Hutagalung, AM, Hartono, D, Arentsen, MJ et al. (1 more author) (2019) Economic implications of domestic natural gas allocation in Indonesia. International Journal of Energy Sector Management, 13 (2). pp. 424-449. ISSN 1750-6220
Abstract
Purpose
The purpose of the paper is to provide to a better scientific understanding of Indonesia’s domestic gas allocation policy and its effects on the national economy and to answer the question of what best priorities can be set in allocating the natural gas for the domestic market to maximize the benefits for the national economy.
Design/methodology/approach
The authors apply a Computabled General Equilibrium (CGE). The Social Accounting Matrix 2008 is used to calibrate the CGE Model. There are two scenarios proposed, each is simulated with certain percentage of gas supply curtailment (50 MMSCFD, Scenario A), (100 MMSCFD, Scenario B).
Findings
It is confirmed that government’s current policy to give priority to oil production is not the optimum way to maximize added value of natural gas to Indonesian economy. While oil production generates state revenue, it is industry and petrochemical sector that induces high economic impacts because of strong backward and forward linkages.
Research limitations/implications
Due to the limited data availability, it is assumed that the data on the SAM 2008 are valid for describing the structure of Indonesian economy.
Practical implications
The paper provides recommendation to the government to revise gas allocation policy by changing the rank of consumers’ priority.
Originality/value
This paper provides instruments to measure the impact of Indonesia’s domestic gas allocation policy. Finding the best hierarchy of consumer priorities is essential for maximizing added value of natural gas for the national economy.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © Emerald Publishing Limited 2018. Published by Emerald Publishing Limited Licensed re-use rights only. This is an author produced version of a paper published in International Journal of Energy Sector Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Policy; Input-output tables; Modelling; Resource management; Natural gas; General equilibrium models; Social accounting matrix; C68; Q31; Q43; Q48; E64; O21 |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Geography (Leeds) > Ecology & Global Change (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 17 Oct 2018 11:06 |
Last Modified: | 20 Jun 2019 20:30 |
Status: | Published |
Publisher: | Emerald |
Identification Number: | 10.1108/ijesm-05-2018-0003 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:137074 |