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All Journal International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET)
Fedri Agriadi
Institut Teknologi PLN
Agriculture, Biological Sciences & Forestry Humanities Computer Science & IT Economics, Econometrics & Finance Education

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ECONOMIC GROWTH AND HOUSEHOLD ELECTRICITY CONSUMPTION: THE MEDIATING ROLE OF POPULATION DENSITY AND HOUSEHOLD CUSTOMERS IN JAVA Eri Prabowo; Fedri Agriadi
International Journal of Social Science, Educational, Economics, Agriculture Research and Technology (IJSET) Vol. 5 No. 10 (2026): SEPTEMBER
Publisher : RADJA PUBLIKA

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Abstract

Household electricity consumption is shaped by demographic and economic dynamics, yet these factors may operate through different mechanisms, particularly in highly urbanized regions. This study examines the effects of population density and economic growth on household electricity consumption in Java, Indonesia, with household electricity customers as a mediating variable. Panel data from six provinces covering 2020–2024 were analyzed using panel data regression with 30 observations. The Random Effect Model (REM) was selected for Model 1, while the Fixed Effect Model (FEM) was selected for Model 2, and mediation was tested using the Sobel test. The results show that population density has a positive and significant effect on household electricity consumption but does not significantly affect household customers. Economic growth has a positive and significant effect on household customers but does not have a significant direct effect on household electricity consumption. Household customers have a positive and significant effect on household electricity consumption and fully mediate the relationship between economic growth and electricity consumption. No significant mediation is found between population density and electricity consumption. These findings indicate that population density primarily increases electricity-use intensity, whereas economic growth influences household electricity consumption through the expansion of the household customer base.
Co-Authors Eri Prabowo