Accelerating the Economic Recovery in Indonesia Post Covid-19: Justice in the Energy Transition

2020 ◽  
Vol 1 (2) ◽  
pp. 140-148
Author(s):  
Theresia Betty Sumarno ◽  
Andang Bachtiar ◽  
Artody Nugroho Jati

Indonesia is known as the largest economy in South East Asia and as one of the emerging lower-middle-income countries. Before the pandemic Covid-19, Indonesia forecasted its GDP growth to increase to 5.5% in 2020. However, this never happened following the pandemic it decreased to 2.97% in the first quarter of 2020. This paper focuses on the renewable energy role in accelerating the economic recovery in Indonesia by emphasising the role of justice in the transition process. We conduct systematic reviews from different sources, both primary and secondary resources. We qualitatively analyse the energy regulation and energy road map in Indonesia as well as some academic research articles. Indonesia has developed its general energy plan related to the energy mix demand and supply, which includes a long-term plan on developing renewable energy sources and reducing the use of fossil fuels. As the fourth most populated country in the world, Indonesia still focusses on cheap energy supply and energy access to fulfil the energy demand. Therefore the transition process in Indonesia is considered slow compared to the OECD countries. There is a significant role of energy in economic growth, both energy consumption and energy resources. Until now, fossil fuels have dominated the Indonesian energy supply and demand. This paper highlights the role of renewable energy in the economic development of the country. This paper suggests that the pandemic has highlighted the energy transition movement in Indonesia. The Covid-19 has driven more research on the role of renewable energy project to the economic development and demonstrate that a transition to a low-carbon economy could contribute to the economic recovery in a justice way in many sectors. Renewable energy development contributes directly to human resources development, and this development also contribute to health sector improvement. Finally, this renewable energy development could accelerate the economic recovery in Indonesia and reach 5.2 to 5.6% in 2021.

2021 ◽  
Vol 4 (2) ◽  
pp. 239-254
Author(s):  
Hanan Nugroho ◽  
Dedi Rustandi ◽  
Nur Laila Widyastuti

Indonesia’s energy face a situation of giddiness in deciding a transition that requires a much larger use of renewable energy, as the country is basically a fossil fuels one but in the other side it is demanded to contribute a bigger role in efforts to mitigate global climate change. Development of Indonesia's energy-environment policies, particularly on renewable energy is highlighted. International agreements on global climate change and Indonesia's participation are described. Foundations of the successful renewable energy development are emphasized. It recommends publishing a renewable energy law, establish regulation regarding renewable energy pricing, develop a carbon pricing system, establish organizational unit regarding energy-climate change, develop renewable energy technology, improve data quality dan grid intrconnection, implement energy conservation, encourage development of REBID and REBED.


Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3765
Author(s):  
Jarosław Brodny ◽  
Magdalena Tutak ◽  
Peter Bindzár

The global economic development is, to a great extent, dependent on access to large amounts of cheap energy sources. The growing social awareness of ecology and the enormous damage to the Earth’s ecosystem due to the production of energy from conventional sources have forced fundamental changes in the energy sector. Renewable energy is considered to be an opportunity for such changes. The current state of the art allows such changes to be made without restricting economic development. Therefore, activities related to the energy transition are being taken all over the world. The European Union has definitely managed to achieve the most tangible effects in this regard. This article presents the findings of the research aimed at presenting the current state of renewable energy in the European Union and analyzing the changes reported in this sector in the last decade. The research was carried out using a selected set of 11 indicators characterizing renewable energy in individual countries. These indicators were selected on the basis of literature review and own studies of the state of renewable energy and its development prospects. Based on these indicators, changes in the energy structure of individual European Union countries between 2008–2018 were determined. The study is divided into two main stages. The principal components analysis (PCA) was used for the first analysis. In turn, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) was adopted to assess the level of renewable energy development in the European Union countries. Both these methods and the extended statistical analysis were applied to determine the state of renewable energy development in the European Union countries in the studied period and to divide the Member States into classes with different levels of development. The results of the study showed that the EU countries are characterized by significant differences in the development of RES during the period in question. The unquestionable leaders in this respect are Sweden, Austria, Finland, and Latvia. Based on the findings, it is possible to evaluate the effects of activities related to renewable energy development and to prepare assumptions for future activities. Additionally, both the research and its findings broaden the knowledge of the directions of renewable energy development in individual European Union countries. This is particularly important in the context of changes related to the need to reduce harmful substance emissions and the implementation of the European Green Deal idea.


2021 ◽  
Author(s):  
Haifa Saadaoui

Abstract This study focuses on the role of institutional factors as well as financial development in renewable energy transition in Middle East and North Africa (MENA) region over the period 1990-2018 using the ARDL PMG method. The investigation of long-run and short-run analysis confirms that institutional and political factors play a key role in promoting the transition to renewable energy, and shows that improving these factors can lead to decarbonization of the energy sector in the long run. Another important finding is that global financial development does not have a significant effect on the transition process in the long run, implying that the whole financial system needs a fundamental structural change to accelerate the substitution between polluting and clean energies. However, in the short term, the impact appears to be negative and significant, highlighting the inadequacy of financial institutions and financial markets in promoting the region’s sustainable path. Moreover, income drives the transition to renewable energy in both short and long term. The causality results show that both financial development and institutional quality lead to renewable energy transition, while there is a bidirectional link between income and renewable energy.This study can provide a very useful recommendation to promote a clean transition in the MENA region.


