Abstract: Escalating oil prices and the need to control carbon emissions sound the alarm for
Indonesia to reduce or be more efficient in its energy use. To create an incentive for
society to be more energy efficient, the government needs to reduce the current energy
subsidy, which, in any case, has imposed a tremendous fiscal burden on the country. This
paper aims to analyse the impact on the economy of energy policies aiming to reduce and
to improve the efficiency of energy use, particularly on the income of various household
groups. This paper will, first, construct a Social Accounting Matrix for Indonesia with
detailed energy sectors and, second, utilise various multiplier analyses to observe and
understand the impact of these energy policies.
Keywords: Energy economics, government policy, pricing policy, social accounting
matrix
by Djoni Hartono 1 and Budy Resosudarmo 2
1. University of Indonesia)
2. Australian National University)
Padjadjaran University, Department of Economics; http://www.lp3e-unpad.org
via EquitablePolicy.org www.equitablepolicy.org
Working Paper in Economics and Development Studies No. 200702; January, 2007
Center for Economics and Development Studies,
Jalan Cimandiri no. 6, Bandung, Indonesia; Phone/Fax: +62-22-4204510
http://www.equitablepolicy.org/wpaper/200702.pdf
http://envirovaluation.org/htsrv/trackback.php/4718
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