The Influence of Green Economic Growth, Household Consumption Expenditure, Transportation, Green Investment, and Energy Subsidies on Energy Consumption Across 38 Provinces in Indonesia, 2022–2025
DOI:
https://doi.org/10.58737/jpled.v6i4.1729Keywords:
Green Economic Growth, Household Consumption Expenditure, Transportation, Green Investment, Energy Subsidies, Energy ConsumptionAbstract
This study aims to analyze (1) the impact of green economic growth, (2) household consumption expenditure, (3) transportation, (4) green investment, and (5) energy subsidies on energy consumption in Indonesia, as well as to identify differences in their impacts across provinces. This study employs a quantitative approach using panel data consisting of 38 provinces in Indonesia over the 2022–2025 period, resulting in 152 observations. Data analysis was conducted using the Fixed Effects Model (FEM) with province and period fixed effects. The results show that when all independent variables are considered simultaneously, there are differences in estimated values across provinces. West Java has the highest estimated value of 118.570271, while Highland Papua has the lowest estimated value of 3.715581. Partially, based on the direction of the coefficients, green economic growth has a positive but insignificant effect on energy consumption. Household consumption expenditure has a negative and insignificant effect. Transportation has a positive and significant effect on energy consumption. Green investment has a negative and insignificant effect, while energy subsidies have a negative and insignificant effect. Based on the regional estimates of each variable, West Java has the highest estimated value, whereas Highland Papua has the lowest. These findings indicate that interprovincial characteristics should be considered in formulating energy policies in Indonesia, particularly in the transportation sector, which is proven to have a positive and significant effect on energy consumption.
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