Reliable Electricity Access, Micro and Small Enterprises, and Poverty Reduction in Indonesia

Handayani, Putri Wahyu; Nasrudin, Rus’an; Rezki, Jahen Fachrul

doi:10.1080/00074918.2023.2175782

Cited by 3 publications

(2 citation statements)

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“…The presence of negative coefficients (−0.09878 for LICs, −0.17267 for LMICs, and −0.10039 for SSA) suggests that an increase in renewable energy consumption is associated with a decrease in poverty levels, ultimately resulting in an enhancement of the overall standard of living. Our study finding is supported by the findings offered by [2,[35][36][37]. Study findings suggest that promoting and investing in renewable energy initiatives can greatly enhance the economic circumstances of vulnerable populations in these regions.…”

Section: Dynamic Sur Estimationsupporting

confidence: 85%

“…The mitigation of indoor air pollution and respiratory problems can be achieved by using clean cooking alternatives, such as efficient stoves or biogas systems. Access to consistent energy enhances the quality of study lighting and facilitates greater access to information and communication technologies (ICTs) [37]. The utilization of clean energy has the potential to significantly enhance economic growth and generate employment opportunities in underdeveloped regions.…”

Section: Introductionmentioning

confidence: 99%

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Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation

Li,

Qamruzzaman

2023

Sustainability

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This research delves into the intricate interconnections among financial inclusion, the adoption of renewable energy, environmental resilience, and poverty reduction in low-income countries (LICs), lower-middle-income countries (LMICs), and sub-Saharan Africa (SSA), in light of complex issues such as poverty, environmental degradation, and sustainable development. This work comprehensively understands the interaction between these crucial factors by utilizing a dynamic panel model, specifically Dynamic Seemingly Unrelated Regression (DSUR), CUP-FM, and CUP-BC. The empirical analysis conducted in our study has produced findings that are both significant and noteworthy. Financial inclusion pertains to facilitating formal financial services for demographic segments that have historically been marginalized or excluded. A negative relationship between financial inclusion and poverty levels in low-income countries (LICs), lower-middle-income countries (LMICs), and sub-Saharan Africa (SSA) has been observed. Moreover, there is an inverse correlation between the utilization of renewable energy sources and poverty, indicating that the utilization of renewable energy sources possesses the potential to catalyze the enhancement of economic conditions and overall welfare. However, it is important to note that the correlation between environmental deterioration and poverty underscores the urgent necessity for implementing comprehensive policies that address sustainability and poverty reduction. The results above shed light on the potential for governmental interventions to promote positive transformations. Improving endeavors to achieve financial inclusion holds the capacity to empower individuals and businesses alike, fostering economic progress and alleviating poverty. Renewable energy technology is progressively acknowledged as a viable strategy to promote economic advancement and tackle environmental issues simultaneously. It is of utmost importance to establish comprehensive policy frameworks that effectively tackle the intricate interplay between environmental degradation and poverty to create a future that is both sustainable and egalitarian.

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Section: Dynamic Sur Estimationsupporting

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation

Li,

Qamruzzaman

2023

Sustainability

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Non-farm entrepreneurship, caste, and energy poverty in rural India

Koomson,

Orkoh,

Ahmad

2023

Energy Economics

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Estimating the value of off-grid electricity benefits for rural households: Evidence from rural Sumba, Indonesia

Wibisono

Lovett

Cheng

et al. 2023

Preprint

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Background Off-grid renewable electricity generation and distribution has become a cost effective way to supply electricity in rural areas remote from the grid system. However, in addition to the risk of not being able to pay for full cost tariffs, beneficiaries may not have the skills or time for the institutional and technical requirements to operate and maintain the technology. This might lead to sub-optimal functioning of off-grid renewable power plants and potentially to damage and abandonment. This raises the question of whether off-grid electricity benefits outweigh the effort and costs experienced by rural communities.Results We conducted a cost-benefit analysis of off-grid electricity in rural Sumba Island, Indonesia, which has been a focal area for implementation of off-grid electricity systems under the Indonesian government 'Iconic Island' programme. The research found a positive benefit-cost ratio when both market and non-market values were estimated suggesting that electricity is advantageous for rural households even without supporting interventions.Conclusions In conclusion we highlight the significance of non-market benefits of electricity. We argue that estimating the value of perceived benefits of electricity is pivotal for making decisions about intervention and formulating investment strategies for establishment of off-grid electricity systems.

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Reliable Electricity Access, Micro and Small Enterprises, and Poverty Reduction in Indonesia

Cited by 3 publications

References 58 publications

Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation

Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation

Non-farm entrepreneurship, caste, and energy poverty in rural India

Estimating the value of off-grid electricity benefits for rural households: Evidence from rural Sumba, Indonesia

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