Electricity Consumption, Roads and Their Infrastructure; Strategies to Increase Per Capita Income and Reduce Poverty in East Nusa Tenggara

Dian Anggraeny Rahim(1*), Atik Isniawati(2)
(*) Corresponding Author

DOI: 10.24269/ekuilibrium.v20i1.2025.pp97-112


Abstract


Low electricity consumption, restricted road length, and insufficient road infrastructure are believed to contribute to low per capita income and high poverty rates in East Nusa Tenggara. To substantiate this hypothesis, a study was undertaken in that province and the population are 21 districts and one city. This study analyzed data from 2019 to 2023 and utilized the Panel Data Regression analysis method. The findings of this study indicate that electricity consumption significantly impacts the increase in per capita income. Conversely, to alleviate poverty, the variable of road length exerts a significant influence. However, road infrastructure variables have shown no effect on boosting per capita income or reducing poverty. Formulation of strategies to diminish poverty while augmenting per capita income was conducted through the Analytical Network Process (ANP) analysis tool, involving nine stakeholders and decision-makers within the region.  ANP is a supportive tool in decision-making processes  that has many criterias and sub criterias. The agreed-upon strategy focuses on three primary priorities: enhancing community electricity consumption, extending road lengths, and enhancing road infrastructure.


Keywords


Electricity Usage; Road Networks and Infrastructure; Poverty; Percapita Income Strategic

Full Text:

