Volume 3: Desember 2023 – econworkingpaper.feb.ugm.ac.id

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

Volume 3: Desember 2023 Working Paper Kamis, 21 Desember 2023

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

Volume 3: Desember 2023 Working Paper Kamis, 21 Desember 2023

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

Volume 3: Desember 2023 Working Paper Kamis, 21 Desember 2023

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?

Volume 3: Desember 2023 Working Paper Kamis, 21 Desember 2023

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

Volume 3: Desember 2023 Working Paper Kamis, 21 Desember 2023

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