Abstract
Non-renewable resources, which include natural resources, are now being much rare and are being depleted in the recent decades as these are not being replenished naturally. In Indonesia, there is a need to see and manage the factors that utilize the maximum amount of non-renewable energy in the state. Thus, our study investigates the factors that characterize for the increased use of non-renewable resources that include inflation, poverty, debts, etc. This research has gathered data over 28 years of time to get a time-series analysis. The independent variables are inflation, poverty, and debts of the nation. The dependent variable is non-renewable energy consumption and the control variables are population growth and GDP of Indonesia. For this purpose, we have used Autoregressive distributed time lag (ARDL) model and Augmented Dickey Fuller (ADF) technique along with unit root tests. Further, the co-integrating among the variables is also tested for observing the relationship of variables in the long-run. The results show that all the inflation, poverty, and debts have significantly being the culprits for increased non-renewable energy consumption in both short-run and long-run analysis. However, population growth has been insignificant in the long run. The research gives useful directions for the policy-makers and people as how to reduce the increased rate of debts, inflation and poverty.Keywords: non-renewable energy consumption, inflation, poverty, debts, ARDL, Indonesia.JEL Classifications: C32, E31, I32, G51, Q43DOI: https://doi.org/10.32479/ijeep.11889
Highlights
With each day passing, the demands for energy are increased immensely but the sources that are to satisfy the needs are scarce and limited and in amount
A unit increase in inflation will cause an increase of 35% on non-renewable energy consumption
Population growth has not been significant in impacting an increase in nonrenewable energy consumption in the long run
Summary
The demands for energy are increased immensely but the sources that are to satisfy the needs are scarce and limited and in amount. Sometimes they are not in range (Esen and Bayrak, 2017). An unequal distribution of energy resources is observed. These factors including others force many countries to access and import these resources under reliable and sustainable conditions in order to satisfy and meet their demands (Pereira et al, 2008). The depletion of the resources around the world causes great competition among the other countries (Zhu and Geng, 2013)
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