesia. Indonesian Regional Science Association Conference 2013.
Halkos, G. & Tzeremes, N. (2013). The effect of electricity consumption from renewable sources on countries’ economic growth levels: Evidence from advanced, emerging and developing economies. MPRA Paper No. 50630. Retrieved from http://mpra.ub.uni-muenchen.de/50630/
Hartono, D. & Resosudarmo, B, P. (1998). Eksistensi Matriks Pengganda dan Dekomposisi Matriks Pengganda Pyatt dan Round dari Sistem Neraca Sosial Ekonomi. Ekonomi dan Keuangan Indonesia. Vol XLVI, No. 4, 73-496.
Hasan, M. H., et al. (2012). A review on the pattern of electricity generation and emission in Indonesia 1987 to 2009. Renewable and Sustaibale Energy Reviews 16, 3206 – 3219.
International Energy Agency. (2011). CO2 Emissions From Fuel Combustion Highlights 2011. International Energy Agency of the OECD, Paris.
International Energy Agency. (2007). Energy Policy Review of Indonesia, IEA: Paris.
Isdinarmiati, T. (2011). Kenaikan Tarif Dasar Listrik dan Respon Kebijakan Untuk Meminimisasi Dampak Negatif Terhadap Perekonomian. Thesis, Post Graduated Program, Universitas
Indonesia, Jakarta.
Kementrian Energi dan Sumber Daya Mineral. (2014). Handbook of Energy and Economics Statistic of Indonesia.
Kementrian Energi dan Sumber Daya Mineral. (2009). Handbook of Energy and Economics Statistic of Indonesia.
Kose, R. (2007). Geothermal Energy Potential for Power Generation in Turkey: A Case Study in Simav, Kutahya. Renewable and Sustainable Energy Reviews 11, 497 -511.
Krozer, Y. (2011). Cost and Benefit of Renewable Energy in Europe. World Renewable Energy Congress, Swedia.
Lewis, J. D. (1991). A Computable General Equilibrium (CGE) Model of Indonesia. Development Discussion Paper No. 378. Harvard Institute for International Development, Harvard
University.
Lu, C., et al. (2009). A CGE analysis to study the impacts on economic growth and carbon dioxide emissions: A case of Shaanxi Province in western China. Energy 35, 4319-4327.
Mankiw, N. G. (2007). Brief Principles of Macroeconomics (5th ed). Cengage Learning, Inc.
Moreno, B., et al. (2012). The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms. Energy 48, 307-313.
Mujiyanto, S. & Tiess, T. (2013). Secure energy supply in 2025 : Indonesia’s need for an energy policy strategy. Energy Policy 61, 31-41.
Nikensari, S. I. (2001). Pengaruh Perubahan Kebijakan Harga Energi Terhadap Produk Domestik Bruto (PDB) Sektor Industri di Indonesia: Suatu Model Analisa Keseimbangan Umum. Tesis,
Program Pascasarjana Universitas Indonesia, Jakarta.
Ohler, A. & Fetters, I. (2014). The Causal Relationship Between Reneable Electricity Generation and GDP Growth: A Study of Energy Sources. Energy Economics 43, 125-139.
Ortega, M., et al. (2013). Assessing the benefits and costs of renewable electricity: The Spanish case. Renewable and Sustainable Energy Reviews 27, 294- 304.
PLN. (2013). Rencana Usaha Penyediaan Tenaga Listrik PT PLN (persero) 2013-2022, Retrived from www.pln.co.id/.../RUPTL%202013-2022.pdf
PLN. (2008). Statistik PLN 2008. Retrieved from http://www.pln.co.id/stat/
PLN. (2011). Statistik PLN 2011. Retrieved from http://www.pln.co.id/stat/
Pyatt, G. & Round, R. (1979). Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework. Economic Journal 89: 850–873.
Resosudarmo, B. P., et al. (2009). Regional Economic Modelling for Indonesia of the IRSAINDONESIA5. Working Papers in Trade and Development. The Arndt-Corden Division of Economics, ANU College of Asia and the Pacific. Retrieved from http://rspas.anu.edu.au/economics/publications.php
Rose, A., et al. (1996). Global Warming Policy, Energy, and The Chinese Economy. Resource and Energy Economics 18, 31-63.
Sadoulet, E. & de Janvry, A. (1995). Quantitative Development Policy Analysis. Johns Hopkins University Press, Baltimore. Chapter 10, p: 273-301.
Stern, D. I. (2010). The Role of Energy in Economic Growth. CCEP Working paper 3.10.
Sugiyono, A. (2009). Dampak Kebijakan Energi Terhadap Perekonomian di Indonesia: Model Komputasi Keseimbangan Umum. Kolokium Nasional Program Doktor.
Zou, G. L. (2012). The long-term relationships among China’s energy consumption sources and adjustments to its renewable energy policy. Energy Policy, 456-467.
Published
2016-12-29
How to Cite
Aissa, N., & Hartono, D. (2016). THE IMPACT OF GEOTHERMAL ENERGY SECTOR DEVELOPMENT ON ELECTRICITY SECTOR IN INDONESIA ECONOMY. Buletin Ekonomi Moneter Dan Perbankan, 19(2), 153-176. https://doi.org/10.21098/bemp.v19i2.628
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
