ECONOMY WIDE CO_2 IMPLICATIONS OF CONSIDERING IPPs IN THE INDONESIAN POWER SECTOR: AN INPUT-OUTPUT ANALYSIS

摘要

In this paper, an input-output decomposition model has been developed to examine the factors which affect the economy-wide CO? emission changes due to considering independent power producers (IPPs) in the Indonesian power sector during 2003-2017. There are four major components that affect the total economy-wide change in CO_2 emissions, i.e., fuel mix-, structural-, final demand-and joint-effects. The results show that considering IPPs in power sector planning in Indonesia would mitigate the CO_2 emissions. The CO_2 mitigations would increase if the length of contract between IPPs and the existing utility is increased. The CO_2 mitigations would increase 2.1 times higher if the duration of contract is increased from 5 to 15 years. Of the total CO_2 mitigations, the fuel mix- and structural-effects would increase the CO_2 mitigations, however, the final demand- and joint-effect would act in the opposite direction under all duration of contract cases.