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Department of Agricultural, Environmental, and Development Economics


Sources of Change in the Demand for Energy by Indonesian Households: 1980-1999

(with Mark M. Pitt)

This paper describes the energy transition in Indonesia and examines the determinants of energy demand, by fuel. The key innovation of this paper is the documentation of how these relationships have evolved over time. We find that parameter change, defined as changes in the magnitude of the effect of parameters (e.g., income, demographic characteristics) on consumer demand, explains the large majority of changes in energy demand. Demographic change is found to play an important role in accelerating the energy transition, with parameter change magnifying this effect even further. Our findings point to the importance of utilizing time-series data in studying both the characteristics and determinants of energy transition in developing countries.
Publication type: 
Working paper