Electricity subsidy reform in Indonesia: Demand-side effects on electricity use
Indonesia's budget has for years been burdened by large subsidies for electricity consumption. A series of recent reforms has delivered a substantial reduction in these subsidies. In this paper we estimate demand-side effects of these reforms on electricity use. Our analysis utilizes a three-dimensional dataset covering six consumer groups, 16 regions, and 1992–2015. We control for various fixed effects, and use an instrumental variable approach. Our estimates suggest that subsidy reductions...[Show more]
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