Examining the Driving Forces Affecting Energy Intensity During Financial Crisis: Evidence From Asean-6 Countries

Abstract

This study observes the factors affecting the changes of energy intensity in Indonesia and five selected Association of South East Asian Nations (ASEAN) countries during the period particularly measuring its impact during 1997 financial crisis. By employing the Logaritmic Mean Divisia Index, this study summaries that the changes in energy intensity in the ASEAN-6 economies was a result of the changes within industry energy intensity (intensity effect). The intensity effects also provide a proxy measure of energy efficiency activity at the sectoral level. Overall, the general direction of the intensity effect in all ASEAN countries is downward. These decreasing intensity effects show that the trend towards technological changes in ASEAN countries has assisted significantly in increasing energy efficiency. Further, all the ASEAN-6 countries showed a change in the structure index indicates that the structure of economy periodically shifted away from less energy intensive sector to more energy intensive sector.

Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: Evidence from ASEAN+6

“…Sandu et al (2019) analyzed the growth of energy-related CO 2 emissions in ASEAN and further identified its trends and drivers. Lu et al (2020) assessed energy efficiency and public health in ASEAN+3, which Setyawan et al (2020) discussed factors affecting the changes of energy intensity in Indonesia and five selected members of ASEAN. Setyawan (2020) used a comprehensive decomposition method to investigate the energy intensity performance in Indonesia to other Southeast Asia countries.…”