The Impact of Fossil Energy Subsidies on Social Cost in Indonesia

Authors

  • Hadi Sasana Diponegoro University
  • F. Salman
  • Suharnomo Suharnomo
  • S. B. M. Nugroho
  • A. G. Edy Yusuf

Abstract

Subsidies for energy have driven the consumption of fossil energy to increase sharply. The increased use of fossil energy will increase social costs and negatively affect the environment. This study investigated the impact of fossil energy subsidies on social costs in Indonesia. The analysis used was multiple regression using secondary data from the World Bank and Ministry of Finance of the Republic of Indonesia. The results of the study showed that energy subsidies and air pollution (CO2) in Indonesia have led to increased social costs. Meanwhile, the use of renewable energy has a negative effect on social costs in Indonesia.Keywords: Energy subsidy, air pollution (CO2), renewable energy, social costJEL Classifications: Q42, Q43

Downloads

Download data is not yet available.

Downloads

Published

2018-03-20

How to Cite

Sasana, H., Salman, F., Suharnomo, S., Nugroho, S. B. M., & Yusuf, A. G. E. (2018). The Impact of Fossil Energy Subsidies on Social Cost in Indonesia. International Journal of Energy Economics and Policy, 8(2), 168–173. Retrieved from https://econjournals.com/index.php/ijeep/article/view/6162

Issue

Vol. 8 No. 2 (2018)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.