Title Page
Contents
ABSTRACT 7
I. OVERALL INTRODUCTION 10
II. CAUSALITY ANALYSIS OF COAL CONSUMPTION AND ECONOMIC GROWTH IN INDONESIA 12
1. Introduction 12
2. Methodology 14
2.1. Granger-causality and stationarity 14
2.2. Co-integration 15
2.3. Error-correction model 16
3. Data and results 17
3.1. Data 18
3.2. Results of unit roots and co-integration tests 18
3.3. Results of error-correction model and Granger-causality tests 20
4. Concluding remarks 22
III. MEASUREMENT OF THE ECONOMIC BENEFITS FROM SWITCHING FOSSIL- FUEL ENERGY TO BIOMASS ENERGY IN RESIDENTIAL SECTOR 24
1. Introduction 24
2. Literature review on biomass energy 26
3. Methodology 28
3.1. Measurement method: CV 28
3.2. Questionnaire design 29
3.3. Elicitation method 31
3.4. Payment vehicle 32
3.5. The OOHBDC model 33
3.6. The spike model 35
4. Results and discussion 36
5. Concluding remarks 41
IV. OVERALL CONCLUSION 43
REFERENCES 45
APPENDIX 50
국문초록 52
Survey 54
Table II-1. Results of Phillips-Perron (PP) unit root tests 19
Table II-2. Results of Johansen co-integration tests 20
Table II-3. Results of causality tests based on the error correction model 21
Table III-1. Distribution of responses by bid amount. 37
Table III-2. Definitions and sample statistics of variables. 38
Table III-3. Estimation results without covariates and with covariates. 39
Table III-4. Willingness to pay(WTP) estimate for switching energy from fossil-fuel to biomass. 40