Cleaner energy conversion and household emission decomposition analysis in Indonesia

Increasing the efficiency of the household sector's energy consumption plays a significant role in reducing CO₂ emissions, particularly for Indonesia, the world's fourth most populous country. However, there is a lack of analytical studies on the driving forces of emissions from the household sector in Indonesia, including the contribution of one of the world's largest efforts to promote a cleaner cooking fuel program. We intend to examine the characteristics of the Indonesian energy matrix and its evolution in the household sector alongside the impact of kerosene to the Liquid Petroleum Gas (LPG) conversion program to the Indonesian emissions change in the sector. We also investigate the underlying determinant of emissions change, both directly and indirectly, from household energy consumption in Indonesia from 2000 to 2015. For this purpose, we conduct the Logarithmic Mean Divisia Index (LMDI) decomposition analysis. We found that population and income led to increases of both direct and indirect energy emission, while the impact of energy intensity was the opposite. The fuel mix and carbon intensity effect, which reflects the conversion of kerosene to LPG, contributes to reducing direct emissions with limited effect. High share growth of coal in electricity generation led to increasing indirect emissions for the period. Our findings have important policy implications, particularly for increasing the share of new and renewable energy in the national energy mix and for intensifying energy efficiency in the household sector.