2021 ◽  
Vol 9 ◽  
Author(s):  
Wei Liu ◽  
Wenyu Fan ◽  
Yu Hong ◽  
Chanting Chen

The problem of unbalanced energy development in China still exists. How to adjust the energy structure is the key to high-quality economic development in China. This paper analyses the impact of regional energy development levels on high-quality economic development in China from 2016 to 2017, with the global ML methodology and structural equation model. Firstly, from two aspects of environmental and technological factors, the Global Malmquist-Luenberger (GML) production function is used to measure the environmental endowment index of regional energy development in China. Secondly, the evaluation system of China’s energy development is established. The structural equation model is used to measure and evaluate the degree of China’s regional energy development. Combined with the environmental endowment index of regional energy development, the gap between the proportion of regional renewable energy and the optimal energy structure is analyzed. Thirdly, this paper explores the supporting effect of different energy development levels on high-quality economic development. It is concluded that the environmental endowment index of energy development varies among different regions in China, most of which are still underdeveloped, but a few of which have redundant technical elements of renewable energy development. China’s regional energy development model is still dominated by fossil fuel energy, and the proportion of renewable energy driving economic growth is relatively low. Renewable energy can effectively replace the use of fossil fuel energy and have a higher impact on high-quality economic development. Finally, on the basis of the above study, the paper puts forward policy suggestions for Chinese governments to adjust energy structure and promote high-quality economic development.


Author(s):  
Elizabeth Brown Doris ◽  
Sarah Busche ◽  
Stephen Hockett ◽  
Joyce McLaren Loring

State policies can support renewable energy development by driving markets, providing certainty in the investment market, and incorporating the external benefits of the technologies into cost/benefit calculations. Using statistical analyses and policy design best practices, this paper quantifies the impact of state-level policies on renewable energy development in order to better understand the role of policy on development and inform policy makers on the policy mechanisms that provide maximum benefit. The results include the identification of connections between state policies and renewable energy development, as well as a discussion placing state policy efforts in context with other factors that influence the development of renewable energy (e.g. federal policy, resource availability, technology cost, public acceptance).


2012 ◽  
Vol 524-527 ◽  
pp. 2940-2943
Author(s):  
Kai Zhao

The proper role of government in economic development is one of the biggest single issues confronting China today. The paper attempts to trace and describe the role played by the government in renewable energy development. The goals focused in the article are two ones. The first one is to explore the theoretical basis on the role of government. The second one is to examine the practices in China. Based on the analysis of theory and practices in China, the paper argues that government propelling is quite crucial to renewable energy development, and concludes that further incentive policies and implementation system should be improved.


Author(s):  
Helen Kopnina

With the effects of climate change linked to the use of fossil fuels, as well as the prospect of their eventual depletion, becoming more noticeable, political establishment and society appear ready to switch towards using renewable energy. Solar power and wind power are considered to be the most significant source of global low-carbon energy supply. Wind energy continues to expand as it becomes cheaper and more technologically advanced. Yet, despite these expectations and developments, fossil fuels still comprise nine-tenths of the global commercial energy supply. In this article, the history, technology, and politics involved in the production and barriers to acceptance of wind energy will be explored. The central question is why, despite the problems associated with the use of fossil fuels, carbon dependency has not yet given way to the more ecologically benign forms of energy. Having briefly surveyed some literature on the role of political and corporate stakeholders, as well as theories relating to sociological and psychological factors responsible for the grassroots’ resistance (“not in my backyard” or NIMBYs) to renewable energy, the findings indicate that motivation for opposition to wind power varies. While the grassroots resistance is often fueled by the mistrust of the government, the governments’ reason for resisting renewable energy can be explained by their history of a close relationship with the industrial partners. This article develops an argument that understanding of various motivations for resistance at different stakeholder levels opens up space for better strategies for a successful energy transition.


2017 ◽  
Vol 379 ◽  
pp. 24-30
Author(s):  
Lamia Azouaou ◽  
Nassima Slimani ◽  
Amel Chadlia

Nowadays, global warming is central to all discussions, as governments are trying to make decisions in order to slow the greenhouse effect. This lead to the creation of “sustainable development”, which relies on renewable energies in order to preserve the environment. The development issues of renewable energy in Algeria drove the Algerian State to integrate it in the national energy mix. It is a major challenge regarding the preservation of fossil fuels, diversification of electricity production chains and contribution to sustainable development. Algeria launched a renewable energy development program going from 2011 to 2030 in order to revive economic growth in this country. The program recently concluded its first phase dedicated to pilot projects and testing various technologies available. The Renewable Energies and Energy Efficiency Development Program (REEEDP), in the revised version by the services of the Department of Energy, has just been adopted with the conclusions highlighted by its first phase.the preservation of fossil fuels, diversification of electricity production chains and contribution to sustainable development. Algeria launched a renewable energy development program going from 2011 to 2030 in order to revive economic growth in this country. The program recently concluded its first phase dedicated to pilot projects and testing various technologies available. The Renewable Energies and Energy Efficiency Development Program (REEEDP), in the revised version by the services of the Department of Energy, has just been adopted with the conclusions highlighted by its first phase.


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