Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia

This study estimated Indonesian households' Multidimensional Energy Poverty Index (MEPI) using Alkire-Foster's multidimensional poverty concept to capture the incidence, intensity, decomposition, and changes over time. The study used monetary and non-monetary variables to identify the avai...

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Main Authors: Rofiq Nur Rizal, Djoni Hartono, Teguh Dartanto, Yohanna M.L. Gultom
Format: Article
Language:English
Published: Elsevier 2024-02-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S240584402400166X
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author Rofiq Nur Rizal
Djoni Hartono
Teguh Dartanto
Yohanna M.L. Gultom
author_facet Rofiq Nur Rizal
Djoni Hartono
Teguh Dartanto
Yohanna M.L. Gultom
author_sort Rofiq Nur Rizal
collection DOAJ
description This study estimated Indonesian households' Multidimensional Energy Poverty Index (MEPI) using Alkire-Foster's multidimensional poverty concept to capture the incidence, intensity, decomposition, and changes over time. The study used monetary and non-monetary variables to identify the availability, accessibility, affordability, consumption, and deprivation of modern energy services; and compared existing affordability indicators. Redundancy, robustness, and sensitivity tests were conducted with three weighting schemes and deprivation cut-offs. The study decomposed and determined household-head (HH) socio-economic, demographic, and geographic factors for MEP using the Logit, Probit, Tobit, and Heckman Selection models. The results show that the low-income and high cost (LIHC) was the most robust affordability indicator, followed by the ten percent rule (TPR). The complement-frequency weighting scheme gave the smallest and most robust MEPI compared to equal and principal component analysis (PCA) weighting. Three alternative deprivation cut-offs can show households as “vulnerable,” “moderately,” or “severely” energy poor. The MEP incidence decreased, but its intensity remained high and increased. Energy-poor households were averagely deprived of 55–60 % of all weighted indicators. The lack of modern cooking services was the primary cause. MEPI differed by geographical location and HH gender, education, business field, and employment status. Policies that boost education levels, raise household income, and increase the availability, accessibility, and affordability of modern cooking technology in the rural, hinterland, or non-coastal forested locations in the eastern islands of Indonesia may minimize the number of households experiencing MEP.
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spelling doaj.art-ad465e8bc0894bf193a9944020292d022024-02-17T06:38:03ZengElsevierHeliyon2405-84402024-02-01103e24135Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in IndonesiaRofiq Nur Rizal0Djoni Hartono1Teguh Dartanto2Yohanna M.L. Gultom3Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, Jawa Barat, Indonesia; Politeknik Statistika STIS, Jakarta Timur, Indonesia; Corresponding author. Politeknik Statistika STIS, Jl. Otto Iskandardinata No. 64C, 13330, Jakarta Timur, Indonesia.Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, Jawa Barat, Indonesia; Research Cluster on Energy Modeling and Regional Economic Analysis, Universitas Indonesia, Depok, Jawa Barat, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, Jawa Barat, Indonesia; Research Cluster on Poverty, Social Protection and Development Economics, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, Jawa Barat, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, Jawa Barat, Indonesia; Institutional Economics and Governance Research Cluster, Department of Economics, Universitas Indonesia, Depok, Jawa Barat, IndonesiaThis study estimated Indonesian households' Multidimensional Energy Poverty Index (MEPI) using Alkire-Foster's multidimensional poverty concept to capture the incidence, intensity, decomposition, and changes over time. The study used monetary and non-monetary variables to identify the availability, accessibility, affordability, consumption, and deprivation of modern energy services; and compared existing affordability indicators. Redundancy, robustness, and sensitivity tests were conducted with three weighting schemes and deprivation cut-offs. The study decomposed and determined household-head (HH) socio-economic, demographic, and geographic factors for MEP using the Logit, Probit, Tobit, and Heckman Selection models. The results show that the low-income and high cost (LIHC) was the most robust affordability indicator, followed by the ten percent rule (TPR). The complement-frequency weighting scheme gave the smallest and most robust MEPI compared to equal and principal component analysis (PCA) weighting. Three alternative deprivation cut-offs can show households as “vulnerable,” “moderately,” or “severely” energy poor. The MEP incidence decreased, but its intensity remained high and increased. Energy-poor households were averagely deprived of 55–60 % of all weighted indicators. The lack of modern cooking services was the primary cause. MEPI differed by geographical location and HH gender, education, business field, and employment status. Policies that boost education levels, raise household income, and increase the availability, accessibility, and affordability of modern cooking technology in the rural, hinterland, or non-coastal forested locations in the eastern islands of Indonesia may minimize the number of households experiencing MEP.http://www.sciencedirect.com/science/article/pii/S240584402400166XMultidimensional energy povertyMonetary variablesNon-monetary variablesAffordabilityChanges over timeGeographic factors
spellingShingle Rofiq Nur Rizal
Djoni Hartono
Teguh Dartanto
Yohanna M.L. Gultom
Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
Heliyon
Multidimensional energy poverty
Monetary variables
Non-monetary variables
Affordability
Changes over time
Geographic factors
title Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
title_full Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
title_fullStr Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
title_full_unstemmed Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
title_short Multidimensional energy poverty: A study of its measurement, decomposition, and determinants in Indonesia
title_sort multidimensional energy poverty a study of its measurement decomposition and determinants in indonesia
topic Multidimensional energy poverty
Monetary variables
Non-monetary variables
Affordability
Changes over time
Geographic factors
url http://www.sciencedirect.com/science/article/pii/S240584402400166X
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