ENERGY CONSUMPTION AND ECONOMIC GROWTH BY INDUSTRIAL SECTOR AND HOUSEHOLD SECTOR IN INDONESIA

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Date
2016-08-10
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International Conference on Islamic Economics Management Accounting Business and Social Sciences (ICIEMABS)I, Fakultas Ekonomi dan Bisnis Universitas Padjajaran, STIE Ibnu Sina, APTISI
Abstract
This study aimed to investigate the relationship between energy consumption and economic growth by industrial sector and household sector in Indonesia. The result of Granger Causality test and Ordinary Least Squares (OLS) showed that there are relationship between economic growth and energy consumption in industrial sector and between economic growth and energy consumption in household sector. The results also showed that the economic growth has significant effect on energy consumption in the industrial sector, and showed that economic growth has significant effect on energy consumption in the household sector, vice versa. This finding provides an important policy implications for decision-makers in reviewing the policy, particularly policy in determining the price of fuel and electricity in order to achieve the purpose of development.
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Keywords
Economic growth, energy consumption by industrial sector, energy consumption by household sector, Granger Causality, Ordinary Least Squares (OLS)
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