2021
DOI: 10.22515/sustinere.jes.v5i2.154
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Is sustainability challenging in Indonesia’s energy provision? Fuel type vs. externalities in electricity cost analysis

Abstract: This study aims to reveal the challenging sustainability within Indonesia’s energy provision by studying the electricity generating cost (GC) formation, externalities’ effect, and current Indonesia’s electricity and budget condition. In studying GC formation, two variables thought to have remarkable influence are fuel price (represented by Fuel Cost/FC) and operating time, which indicates the power plant’s type (represented by Capacity Factor/CF). The regression results indicate that CF has a greater impact on… Show more

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Cited by 4 publications
(6 citation statements)
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“…It is estimated that by 2040, China's gas demand will increase by 42 percent compared to 2011 levels. Besides environmental concerns and initiatives to use clean and sustainable energy (Asri et al, 2024;Asri & Yusgiantoro, 2020, 2021b), China's substantial energy needs, especially for oil, are crucial for maintaining its economic growth. These needs must be fulfilled from multiple external sources.…”
Section: Introductionmentioning
confidence: 99%
“…It is estimated that by 2040, China's gas demand will increase by 42 percent compared to 2011 levels. Besides environmental concerns and initiatives to use clean and sustainable energy (Asri et al, 2024;Asri & Yusgiantoro, 2020, 2021b), China's substantial energy needs, especially for oil, are crucial for maintaining its economic growth. These needs must be fulfilled from multiple external sources.…”
Section: Introductionmentioning
confidence: 99%
“…The global economy is also highly influenced by business organizations promoting sustainability (Rahman et al, 2021). The objective of sustainability is to satisfy present needs without sacrificing the future's needs (Asri & Yusgiantoro, 2021). Sustainability is seen as the business paradigm of this century, the concept of which is translated into the business context through the triple bottom line (Souza & Alves, 2018).…”
Section: Introductionmentioning
confidence: 99%
“…The environment must bear the cost of development [1]- [3]. The cost is known as external cost or the externalities [19], [20]. Internalizing the externalities is suggested to ease the environmental impacts of economic activity [2], [21].…”
Section: Introductionmentioning
confidence: 99%
“…Many governments only focus on pursuing growth without considering environmental health. For some countries, budget constraints hinder the government from freely deciding which type of energy sources to use [19], [39] or how strict environmental regulations to apply. As a result, the environment is suffering during development.…”
Section: Introductionmentioning
confidence: 99%