[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-03-2.html
   My bibliography  Save this article

The Impact of Technological Innovation on Energy Intensity: Evidence from Indonesia

Author

Listed:
  • Mohd Haizam Mohd Saudi

    (Widyatama University, Indonesia,)

  • Obsatar Sinaga

    (Padjadjaran University, Indonesia,)

  • Djoko Roespinoedji

    (Widyatama University, Indonesia)

  • Erlane K. Ghani

    (Faculty of Accountancy Universiti Teknologi MARA Malaysia)

Abstract
The present study not only focuses on single measure of technological innovation but included three core dynamics of measuring technological innovations. These include Research and Development expenditures, High-tech exports and patents by residents. This kind of extensive examination will provide greater understanding regarding which form of technological innovation have the tendency to curtail or augment levels of energy intensity in Indonesia. The awareness derived from such broad inspection would be able to identify not only the overall contribution of technological innovations in affecting country s power intensity but highlight the specific role of each form of innovation in influencing energy intensity levels and the particular association to guide effective policy making process. The current study has adopted the refined methodology of Auto-Regressive Distributed Lags (ARDL) bound testing approach to examine the dynamic relationship among energy intensity and technology innovation with amplified understanding of the critical association to support the course of economic planning and policy making. The results of ARDL bound testing approach confirm that high technology exports, research and development expenditure and number of registered patents are strong determinants of energy inefficiency in Indonesia. Likewise, the outcomes affirm that all the three proxies of technology innovation have a constructive and negative effect on energy inefficiency in Indonesia which implies that the high technology exports, number of registered patents and R&D expenditure are the main source of reducing energy inefficiency in Indonesia in the long run and short run. Also, the results of Granger causality method confirm a bi-directional causal relationship between energy intensity and technology innovation in Indonesia.

