| dc.description.abstract | Reducing of subsidies would increase energy prices that affect the level of energy consumption and consumer welfare. Analyze the behavior of households in Java in consuming energy was the aim of this study, this include their price elasticity, income elasticity, and cross elasticity of energy commodities. The methode of this study is the linear approximate version of the almost ideal demand system (LA-AIDS) model using data from the National Socio-Economic Survey (SUSENAS) covering the period from 2007 to 2010 for household in Java along with the kerosene’s conversion to gas program undertaken by the government. The own price elasticities of energy (except for the electricity) showed that they are elastic so the increase of their price will effectively reducing its consumption. While the cross elasticities showed that the energy comodities are substitute each other, but in very low level. The kerosene’s conversion to gas has been shifting household kerosene consumption in Java into commodities LPG, city gas, and coal. | en |