References


  1. Aderogba, B. A., & Adegboye, A. A. (2019). Assessing the Impact of Road Infrastructure on Poverty Reduction in Developing Economies: The Case of Nigeria. Modern Economy, 10(12), 2430–2449. https://doi.org/10.4236/me.2019.1012153
  2. Adrangi, B., & Kerr, L. (2022). Sustainable Development Indicators and Their Relationship to GDP: Evidence from Emerging Economies. In Sustainability (Vol. 14, Issue 2). https://doi.org/10.3390/su14020658
  3. Anam, C., Plaček, M., Valentinov, V., & Del Campo, C. (2023). Village funds and poverty reduction in Indonesia: new policy insight. Discover Global Society, 1(1), 14. https://doi.org/10.1007/s44282-023-00016-6
  4. Anderson, E., d’Orey, M. A. J., Duvendack, M., & Esposito, L. (2018). Does Government Spending Affect Income Poverty? A Meta-regression Analysis. World Development, 103, 60–71. https://doi.org/https://doi.org/10.1016/j.worlddev.2017.10.006
  5. Aneja, R., & Mathpal, M. (2021). Economic Growth and Electricity Consumption in India: An Econometric Analysis. The Indian Economic Journal, 70(1), 22–33. https://doi.org/10.1177/00194662211062428
  6. Arif, I. (2023). Institutions and industry-level employment creation: an empirical analysis of the US metro-level data. Journal of Institutional Economics, 19(6), 868–892. https://doi.org/DOI: 10.1017/S1744137423000243
  7. Asiedu, E., Azomahou, T. T., Gaekwad, N. B., & Ouédraogo, M. (2021). The determinants of electricity constraints by firms in developing countries. Energy Economics, 104, 105605. https://doi.org/https://doi.org/10.1016/j.eneco.2021.105605
  8. Bazán Navarro, C. E., Álvarez-Quiroz, V. J., Sampi, J., & Arana Sánchez, A. A. (2023). Does economic growth promote electric power consumption? Implications for electricity conservation, expansive, and security policies. The Electricity Journal, 36(1), 107235. https://doi.org/https://doi.org/10.1016/j.tej.2023.107235
  9. Brüderl, J., & Ludwig, V. (2014). Fixed-Effects Panel Regression (pp. 327–358).
  10. Burke, P. J., Stern, D. I., & Bruns, S. B. (2018). The impact of electricity on economic development: A macroeconomic perspective. International Review of Environmental and Resource Economics, 12(1), 85–127. https://doi.org/10.1561/101.00000101
  11. Chen, D.-C., Chen, D.-F., Huang, S.-M., Huang, M.-J., Shyr, W.-J., & Chiou, C.-F. (2021). Critical Success Factors to Improve the Business Performance of Tea Drink Chains. Sustainability, 13, 8953. https://doi.org/10.3390/su13168953
  12. Chen, X., Nadalutti, E., & Kallscheuer, O. (2018). Region-making and cross-border cooperation: New evidence from four continents: Vol. null (null (ed.)).
  13. Cohen Kaminitz, S. (2023). The significance of GDP: a new take on a century-old question. Journal of Economic Methodology, 30(1), 1–14. https://doi.org/10.1080/1350178X.2023.2167228
  14. Coscieme, L., Mortensen, L. F., Anderson, S., Ward, J., Donohue, I., & Sutton, P. C. (2020). Going beyond Gross Domestic Product as an indicator to bring coherence to the Sustainable Development Goals. Journal of Cleaner Production, 248, 119232. https://doi.org/https://doi.org/10.1016/j.jclepro.2019.119232
  15. Curto, G., Kiritchenko, S., Nejadgholi, I., & Fraser, K. (2023). The crime of being poor.
  16. Eka Puspitawati. (2021). Indonesian Industrialization and Industrial Policy: Peer Learning from China’s Experiences. South‐South Integration and the SDGs: Enhancing Structural Transformation in Key Partner Countries of the Belt and Road Initiative, April, 1–18.
  17. Gonzalez-Urango, H., Mu, E., Ujwary-Gil, A., & Florek-Paszkowska, A. (2024). Analytic network process in economics, finance and management: Contingency factors, current trends and further research. Expert Systems with Applications, 237, 121415. https://doi.org/https://doi.org/10.1016/j.eswa.2023.121415
  18. Hallin, M., Nisol, G., & Tavakoli, S. (2023). Factor models for high-dimensional functional time series I: Representation results. Journal of Time Series Analysis, 44(5–6), 578–600. https://doi.org/https://doi.org/10.1111/jtsa.12676
  19. Hasid, Z., Mire, M. S., Rochaida, E., & Wijaya, A. (2023). Power Generation Infrastructure and its Effect on Electric Energy Consumption: Context in Indonesia, 2013–2020. International Journal of Energy Economics and Policy, 13(1 SE-Articles), 52–60. https://doi.org/10.32479/ijeep.13778
  20. Hill, E. (Ned). (2023). What Is Economic Development? And What Is the Job of an Economic Development Professional? Economic Development Quarterly, 37(1), 34–48. https://doi.org/10.1177/08912424221147013
  21. Hill, H. (2021). What’s happened to poverty and inequality in indonesia over half a century? Asian Development Review, 38(1), 68–97. https://doi.org/10.1162/adev_a_00158
  22. Hossin, K., & AlShehhi, H. (2024). Energy Consumption Behavior Analysis in the UAE Educational Buildings for Sustainable Economy: A Case Study of Ras Al Khaimah Schools. International Journal of Energy Economics and Policy, 14(2 SE-Articles), 69–76. https://doi.org/10.32479/ijeep.15360
  23. Hsiao, C. (2014). Analysis of Panel Data. Cambridge University Press. https://doi.org/10.1017/CBO9781139839327
  24. Kheybari, S., Rezaie, F. M., & Farazmand, H. (2020). Analytic network process: An overview of applications. Applied Mathematics and Computation, 367, 124780. https://doi.org/https://doi.org/10.1016/j.amc.2019.124780
  25. Kurnia, H., Masbar, R., Sirojuzilam, & Zulham. (2022). Effect of regional planning on social welfare in the Islands and mainland of Aceh Province. Journal of Human Behavior in the Social Environment, 32(3), 356–374. https://doi.org/10.1080/10911359.2021.1900013
  26. Kusumawardani, D., & Agusti, K. S. (2024). The The Effect of Energy Security on Economic Growth in ASEAN During 2000–2020. International Journal of Energy Economics and Policy, 14(2 SE-Articles), 447–459. https://doi.org/10.32479/ijeep.15463
  27. Lefebvre, V. (2023). Human resources slack and profitability: SMEs, large firms, and the role of business group affiliation. Eurasian Business Review, 13(3), 611–637. https://doi.org/10.1007/s40821-023-00240-9
