Proceedings of the International Conference on Transformations and Innovations in Management (ICTIM 2017)

Does Energy Subsidy Policy Affect Sustainable Energy Development?: Evidence From Indonesia Using Granger Causality Test on CO2 Emissions

Authors
Dede Supriatna Makbul, Yantao Wang, Janthima Rodkrajab, Satria Dijaya
Corresponding Author
Dede Supriatna Makbul
Available Online September 2017.
DOI
https://doi.org/10.2991/ictim-17.2017.9How to use a DOI?
Keywords
Energy subsidy policy, granger causality test, sustainable energy development
Abstract

This study was conducted to analyze the effect of energy subsidy on country's sustainable energy development by looking in depth at the statistical data on CO2 emissions in Indonesia. The method used in this study is Granger Causality Test and used series data from 1986-2014. Granger Causality Test showed that energy subsidy has weak influenced (significant at 10%) to CO2 emissions and statistically proves that energy subsidy is the reason to the change of CO2 emissions. While industrial energy consumption has strong influenced (significant at 1%) to CO2 emissions, and energy price has strong influenced (significant at 1%) to the change in industrial energy consumption. Based on the discussion, it clearly conduces to pro-growth, pro-job and pro-poor but not fully promote pro-environment. Therefore, we suggest that CO2 emissions can be reduced by the cost developing green energy technologies. Energy subsidy should improve its focus on allocating funds on research that seeking renewable energy, applying environmentally friendly technologies, in order to achieve sustainable energy development, and to protect the environment from environmental degradation caused by increasing CO2 emissions in Indonesia.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Transformations and Innovations in Management (ICTIM 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
September 2017
ISBN
978-94-6252-405-7
ISSN
2352-5428
DOI
https://doi.org/10.2991/ictim-17.2017.9How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Dede Supriatna Makbul
AU  - Yantao Wang
AU  - Janthima Rodkrajab
AU  - Satria Dijaya
PY  - 2017/09
DA  - 2017/09
TI  - Does Energy Subsidy Policy Affect Sustainable Energy Development?: Evidence From Indonesia Using Granger Causality Test on CO2 Emissions
BT  - Proceedings of the International Conference on Transformations and Innovations in Management (ICTIM 2017)
PB  - Atlantis Press
SP  - 112
EP  - 121
SN  - 2352-5428
UR  - https://doi.org/10.2991/ictim-17.2017.9
DO  - https://doi.org/10.2991/ictim-17.2017.9
ID  - Makbul2017/09
ER  -