Perceptions and Determinants of SMEs Consumers' Behaviors for Electricity Saving: Evidence from Indonesia

Abstract

Consumer's behavior can affect volume and electricity demand profile. Therefore, knowing behavior of users is valuable to manage electricity usage, to design better energy policy and management. This study aims to analyse electricity users for manufacturing small and medium enterprises (SMEs) in Makassar, Indonesia to get information about perceptions and users' behaviors on energy consumption using statistical approach. A questionnaire for survey is firstly designed to obtain required data from respondents. Next, two regression models are proposed to examine determinants of usage behavior and habit of SMEs users towards electricity saving. Explanation variables in the models are user's perception, meteorological, economic, and production technology. Results shown the designed questionnaire is reliable. Perception on energy saving for SMEs' users is generally good enough. The perceptions of consumers are different based on the characteristics of demographic. Other results shown determinants of usage behaviour in SMEs towards electricity saving are user's perception, economic and production technology. Meanwhile determinant for habit of users is perception and production technology. Presented results can give more insight to government or power utility in relation to encourage energy efficiency for industrial sector in Indonesia.Keywords: Electricity saving, perception, consumers' behaviors, SMEs, IndonesiaJEL Classifications: Q40, Q41, Q48, L94DOI: https://doi.org/10.32479/ijeep.9055