Jurnal Perencanaan Pembangunan
Vol. 6 No. 2 (2022): August 2022

Impact of Urbanization on Energy Intensity in Indonesia: Spatial Analysis

Herry Irawan (Department of Economics, Faculty of Economics and Business, Universitas Indonesia)
Djoni Hartono (Researcher and Lecturer, Department of Economics, Faculty of Economics and Business, Universitas Indonesia)



Article Info

Publish Date
31 Aug 2022

Abstract

Urbanization is a phenomenon in developing countries that needs to be studied in depth because it has various impacts, including an increase in energy consumption. Energy consumption needs to be controlled to balance energy supply and demand in each province. In this study, energy intensity will be used to measure energy consumption, and regional elements are used to capture the diversity of characteristics in each province. The purpose of this study is to 1) Is there a spatial correlation in energy intensity in Indonesia; and 2) What is the spatial (direct, indirect, and total) impact of urbanization on energy intensity in the Indonesian region, Eastern Indonesia Region (KTI), and Western Indonesia Region (KBI). The research method used is a spatial analysis using Moran Test, Spatial Durbin Model, and advanced decomposition analysis on the spatial spillover effect. The result is a spatial correlation to the energy intensity that occurs in each province. Urbanization shows a significant negative impact on energy intensity on the direct effect on KTI and KBI and also on the indirect effect and the total effect in the territory of Indonesia and KBI.

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Journal Info

Abbrev

jpp

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Energy Environmental Science Social Sciences

Description

JPP will periodically present papers related to development planning and policy in Indonesia, linking academic and scientific knowledge to public policy. JPP takes a position as one of the bridging knowledge to policy tools. The subjects are each development processes, from the planning, ...