An econometric analysis of energy input in the agricultural sector and its impact on cot emissions: a case of Indonesia

This study analyzes the impact of the energy input on the total production in the agricultural sector in Indonesia by using an econometric approach. Unlike in other studies, the total production in this study was measured in monetary unit (i.e., value added). The results show that if the energy input in the agricultural sector was increased by 1%, the agricultural productivity (the value added) would increase by 0.45%. This study also examines the factors which affect the total CO2 emissions due to the energy use in the sector by applying the extended Kaya model during 1990-2005. The results show that the value added was found to increase the total CO2 emissions during the periods of 1990-1995, 1996-2000, and 2001-2005. The energy intensity effect also contributed towards increasing CO2 emissions at each period except at the period of 2001 2005, while the contribution of the energy mix effect to the total CO2 emissions was neglible at all periods.