Karina Indah Mulyani, Djoni Hartono, Misdawita Misdawita

Mobility of non-permanent workers and energy consumption in Indonesia

Introduction

Mobility of non-permanent workers and energy consumption in indonesia. Investigate how non-permanent worker mobility (commuter, circular) in Indonesia affects energy consumption (electricity, fuel) and environmental quality, guiding sustainable development policies.

Abstract

Expensive land in urban centers encourages workers to migrate to the suburbs, creating worker mobility that increases energy consumption and worsens environmental quality. Therefore, understanding the relationship between worker mobility and energy consumption is crucial. This study evaluates the impact of worker mobility categorized as commuter and circular on energy consumption in Indonesia. We used the Extended Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model with instrumental variables (IV) on panel data from 33 provinces during the 2013–2018 period. The results show that commuter workers do not significantly affect total energy and fuel consumption, but significantly increase electricity consumption. Conversely, circular workers contribute significantly to increased total energy, fuel, and electricity consumption. Other impacts include decreased health and disruption to social life, despite the economic benefits. This study contributes to the literature on labor and energy in developing countries, particularly regarding the aspect of non-permanent workers. These findings are also relevant as a basis for formulating sustainable development policies that consider economic, social, and environmental aspects in a balanced manner.

Review

This study addresses a highly pertinent issue concerning the intersection of non-permanent worker mobility and energy consumption in a rapidly developing economy like Indonesia. The authors clearly articulate the real-world problem of urban land costs driving suburban migration, which in turn escalates energy use and environmental degradation. A significant strength of this research lies in its novel approach to disaggregate worker mobility into 'commuter' and 'circular' categories, offering a more nuanced understanding than often seen in aggregated studies. The application of the Extended STIRPAT model with instrumental variables on panel data from 33 provinces provides a robust methodological framework, suggesting a rigorous attempt to establish causality and mitigate endogeneity concerns. The findings offer valuable insights into the differential impacts of these worker types. Notably, while commuter workers primarily contribute to increased electricity consumption, circular workers demonstrate a more pervasive and significant impact across total energy, fuel, and electricity consumption. This distinction is crucial for targeted policy formulation. Furthermore, the abstract commendably extends beyond purely economic and environmental metrics by acknowledging the broader social costs, such as decreased health and disruption to social life, which juxtapose against the economic benefits of such mobility. This holistic perspective, encompassing economic, social, and environmental dimensions, enriches the study's contribution to the literature on labor and energy in developing countries, particularly concerning the under-examined aspect of non-permanent workers. While the abstract promises a robust analysis and significant contributions, a full review would benefit from a deeper dive into the specific mechanisms driving these differential energy consumption patterns. For instance, understanding *why* circular workers exhibit such a broad impact versus commuters' more focused effect on electricity could strengthen the interpretability of the results. The mention of the findings' relevance for sustainable development policies is strong, and the full paper should elaborate on the specific types of policies suggested, whether related to urban planning, public transport investment, or energy efficiency regulations. Overall, this study presents a timely and methodologically sound investigation into a critical topic, offering valuable empirical evidence and a comprehensive perspective that merits careful consideration by both academics and policymakers.

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