Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Econometric Modeling Of The Factors Determining The Consumption Of Natural Gas By Households In Indonesia
Aboyitungiye Jean Baptiste, Suryanto Suryanto

Building: Parallel Session 3
Room: F
Date: 2020-10-27 04:15 PM – 05:30 PM
Last modified: 2020-10-22


One of the objectives of the energy transition is to redefine our current mode of production and consumption by relying on a new model: sustainable, concerned with respect for the environment, economics and avoiding the exhaustion of natural resources. This study, using an empirical study seek to estimate the response of natural gas consumption by households to variations in its elasticity, is a contribution to the on-going debate on natural gas consumption by households over whether what determines its use, although Indonesia is at the top of among users of this energy source in the World; attention has been paid to the features of the consumption and population. Therefore, this study involves past independent variables throughout 1970-2018, which explain the consumption of natural gas by households in the future. The results indicate that there is an imbalance in the use of this energy source due to income inequality thus a short-run equilibrium relationship. The study finds also evidence of unidirectional causality between the gas production and population as well as bidirectional causality between Gross National Income and population to the consumption of natural gas. The ultimate of the study is the need for meeting the global demand in the coming decades either by changing the current energy system consumption, particularly as a result of population pressure.