Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia
Energy constraints significantly impact household welfare and the quality of life. Developing countries, such as Indonesia, continue to face challenges in meeting household energy needs. This study investigates the impact of microcredit access on Indonesian households' energy consumption. Under...
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| Language: | English |
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Elsevier
2025-06-01
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| Series: | Energy Nexus |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2772427125000877 |
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| author | Diana Setyawati Djoni Hartono |
| author_facet | Diana Setyawati Djoni Hartono |
| author_sort | Diana Setyawati |
| collection | DOAJ |
| description | Energy constraints significantly impact household welfare and the quality of life. Developing countries, such as Indonesia, continue to face challenges in meeting household energy needs. This study investigates the impact of microcredit access on Indonesian households' energy consumption. Understanding this relationship is essential for insights into how microcredit can affect energy use in the context of developing countries. Using data from 2019 (pre-pandemic) and 2021 (during the pandemic), this study uniquely bridges a gap in the literature by analyzing both pre-pandemic and pandemic periods. This offers novel insights into how microcredit programs respond to dynamic economic conditions. We employ the two-stage least squares (2SLS) method with instrumental variables to address potential causality issues. Our findings reveal a positive relationship between access to microcredit and household energy consumption expenditures. By comparing pre-pandemic and pandemic periods, the study highlights how economic conditions affect the effectiveness of microcredit programs. Moreover, regional analysis reveals variations in the impact of microcredit across Indonesia. This study contributes to understanding how microcredit programs affect household energy consumption, taking into account economic conditions and spatial effects. Our findings offer policy implications for enhancing household energy consumption through microcredit programs. Policymakers should consider regional needs and evolving economic conditions to optimize the effectiveness of microcredit programs. |
| format | Article |
| id | doaj-art-35c79500e7924832b8aa51aa6c90f77c |
| institution | DOAJ |
| issn | 2772-4271 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Nexus |
| spelling | doaj-art-35c79500e7924832b8aa51aa6c90f77c2025-08-20T03:21:27ZengElsevierEnergy Nexus2772-42712025-06-011810044610.1016/j.nexus.2025.100446Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in IndonesiaDiana Setyawati0Djoni Hartono1Department of Economics, Faculty Economics and Business, Universitas Indonesia, Depok, Indonesia; Ministry of Finance, Republic of Indonesia, Jakarta, Indonesia; Corresponding author: Directorate General of Budget, Ministry of Finance Republic of Indonesia, Jakarta, Indonesia. Address: Directorate General of Budget, Ministry of Finance Republic of Indonesia. Sutikno Slamet Building, Dr Wahidin Street No.1, 16710, Jakarta, Indonesia.Department of Economics, Faculty Economics and Business, Universitas Indonesia, Depok, Indonesia; Research Cluster on Energy Modelling and Regional Analysis, Department of Economics, Faculty Economics and Business, Universitas Indonesia, Depok, IndonesiaEnergy constraints significantly impact household welfare and the quality of life. Developing countries, such as Indonesia, continue to face challenges in meeting household energy needs. This study investigates the impact of microcredit access on Indonesian households' energy consumption. Understanding this relationship is essential for insights into how microcredit can affect energy use in the context of developing countries. Using data from 2019 (pre-pandemic) and 2021 (during the pandemic), this study uniquely bridges a gap in the literature by analyzing both pre-pandemic and pandemic periods. This offers novel insights into how microcredit programs respond to dynamic economic conditions. We employ the two-stage least squares (2SLS) method with instrumental variables to address potential causality issues. Our findings reveal a positive relationship between access to microcredit and household energy consumption expenditures. By comparing pre-pandemic and pandemic periods, the study highlights how economic conditions affect the effectiveness of microcredit programs. Moreover, regional analysis reveals variations in the impact of microcredit across Indonesia. This study contributes to understanding how microcredit programs affect household energy consumption, taking into account economic conditions and spatial effects. Our findings offer policy implications for enhancing household energy consumption through microcredit programs. Policymakers should consider regional needs and evolving economic conditions to optimize the effectiveness of microcredit programs.http://www.sciencedirect.com/science/article/pii/S2772427125000877C36D12G51 |
| spellingShingle | Diana Setyawati Djoni Hartono Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia Energy Nexus C36 D12 G51 |
| title | Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia |
| title_full | Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia |
| title_fullStr | Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia |
| title_full_unstemmed | Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia |
| title_short | Microcredit and household energy consumption: Exploring the impact of The Kredit Usaha Rakyat (KUR) program in Indonesia |
| title_sort | microcredit and household energy consumption exploring the impact of the kredit usaha rakyat kur program in indonesia |
| topic | C36 D12 G51 |
| url | http://www.sciencedirect.com/science/article/pii/S2772427125000877 |
| work_keys_str_mv | AT dianasetyawati microcreditandhouseholdenergyconsumptionexploringtheimpactofthekreditusaharakyatkurprograminindonesia AT djonihartono microcreditandhouseholdenergyconsumptionexploringtheimpactofthekreditusaharakyatkurprograminindonesia |