Electricity Consumption and Gross Regional Domestic Product Nexus in Kalimantan Selatan Province: Cointegration and Causality Analysis

DOI

10.2991/assehr.k.211102.009How to use a DOI?

Keywords

Granger causality; time series; economic growth; energy conservation

Abstract

This paper examines the direction of the long-run and short-run causality between electricity consumption and real GRDP in South Kalimantan Province. The time series used in testing is annual data from 2000 to 2018. The analysis of cointegration shows that electricity consumption and GRDP do not have a long-run nexus. The results of Granger causality analysis show that in the short term, there is a bidirectional causality from GRDP to electricity consumption and electricity consumption to GRDP. It explains that the GRDP is a variable that affects the amount of electricity consumption in South Kalimantan Province. The economic growth will have an impact on increasing electricity consumption. Besides, electricity consumption itself is also a variable that influences the fluctuation in GRDP. So that in the short term, the efficiency of electricity usage or the reduction of electricity consumption through demand-side management will affect the economic sectors that are directly related to the formation of GRDP in South Kalimantan Province. However, in the long run, the efficiency in electricity consumption will not affect economic growth in the province of South Kalimantan. So, in the long run, energy conservation policies in South Kalimantan Province can be implemented.

Copyright

© 2021 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Karina Shella Putri
AU  - Hafidz Noor Fikri
PY  - 2021
DA  - 2021/11/16
TI  - Electricity Consumption and Gross Regional Domestic Product Nexus in Kalimantan Selatan Province: Cointegration and Causality Analysis
BT  - Proceedings of the 1st International Conference on Research in Social Sciences and Humanities (ICoRSH 2020)
PB  - Atlantis Press
SP  - 66
EP  - 72
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211102.009
DO  - 10.2991/assehr.k.211102.009
ID  - Putri2021
ER  -