Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

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Empowering Energy Efficiency: The Role of Local Government Financing in Indonesia

Authors
Andi Dian Resyani1, *, Maat Pono1, Sri Sundari1
1Hasanuddin University, Makassar, Indonesia
*Corresponding author. Email: resyaniad23a@student.unhas.ac.id
Corresponding Author
Andi Dian Resyani
Available Online 30 July 2025.
DOI
10.2991/978-94-6463-758-8_155How to use a DOI?
Keywords
Government funding; Energy efficiency; Economic development
Abstract

This study aims to analyze the impact of local government financing on energy efficiency in Indonesia, while considering the role of economic development levels and private investment as control variables. The study employs a quantitative approach using secondary data collected from 34 provinces in Indonesia over the period 2015 to 2022. The data were analyzed using panel data models, with the Fixed Effects Model (FEM) and Random Effects Model (REM) approaches, and the best model was selected through the Hausman test. The independent variable in this study is local government financing, while the dependent variable is energy efficiency, measured by energy consumption per unit of Gross Domestic Product (GDP). Economic development levels and private investment are utilized as control variables. The results show that local government financing has a positive and significant effect on energy efficiency at the provincial level. In addition, economic development and private investment also significantly influence the improvement of energy efficiency. Provinces with higher levels of economic development and greater private investment tend to have better energy efficiency. The conclusion of this study underscores the importance of local fiscal policies that support the green energy sector, as well as the need for collaboration between the public and private sectors to achieve more optimal energy efficiency.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
30 July 2025
ISBN
978-94-6463-758-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-758-8_155How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Andi Dian Resyani
AU  - Maat Pono
AU  - Sri Sundari
PY  - 2025
DA  - 2025/07/30
TI  - Empowering Energy Efficiency: The Role of Local Government Financing in Indonesia
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 1942
EP  - 1952
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_155
DO  - 10.2991/978-94-6463-758-8_155
ID  - Resyani2025
ER  -