Research Article

Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment

Volume: 38 Number: 2 June 5, 2023
EN TR

Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment

Abstract

Renewable energy capacity, agricultural sector GDP, and agricultural employment in Indonesia experienced a downward trend from 1990 to 2019. This trend negatively impacts Indonesia’s target to utilize renewable energy as its energy source, employment in the agricultural sector, and the importance of agriculture to the Indonesian economy. Based on these issues, this research examined the impact of renewable energy usage and agricultural sector GDP on the employment rate of the agricultural sector by implementing the Autoregressive Distributed Lag (ARDL) model. According to empirical findings, total renewable energy supply improves agricultural sector employment in the short and long run; however, agricultural sector GDP improves employment only in the short run and negatively impacts the long run. It suggests that renewable energy has the potency to enhance agricultural employment. The use of renewable energy is expected to be a solution for the decrease in employment in the agricultural sector along with the GDP decrease. Governments can make sure that all funds allocated to an agroecological program or policy are used to increase agricultural renewable energy use. Renewable energy regulations should be assessed based on their ability to reduce pollution while also ensuring a reliable energy supply for the agricultural sector at an affordable price.

Keywords

References

  1. Adelaja, S., & Hailu, Y. G. (2008). Renewable Energy Development and Implications to. Director, 1–15. Retrieved from http://ageconsearch.umn.edu/bitstream/6132/2/470566.pdf
  2. Arendonk, A. van. (2015). The development of the share of agriculture in GDP and employment: A case study of China, Indonesia, the Netherlands and the United States. Retrieved from https://edepot.wur.nl/342795
  3. Deka, A., & Dube, S. (2021). Analyzing the causal relationship between exchange rate, renewable energy and inflation of Mexico (1990–2019) with ARDL bounds test approach. Renewable Energy Focus, 37(June), 78–83. https://doi.org/10.1016/j.ref.2021.04.001
  4. Diao, X., Hazell, P., Resnick, D., & Thurlow, J. (2007). The role of agriculture in development: Implications for Sub-Saharan Africa. In Research Report of the International Food Policy Research Institute. https://doi.org/10.2499/9780896291614rr153
  5. Dickey, D. A., & Fuller, W. A. (2012). Journal of the American Statistical Association Distribution of the Estimators for Autoregressive Time Series with a Unit Root Distribution of the Estimators for Autoregressive Time Series With a Unit Root. July 2015, 37–41. https://doi.org/10.1080/01621459.1979.10482531
  6. Garrett-Peltier, H. (2017). Green versus brown: Comparing the employment impacts of energy efficiency, renewable energy, and fossil fuels using an input-output model. Economic Modelling, 61(November 2016), 439–447. https://doi.org/10.1016/j.econmod.2016.11.012
  7. Ghosh, S. (2009). Electricity supply, employment and real GDP in India: evidence from cointegration and Granger-causality tests. Energy Policy, 37(8), 2926–2929. https://doi.org/10.1016/j.enpol.2009.03.022
  8. Gollin, D., Parente, S., & Rogerson, R. (2002). The Role of Agriculture in Development. The New Palgrave Dictionary of Economics, 92(2), 142–149. https://doi.org/10.1057/9780230226203.0037

Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Early Pub Date

May 24, 2023

Publication Date

June 5, 2023

Submission Date

May 27, 2022

Acceptance Date

September 21, 2022

Published in Issue

Year 2023 Volume: 38 Number: 2

APA
Prilliadi, H. (2023). Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment. İzmir İktisat Dergisi, 38(2), 305-320. https://doi.org/10.24988/ije.1122446
AMA
1.Prilliadi H. Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment. İzmir İktisat Dergisi. 2023;38(2):305-320. doi:10.24988/ije.1122446
Chicago
Prilliadi, Hilmy. 2023. “Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment”. İzmir İktisat Dergisi 38 (2): 305-20. https://doi.org/10.24988/ije.1122446.
EndNote
Prilliadi H (June 1, 2023) Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment. İzmir İktisat Dergisi 38 2 305–320.
IEEE
[1]H. Prilliadi, “Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment”, İzmir İktisat Dergisi, vol. 38, no. 2, pp. 305–320, June 2023, doi: 10.24988/ije.1122446.
ISNAD
Prilliadi, Hilmy. “Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment”. İzmir İktisat Dergisi 38/2 (June 1, 2023): 305-320. https://doi.org/10.24988/ije.1122446.
JAMA
1.Prilliadi H. Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment. İzmir İktisat Dergisi. 2023;38:305–320.
MLA
Prilliadi, Hilmy. “Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment”. İzmir İktisat Dergisi, vol. 38, no. 2, June 2023, pp. 305-20, doi:10.24988/ije.1122446.
Vancouver
1.Hilmy Prilliadi. Enhancing the Renewable Energy and GDP Share of Agriculture in Indonesia: Analysis of the Impacts on Agricultural Sector Employment. İzmir İktisat Dergisi. 2023 Jun. 1;38(2):305-20. doi:10.24988/ije.1122446

Cited By

İzmir Journal of Economics
is indexed and abstracted by
TR-DİZİN, DOAJ, EBSCO, ERIH PLUS, Index Copernicus, Ulrich’s Periodicals Directory, EconLit, Harvard Hollis, Google Scholar, OAJI, SOBIAD, CiteFactor, OJOP, Araştırmax, WordCat, OpenAIRE, Base, IAD, Academindex

Dokuz Eylul University Publishing House Web Page
https://kutuphane.deu.edu.tr/yayinevi/

Journal Contact Details Page
https://dergipark.org.tr/en/pub/ije/contacts