Arsip:

2023

Volume 3: Desember 2023

Climate Policy Uncertainty and the Demand for Renewable Energy in the United States of America: Evidence from a Non-Linear Threshold Autoregressive Model

Abstract

This study examines the relationship between climate policy uncertainty and the demand for renewable energy in the United States. The primary findings suggest that there is a nonlinear threshold effect resulting from climate policy uncertainty, as measured by the Climate Policy Uncertainty Index (CPU) and the Environmental Policy Uncertainty Index (ENVPU), on renewable energy demand (REC). The findings indicate a negative relationship between the CPU and the REC when the CPU is beyond a specific threshold. This suggests that economic agents adopt a cautious approach, sometimes referred to as the “wait and see” policy, in their renewable energy allocation. In essence, customers may opt to reduce their utilization of renewable energy in favor of alternate sources as a means to circumvent the investment risks associated with renewable alternatives.

Author

Mohammad Arief Rajendra
Sekar Utami Setiastuti

Reseach Area

National

Research Topic

Truncated and Censored Models
Government Policy

Keywords

Climate policy uncertainty
Renewable energy demand
Crude oil price

Publication Type

Working Paper

The Determinants of Financial Inclusion among Indonesian Muslim Households

Abstract

This study empirically examines the determinants of financial inclusion among Indonesian Muslims using individual-level panel data. We investigated financial inclusion indicators such as borrowing from financial institutions, bank account ownership, the borrowed amount, and savings in financial services. We analysed data from the Indonesian Family Life Survey (IFLS) fourth (2007) and fifth (2014) waves, offering a comprehensive dataset with unique socio-economic variables. We used Ordinary Least Squares and Logit estimations to identify factors influencing individuals’ access to financial services and the average borrowed amount. Our findings indicate that urban residents with higher wealth, predominantly males, have better access to financial services. Banks remain the primary source for loans among Indonesian Muslims. Access to commercial banks significantly impacts loan accessibility. Notably, Baitul Maal WatTamwil (BMT), an Islamic microfinance institution, enhances the probability of Indonesian Muslims accessing formal loans.

Author

Novat Pugo Sambodo
Riswanti Budi Sekaringsih
Meikha Azzani
Esa Azali Asyahid
Maulana Ryan Nurfahdhila

Reseach Area

National

Research Topic

Household Saving
Religion

Keywords

Financial Inclusion
Islamic Finance
Household
Muslim
Indonesia

Publication Type

Working Paper

Labour Productivity while Working from Home during the COVID-19 Pandemic

Abstract

This study aims to determine how the implementation of WFH (Work From Home) affects individual work productivity during the COVID-19 pandemic in Indonesia. National Labour Force Survey (Survei Angkatan Kerja Nasional/Sakernas) data for February 2021 were used in this study. In February 2021, the Sakernas questionnaire was added with questions related to the impact of COVID-19 on employment. This study used the instrumental variable analysis method, which accommodates the issue of endogeneity in the model and working in a crowded place (work_crowded) used as the instrument variable. The estimation results obtained through IV regression show that WFH significantly has a positive effect on work productivity. The group of respondents who implemented WFH in their work system, on average, has statistically higher productivity when compared to the group of respondents who did not implement WFH.

Author

Sellamitha Riadinni
Eny Sulistyaningrum

Reseach Area

National

Research Topic

Labor Economics
Wages, Compensation, and Labor Costs
Mobility, Unemployment, Vacancies, and Immigrant Workers
Production and Organizations
Health

Keywords

COVID-19
Pandemic
WFH
Productivity
Instrumental Variable

Publication Type

Working Paper

Are Households with Female Heads Really Poorer?

Abstract

The share of poor families with female heads of household is steadily increasing, from 14.41% in 2013 to 16.72% in 2019. This is in contrast to the declining poverty rate over the same period. We examine whether families with female heads of household tend to be less prosperous than those with male household heads using the wealth index constructed from the 2019 National Socioeconomic Survey data. In contrast to the hypothesized feminization of poverty theory, we find that households with female heads are more likely to be wealthier than those with male heads, even after controlling for sociodemographic factors of household heads as well as household characteristics. This finding sheds some light on the hypothesized feminization of poverty theory in the context of developing Asian countries.

Author

Alya Sakinah Zahirah
Muhammad Ryan Sanjaya

Reseach Area

National

Research Topic

Feminist Economics
Well-Being
Measurement and Analysis of Poverty
Economics of Gender

Keywords

gender
feminization of poverty theory
wealth index.

