Analysis of determinants of renewable energy consumption in Indonesia

Purpose: This study aims to analyze the determinants of renewable energy consumption in Indonesia. The free variables used are Gross Domestic Product (GDP), energy subsidies (SUB), urban population (POPs), and carbon dioxide (CO2) emissions. The data used is time series data for the period 1990-2023. Research methodology: This study uses a quantitative descriptive method with Error Correction Model (ECM) and Ordinary Least Square (OLS) analysis. Results: The results of the study show that in the short term, the variables of GDP and urban population have a positive but insignificant effect. For the energy subsidy variable, in the short term it has a negative and significant effect. Then the variable carbon dioxide (CO2) emission has a positive and significant effect on renewable energy consumption in Indonesia. Meanwhile, in the long term, the variables of GDP and carbon dioxide (CO2) emissions have a positive and significant effect on renewable energy consumption in Indonesia. The variable energy subsidy in the long term has a negative and significant effect on renewable energy consumption in Indonesia. Meanwhile, for the urban population variable, in the long term it has a positive but not significant effect on renewable energy consumption in Indonesia. Simultaneous testing showed that the variables of Gross Domestic Product (GDP), energy subsidies (SUB), urban population (POPs), and carbon dioxide (CO2) emissions together affect renewable energy consumption in Indonesia.