Applying Econometric Model Differencing to Analyze the Impact of Energy Policy on Economic Inequality and Social Welfare

Penerapan Model Ekonometrika Differencing dalam Analisis Dampak Kebijakan Energi terhadap Ketimpangan Ekonomi dan Kesejahteraan Sosial

Abstract

This study aims to analyze the impact of energy policy on economic inequality and social welfare using Econometric Model Differencing. The main focus is to analyze and understand the impact of energy policy on economic inequality and social welfare before and after it is implemented. This study uses a quantitative approach with Econometric Model Differencing to simulate the impact of various energy policy scenarios. This model is often used in econometrics to evaluate the impact of a policy or intervention by comparing the change in the treatment group with the control group before and after the treatment is implemented. The paired t-test analysis is often used to assess significant differences between two specific times or conditions, such as before and after policy implementation. The results show that there is a significant difference between the Economic Inequality Indicator measured by the percentage of population below the poverty line before and after the energy policy, but there is no significant difference between the Economic Inequality Indicator measured by the Gini Coefficient before and after the energy policy. In terms of the Social Welfare Indicator, overall there is a significant difference before and after the energy policy. This research is expected to contribute theoretically to the use of Econometric Model Differencing in energy policy. Practically, the results are expected to provide effective and sustainable policy recommendations.