Publication Type

Working Paper

Does Conditional Cash Transfer Have a Lasting Impact?: Evidence from Indonesia

Abstract

This study aims to estimate the impact of program cessation on the behavior of Program Keluarga Harapan (PKH) beneficiaries. We utilize the Propensity Score Matching (PSM) and Difference-in-Differences (DID) models to overcome potential bias in the estimation results. We use household longitudinal data from the PKH implementation pilot study. The results show that program cessation has a significant positive impact on the share of expenditure on food and the probability of children not attending school, as well as reducing the share of expenditure on education. On the other hand, program cessation has no impact on the utilization of health services, the share of expenditure on health, and the share of expenditure on milk and eggs. These findings indicate that the impact of PKH on behavior related to health tends to continue, while for behavior related to education it does not.

Author

Faradilla Rahma Sari
Diyah Putriani
Wisnu Setiadi Nugroho

Reseach Area

National

Research Topic

Intertemporal Household Choice
Provision and Effects of Welfare Programs

Keywords

Intergenerational Transfer
Transfers
Welfare
Poverty
Health
Education

Publication Type

Working Paper

Volume 2: Juli 2023

The Relationship Between Risky Behaviors and Lifestyle and Socioeconomic Factors in Indonesian Urban Areas

Abstract

Assessment of determinants of risky behaviors, such as smoking, vaping, alcohol consumption, and drug abuse, is critically important to be conducted. Nonetheless, previous studies only looked at the role of socioeconomic factors and their relationship to risky behaviors in young people, but did not consider the lifestyle. To address this issue, we utilized microdata from the Narcotics Board of Indonesia (BNN), namely the Indonesia Urban Lifestyle Community Survey 2018, to determine which characteristics, in terms of lifestyle and socioeconomic factors, are related to the conduct of smoking, vaping, alcohol consumption, and drug abuse among young adolescents in Indonesia. Using the logistic regression method, we discovered that risky behaviors are a vicious circle. Peer effect has been linked to a higher likelihood of engaging in risky behaviors as well as nightclub visits. Gender, education, and parental education were all significant socioeconomic factors for some behaviors. This result implies that the effort to alleviate the prevalence of risky behaviors must be integrated and comprehensive.

Author

Naufal Mohamad Firdausyan
Arif Anindita
Novat Pugo Sambodo
Gumilang Aryo Sahadewo

Reseach Area

National

Research Topic

Multiple or Simultaneous Equation Models
Health Behavior
Youth

Keywords

Adolescent, Risky Behavior
Lifestyle
Sociodemography
Logistic Regression

Publication Type

Working Paper

A Hazy Future: Exploring the Effect of Air Pollution on Child Development in Indonesia

Abstract

Air pollution is a significant issue in emerging economies like Indonesia, with detrimental effects on human health. This study aimed to analyse the impact of air pollution on child development, using various datasets and employing an instrumental variable approach. The findings revealed that an increase of 1 μg/m3 in regional PM 2.5 concentration had a significant negative effect on child growth, reducing height-for-age and weight-for-age scores by 0.08 standard deviations. No significant impact was observed on the stunting variable. The study also found that girls were particularly susceptible to impaired child development due to air pollution. These results emphasize the need for policies targeting air pollution reduction to support healthy child development, especially in low-income households.

Author

Muhammad Aulia Anis
Wisnu Setiadi Nugroho
Eny Sulistyaningrum

Reseach Area

National

Research Topic

Analysis of Health Care Markets
Valuation of Environmental Effects
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

Keywords

Air Pollution
Child Development
PM 2.5
Instrumental Variable.

Publication Type

Working Paper

Spatial Analysis of Youth Unemployment in Indonesia: Minimum Wages and Industrial Mix

Abstract

This study examines the spatial distribution of youth unemployment rates (15–24 years old) and the impact of wages and industrial composition on these rates in Indonesian provinces. The persistently high youth unemployment rate and uneven distribution of youth labor across provinces have motivated this research. Data from 2010 to 2018, sourced from Sakernas and other BPS publications, were analyzed for 33 Indonesian provinces.  This study employed Moran’s index and spatial panel data methods.  The findings reveal a clustered spatial pattern of youth unemployment rates among provinces.  best-fitting model, identified as the Spatial Durbin Model (SDM) with random effects, indicates that increasing the minimum wage ratio significantly contributes to higher youth unemployment rates. Conversely, higher real wages lead to a slight decrease, whereas greater industrial sector absorption reduces youth unemployment. However, increased absorption in the service sector amplifies youth unemployment

Author

Mayrano Andrianus Sitinjak

Diny Ghuzini

Reseach Area

National

Research Topic

Single Equation Models
Wages, Compensation, and Labor Costs: General
Informal Labor Markets

Keywords

Youth Unemployment
Minimum Wages
Industrial Mix
Spatial Panel  

Publication Type

Working Paper