Praptiningsih, Maria and Tanoto, Yusak (2013) INPUT-OUTPUT ANALYSIS: AN APPLICATION OF ELECTRICITY DEMAND IN INDONESIA. Technical Report. Institut of Research and Community Outreach.
Abstract
Energy policy planning is the most important part in macroenomonic analysis. It is very urgent to investigate and analyze how effective the energy planning is. Moreover, as part of energy planning, electricity also becomes the major resources that should be well-analyzed in order to achieve the stability of national economy system. Therefore, it was very important for electric utility to determine dominant sectors which have more impacts on electricity consumption in national economy system. The research consists of three objectives: determining the input-output table of electricity demand based on the input-output table of national economy; measuring the relevancy of electricity demand in various sectors through the electricity consumption chains; and analyzing the dominant sectors imposing great impacts on electricity demand through the electricity demand multiplier . The study utilized the input output model which is developed by Leontief which is then derived into matrices, inverses, coefficients, and multipliers in order to obtain contribution factors among all sectors in national economy system. The research stages initiated with gathering relevant data during 2008. Model development and variable testing was carried out subsequently, along with dominant contributor sector establishment. As the case study, four sectors are selected in order to obtain and analyze their respective EDM towards the electricity demand in Indonesian industrial sector. It is found that the tobacco industry imposes impacts on the electricity demand of the entire industry in Indonesia according to their EDM although the electricity consumption of this sector is not that much. However, the production of this sector requires large scale inputs from other sectors. The products from these sectors consumed more electricity such as paper-paper product-cardboard industry (sector 38), chemicals industry (sector 40) and rubber and plastic industry (sector 42), are absorbed as its inputs by the tobacco industry (sector 34). That leads to the biggest EDM for the tobacco industry, i.e. 1 as compared to other sector. It can be implied that although a certain industrial sector may not consumed large electricity, it can possibly hold the largest EDM since it consumes other industrial sector’s output, which is in fact require more electricity supply. The dominant sectors with high EDM as shown in EDM able should be paid more attention to in the development and establishment of electrical policy.
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