Suggested Citation

  • Mohd Haizam Mohd Saudi & Obsatar Sinaga & Djoko Roespinoedji & Erlane K. Ghani, 2019. "The Impact of Technological Innovation on Energy Intensity: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 11-17.
    • Handle: RePEc:eco:journ2:2019-03-2
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/7731/4346
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/7731/4346
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
    2. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25, 03-2014.
    3. Christopher N Ekong & Usenobong F Akpan, 2014. "On Energy Subsidy Reform and Sustainable Development in Nigeria," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(4), pages 186-202.
    4. Paola Garrone & Luca Grilli & Boris Mrkajic, 2018. "The role of institutional pressures in the introduction of energy‐efficiency innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1245-1257, December.
    5. Adepoju T. F & Eyibio U. P & Olatunbosun B. E, 2016. "Optimization Investigation of Biogas Potential of Tithonia Diversifolia as an Alternative Energy Source," International Journal of Chemical and Process Engineering Research, Conscientia Beam, vol. 3(3), pages 46-55.
    6. Hartono, Djoni & Resosudarmo, Budy P., 2008. "The economy-wide impact of controlling energy consumption in Indonesia: An analysis using a Social Accounting Matrix framework," Energy Policy, Elsevier, vol. 36(4), pages 1404-1419, April.
    7. Christopher N. Ekong & Usenobong F. Akpan, 2014. "On Energy Subsidy Reform and Sustainable Development in Nigeria," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(4), pages 186-202.
    8. Jaganath Behera, 2015. "Examined the Energy-Led Growth Hypothesis in India: Evidence from Time Series Analysis," Energy Economics Letters, Asian Economic and Social Society, vol. 2(4), pages 46-65.
    9. Valentina Bosetti, Carlo Carraro and Marzio Galeotti, 2006. "The Dynamics of Carbon and Energy Intensity in a Model of Endogenous Technical Change," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 191-206.
    10. Adepoju T. F & Eyibio U. P & Olatunbosun B. E, 2016. "Optimization Investigation of Biogas Potential of Tithonia Diversifolia as an Alternative Energy Source," International Journal of Chemical and Process Engineering Research, Conscientia Beam, vol. 3(3), pages 46-55.
    11. Jaganath Behera, 2015. "Examined the Energy-Led Growth Hypothesis in India: Evidence from Time Series Analysis," Energy Economics Letters, Asian Economic and Social Society, vol. 2(4), pages 46-56, December.
    12. Afshan, Sahar & Sharif, Arshian & Loganathan, Nanthakumar & Jammazi, Rania, 2018. "Time–frequency causality between stock prices and exchange rates: Further evidences from cointegration and wavelet analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 495(C), pages 225-244.
    13. Edame Greg Ekpung, 2014. "Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach," Journal of Social Economics Research, Conscientia Beam, vol. 1(7), pages 129-140.
    14. Mathias Binswanger, 2004. "Time-saving innovations and their impact on energy use: some lessons from a household-production-function approach," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(3), pages 209-218.
    15. Nur Hidayah binti Mohd Razali & Wan Mohamad Asyraf Bin Wan Afthanorhan, 2014. "Improving Energy Conservation Using Six Sigma Methodology at Faculty of Computer and Mathematical Sciences (FSKM), Universiti Teknologi Mara (UiTM), Shah Alam," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(2), pages 52-68.
    16. Nur Hidayah binti Mohd Razali & Wan Mohamad Asyraf, 2014. "Improving Energy Conservation Using Six Sigma Methodology at Faculty of Computer and Mathematical Sciences (FSKM), Universiti Teknologi Mara (UiTM), Shah Alam," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(1), pages 52-68, March.
    17. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25.
    18. Dhakal, Shobhakar, 2009. "Urban energy use and carbon emissions from cities in China and policy implications," Energy Policy, Elsevier, vol. 37(11), pages 4208-4219, November.
    19. Carlos Aller, Maria Jesus Herrerias, and Javier Ordóñez, 2018. "The Effect of Financial Development on Energy Intensity in China," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Yang & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "How does energy aid mitigate the recipient countries’ carbon emissions?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 359-375.
    2. Adekoya, Oluwasegun B. & Oliyide, Johnson A. & Kenku, Oluwademilade T. & Ajayi, Oluwafisayo F., 2023. "China's technological spillover effect on the energy efficiency of the BRI countries," Energy Policy, Elsevier, vol. 182(C).
    3. Chen, Maozhi & Sinha, Avik & Hu, Kexiang & Shah, Muhammad Ibrahim, 2021. "Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    4. Liu, Meihan & Baisheng, Shi & Alharthi, Majed & Hassan, Muhammad Shahid & Hanif, Imran, 2023. "The role of natural resources, clean energy and technology in mitigating carbon emissions in top populated countries," Resources Policy, Elsevier, vol. 83(C).
    5. Hui Li & Dongsheng Yu & Zhixuan Ke, 2023. "Commercial System Reform, Enterprise Green Innovation and Enterprise ESG Performance," Sustainability, MDPI, vol. 15(19), pages 1-19, October.
    6. Amoako, Samuel & Andoh, Francis Kwaw & Asmah, Emmanuel Ekow, 2023. "Technological advancement, sectoral growth, and electricity consumption in Ghana," Energy, Elsevier, vol. 263(PB).
