Population density and energy consumption: A study in Indonesian provinces

Abstract

As the world’s fourth most populous country, the population growth rate in Indonesia is expected to stay high. Owing to a combination of high-speed urbanization and increasing population density, economic growth is predicted to increase the demand for energy consumption. Thus, it is crucial to understand the relationship between population density and energy consumption in any country. This study evaluates the impact of population density on total energy consumption and the disaggregated electricity and fuel consumption at the provincial level in Indonesia. It uses the extended Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. It also employed a balanced panel data of 33 provinces from 2010 to 2018. The results indicated that population density positively impacts energy consumption for total, electricity, and fuel consumption. This study suggests that incorporating population growth into national energy plans is crucial. Additionally, reducing energy inequality and uneven spatial distribution of the population is also needed.

Keywords

• Population density
• Energy consumption
• STIRPAT
• Panel data