Socioeconomic and climatic factors affecting household electricity consumption in Indonesia

Understanding the factors that determine household electricity consumption is essential for designing policies to support net-zero emissions targets in the energy sector. This study examines how social, economic, and climatic factors influence household electricity consumption in Indonesia. Using household-level data from 2017 to 2024 (n = 2,060,718) and applying Weighted Least Squares regressions, the study finds that multiple factors are significantly associated with electricity consumption, with effects varying across variables. These include urban location, household characteristics (composition, age, and household head education), electricity price, expenditure, dwelling characteristics (ownership status, floor area, roof and wall materials), appliance ownership, and climatic conditions (temperature, relative humidity, and precipitation). The findings highlight the need for policies that encourage the adoption of energy-efficient appliances and promote more efficient household consumption through informational nudges such as feedback and personalised advice. Electricity pricing should also be adjusted to reflect regional economic conditions, and a tiered structure should be considered for non-subsidised households. This approach would help ensure that basic needs remain affordable while providing incentives for high-consuming households to reduce their electricity use. • Factors determining electricity consumption in Indonesian households • Socioeconomic and climatic factors influence household electricity consumption • Promoting electricity efficiency and conservation is crucial • Electricity pricing should reflect regional economic conditions • Tiered electricity pricing can help encourage more efficient consumption