    7. Paramati, Sudharshan Reddy & Shahzad, Umer & Doğan, Buhari, 2022. "The role of environmental technology for energy demand and energy efficiency: Evidence from OECD countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    8. Qianyi Li & Md Qamruzzaman, 2023. "Innovation-Led Environmental Sustainability in Vietnam—Towards a Green Future," Sustainability, MDPI, vol. 15(16), pages 1-34, August.
    9. Zhang, Dongyang, 2024. "The pathway to curb greenwashing in sustainable growth: The role of artificial intelligence," Energy Economics, Elsevier, vol. 133(C).
    10. Manman Wang & Shuai Lian & Shi Yin & Hengmin Dong, 2020. "A Three-Player Game Model for Promoting the Diffusion of Green Technology in Manufacturing Enterprises from the Perspective of Supply and Demand," Mathematics, MDPI, vol. 8(9), pages 1-26, September.
    11. Rida Waheed & Suleman Sarwar & Zouheir Mighri, 2021. "Role of high technology exports for energy efficiency: Empirical evidence in the context of Gulf Cooperation Council countries," Energy & Environment, , vol. 32(5), pages 803-819, August.
    12. Dilawar Khan & Muhammad Nouman & Arif Ullah, 2023. "Assessing the impact of technological innovation on technically derived energy efficiency: a multivariate co-integration analysis of the agricultural sector in South Asia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3723-3745, April.
    13. Wojciech Chmielewski & Marta Postuła & Przemysław Dubel, 2023. "The Impact of Expenditure on Research and Development on Selected Energy Factors in the European Union," Energies, MDPI, vol. 16(8), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Haseeb & Irwan Shah Zainal Abidin & Qazi Muhammad Adnan Hye & Nira Hariyatie Hartani, 2019. "The Impact of Renewable Energy on Economic Well-Being of Malaysia: Fresh Evidence from Auto Regressive Distributed Lag Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 269-275.
    2. Ahmed Nahar Al-Hussaini, 2019. "The Role of Financial Management in Testing Environmental Kuznets Curve in Kuwait: Evidence from ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 353-359.
    3. Andhyka Tyaz Nugraha & Nor Hasni Osman, 2019. "CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 291-298.
    4. Azhar Susanto & Meiryani Meiryani, 2019. "The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 229-236.
    5. Winwin Yadiati & Nissa Nissa & Sugiono Paulus & Harry Suharman & Meiryani Meiryani, 2019. "The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 261-268.
    6. Shao, Jun & Wang, Lianghu, 2023. "Can new-type urbanization improve the green total factor energy efficiency? Evidence from China," Energy, Elsevier, vol. 262(PB).
    7. Jaganath BEHERA, 2023. "Sectoral Electricity Consumption And Economic Growth In India: An Empirical Study From 1970 To 2016," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(2), pages 127-152.
    8. Mohd Haizam Mohd Saudi & Obsatar Sinaga & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The role of renewable, non-renewable electricity consumption and carbon emission in development in Indonesia: Evidence from Distributed Lag Tests," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 46-52.
    9. Evans, Olaniyi & Nwaogwugwu, Isaac & Vincent, Olusegun & Wale-Awe, Olawale & Mesagan, Ekundayo & Ojapinwa, Taiwo, 2023. "The socio-economics of the 2023 fuel subsidy removal in Nigeria," MPRA Paper 118360, University Library of Munich, Germany.
    10. Matthew O. Gidigbi & Kehinde M. Bello & Gbenga F. Babarinde, 2019. "Petroleum subsidy and its impact on tax revenue volatility," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 11(1), pages 24-36, June.
    11. Muhammad Yusuf & Zakir Sabara & Ismail Suardi Wekke, 2019. "Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 276-281.
    12. Jahangir S M Rashed & Dural Betul Yuce, 2018. "Crude oil, natural gas, and economic growth: impact and causality analysis in Caspian Sea region," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(3), pages 169-184, September.
    13. Muhammad Salman Shabbir & Mohd Noor Mohd Shariff & Muzaffar Asad & Rabia Salman & Israr Ahmad, 2018. "Time-frequency Relationship between Innovation and Energy Demand in Pakistan: Evidence from Wavelet Coherence Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 251-258.
    14. Yan, Huijie, 2015. "Provincial energy intensity in China: The role of urbanization," Energy Policy, Elsevier, vol. 86(C), pages 635-650.
    15. Ma, Ben, 2015. "Does urbanization affect energy intensities across provinces in China?Long-run elasticities estimation using dynamic panels with heterogeneous slopes," Energy Economics, Elsevier, vol. 49(C), pages 390-401.
    16. Tian, Maoxi & El Khoury, Rim & Alshater, Muneer M., 2023. "The nonlinear and negative tail dependence and risk spillovers between foreign exchange and stock markets in emerging economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 82(C).
    17. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    18. Yu Dong & Tongyu Qin & Siyuan Zhou & Lu Huang & Rui Bo & Haibo Guo & Xunzhi Yin, 2020. "Comparative Whole Building Life Cycle Assessment of Energy Saving and Carbon Reduction Performance of Reinforced Concrete and Timber Stadiums—A Case Study in China," Sustainability, MDPI, vol. 12(4), pages 1-24, February.
    19. Effendi, Yuventus & Resosudarmo, Budy, 2020. "Development of Renewable Energy in ASEAN Countries: Socio-economic and Environmental Impacts," Conference papers 333229, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Liao, Hua & Wei, Yi-Ming, 2010. "China's energy consumption: A perspective from Divisia aggregation approach," Energy, Elsevier, vol. 35(1), pages 28-34.

    More about this item

    Keywords

    Energy intensity; technology innovation; R&D; Indonesia.;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-03-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.