  28. Lestari, D., Hasid, Z., Busari, A., & Ananda, A. A. (2022). Multiplier Effect of Energy Infrastructure on GRDP: Horizon in 3 Production Areas in East Kalimantan–Indonesia. International Journal of Energy Economics and Policy, 12(6 SE-Articles), 127–136. https://doi.org/10.32479/ijeep.13632
  29. Luu, H. N., Nguyen, N. M., Ho, H. H., & Tien, D. N. (2019). Infrastructure and economic development in developing economies: New empirical evidence from night-time satellite imagery in Vietnam. International Journal of Social Economics, 46(4), 581–594. https://doi.org/10.1108/IJSE-05-2018-0252
  30. Mahpudin, E. (2020). Poverty Reduction through Local Financial Performance: Case Study in East Nusa Tenggara Province, Indonesia. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 15, 151. https://doi.org/10.24269/ekuilibrium.v15i2.2647
  31. Maulid, L. C., Bawono, I. R., & Sudibyo, Y. A. (2021). The Effect of Government Expenditure on Economic Growth in Indonesia. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(1), 24. https://doi.org/10.24269/ekuilibrium.v16i1.3172
  32. Meilvidiri, W., Jafar, R., Asrudi, Syahruddin, Nahumury, M. A. I., & Akbar, M. (2020). The development of infrastructure and the level of poverty in the eastern part of Indonesia. IOP Conference Series: Earth and Environmental Science, 473(1), 12134. https://doi.org/10.1088/1755-1315/473/1/012134
  33. Nalle, F. W., Pangastuti, M. D., Nalle, F. W., & Pangastuti, M. D. (2022). Volume . 18 Issue 4 ( 2022 ) Pages 786-796 INOVASI : Jurnal Ekonomi , Keuangan dan Manajemen ISSN : 0216-7786 ( Print ) 2528-1097 ( Online ) Poverty level analysis in East Nusa Tenggara Province. 18(4), 786–796.
  34. Ng, C. P., Law, T. H., Jakarni, F. M., & Kulanthayan, S. (2019). Road infrastructure development and economic growth. IOP Conference Series: Materials Science and Engineering, 512(1). https://doi.org/10.1088/1757-899X/512/1/012045
  35. Omar, M. A., & Inaba, K. (2020). Does financial inclusion reduce poverty and income inequality in developing countries? A panel data analysis. Journal of Economic Structures, 9(1), 37. https://doi.org/10.1186/s40008-020-00214-4
  36. Osman Gaal, H., Abdulle Afrah, N., of Hr, D., & Benadir, T. (2017). Lack of Infrastructure: The Impact on Economic Development as a case of Benadir region and Hir-shabelle, Somalia. Developing Country Studies, 7(1), 49–55.
  37. Panzera, D., & Postiglione, P. (2022). The impact of regional inequality on economic growth: a spatial econometric approach. Regional Studies, 56(5), 687–702. https://doi.org/10.1080/00343404.2021.1910228
  38. Pulinggomang, Y., & J Fanggidae, A. H. (2019). Environtmental, Economic and Social Culture of Local Community Development Models in Manggarai Barat District. International Journal of Economics, Business and Management Research, 3(06), 23–37.
  39. Rahim, D. A. (2023). Reviewing the Role of Investment in the West Kalimantan Border. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 18(1), 83–93. https://doi.org/10.24269/ekuilibrium.v18i1.2023.pp83-93
  40. Rahma, H., Fauzi, A., Juanda, B., & Widjojanto, B. (2019). Development of a composite measure of regional sustainable development in Indonesia. Sustainability (Switzerland), 11(20), 1–16. https://doi.org/10.3390/su11205861
  41. Safitri, Y. (2018). Assessment of Rural Road Network on Economic Development of Local Government Areas in Nigeria. International Journal of Organizational Business Excellence, 2(2), 71–82.
  42. Salgotra, A., Kandari, P., & Bahuguna, U. (2021). Does Access to Finance Eradicate Poverty? A Case Study of Mudra Beneficiaries. Journal of Asian Finance Economics and Business, 8, 637–646. https://doi.org/10.13106/jafeb.2021.vol8.no1.637
  43. Shyu, C.-W. (2014). Ensuring access to electricity and minimum basic electricity needs as a goal for the post-MDG development agenda after 2015. Energy for Sustainable Development, 19, 29–38. https://doi.org/https://doi.org/10.1016/j.esd.2013.11.005
  44. Sianturi, R. S., Kusuma, S. H., Farikha, N., Zubaidah, A. F., Zakina, N., Astuti, S. C., & Amalia, F. (2023). Determining Regional Infrastructure Development Priorities in East Java Province. IOP Conference Series: Earth and Environmental Science, 1186(1). https://doi.org/10.1088/1755-1315/1186/1/012021
  45. Song, Y., Shahzad, U., & Paramati, S. R. (2023). Impact of energy infrastructure investments on renewable electricity generation in major Asian developing economies. Australian Economic Papers, 62(1), 1–23. https://doi.org/https://doi.org/10.1111/1467-8454.12282
  46. Tackie, D. N. (2021). An examination of poverty: Dimensions, causes, and solutions. Journal of Rural Social Sciences, 36(2), 1–25.
  47. Taherdoost, H., & Madanchian, M. (2023). Analytic Network Process (ANP) Method: A Comprehensive Review of Applications, Advantages, and Limitations. Journal of Data Science and Intelligent Systems, 1. https://doi.org/10.47852/bonviewJDSIS3202885
  48. Taruno, H. T. (2019). Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018. The Indonesian Journal of Planning and Development; Vol 4, No 2 (2019): October 2019DO - 10.14710/Alj.V%vi%i.79-87 .
  49. Tiwari, A. K., Eapen, L. M., & Nair, S. R. (2021). Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods. Energy Economics, 94, 105064. https://doi.org/https://doi.org/10.1016/j.eneco.2020.105064
  50. Wang, D., Xu, L., & Du, J. (2023). The direct and indirect spatial spillover effects of infrastructure on urban green and smart development. Frontiers in Environmental Science, 11(July), 1–17. https://doi.org/10.3389/fenvs.2023.1197048
  51. Yani, A., Restiatun, R., & Suradi, R. (2022). Poverty Rates and The Factors Influencing Poverty Alleviation: A Case Study in The Province of West Kalimantan, Indonesia. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 17(1), 23. https://doi.org/10.24269/ekuilibrium.v17i1.4071

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.