RESEARCH METHODOLOGY
ASSIGNMENT 03
RESEARCH HYPOTHESIS AND METHODOLOGY
By
NURUL SYAFIRA HATTA – 23621027
FARDAN ZEDA ACHMADI YUDA – 23621029
WAHYU CAKRA NUGRAHA – 23621037
AEROSPACE ENGINEERING DEPARTMENT
FACULTY OF MECHANICAL AND AEROSPACE ENGINEERING
INSTITUT TEKNOLOGI BANDUNG
2021
List of Contents
1. Research Background ............................................................................................... 2
2. Hypothesis .................................................................................................................. 3
3. Research Methodology ............................................................................................. 4
References ........................................................................................................................ 6
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1. Research Background
Topic: Impact useful Low Carbon Society and Renewable Energy Policy to Indonesian
Economic cycle.
In the previous assignment, we reviewed the acceptance and development of research on “Low
Carbon” in several countries. With the addition of several new discoveries that are ongoing at the
Research of Renewable Energy for the Low Carbon Society in the future.
Many countries are already involved in a low-carbon implementation process strategy. The Federal
State of Belgium which has been researching the socio-economic impacts of the low-carbon
transition. Meanwhile, in Japan, a study was conducted to assess the impact of willingness to pay
(WTP) for renewable energy (RE), which is generally covered by user fees. An investment
evaluation was conducted to adopt RE as a national target spread across every prefecture of Japan.
Japan has simulated WTP for RE during 2015-2030 where investment in subsidies is needed to
adopt renewable resources to meet national needs. The targets and future renewable potential in
each prefecture of Japan are evaluated based on the annual gap in production costs and the
maximum total WTP for RE. Several variable findings were obtained, firstly, demographic
variables, how income and gender have a significant impact on the median value of WTP money
is expected to cause median variations in different prefectures. The policy is to increase the price
of electricity for all users with the same additional cost. This causes increasing dissatisfaction for
some users because WTP varies from user to user. As such, most would suggest applying a
surcharge rather than a fixed price to RE. The second thing is based on WTP media estimates and
acceptability curve simulations, the maximum total WTP for each Japanese prefecture is calculated
and is predicted to increase significantly with income growth, especially economic growth. Finally,
PAPs are expected to contribute greatly to the reduction of investment subsidies required in the
adoption of RE to meet Japan's target capacity. In particular, under the business as usual (BAU)
scenario, high-income prefectures will have a higher WTP. This allows the government to reduce
or eliminate renewable energy investment in the prefecture as production costs can be fully covered
by the user's WTP. In contrast to prefectures with low incomes, the gap between production costs
and WTP creates dissatisfaction for users. For this reason, the government increases subsidies for
the renewable energy sector to ensure its development continues. In addition to economic barriers,
there is still a big obstacle, namely technology. Although a prefecture has great new energy
potential, it is hampered by technological advances so that the available resources are less
effective.
Norway is gradually eliminating oil exports and focusing on hydrogen transition by working with
neighbour countries to build an international hydrogen market. Hydrogen renewable energy is a
prerequisite for the decarbonization of the transport and industrial sectors in Norway and is also
key to maintaining a high level of economic activity.
On the other hand, non-OPC binder is used as a base stabilizer for cement-free roads based on the
concept of a hybrid material between pozzolanic materials and alkaline activated materials. NonOPC with a hybrid material concept has great potential to be a clean product in the construction
and rehabilitation of the road to a low-carbon era.
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The impact of the economic crisis from the simulation results shows that high carbon energy is
more resistant to economic crisis than low carbon energy. Various policy implications are also
given to policy makers with different technical levels and economic status. First, for countries or
regions experiencing economic crises or depressions, a low-carbon transition is unattainable.
Second, for countries or regions that have enriched the supply of resources but insufficient energy
technology, technological improvements in energy efficiency are a top priority before
implementing a low-carbon transition. Finally, for countries or regions that have achieved a high
level of energy technology and low energy consumption, regulations on high carbon energy are an
effective way to promote a low carbon transition.
In Indonesia itself is ongoing economic development that refers to low carbon. Where the
development paradigm is in line with the global commitment to reduce the level of carbon
emissions. To support this, the government has made various policies to encourage the
development of carbon lowlands. A strong and sustainable transformation strategy is needed by
considering resources, funds, and technology. Cooperation is needed from the government and
related parties in order to achieve Indonesia's targets with clean energy. It's been done a lot now.
2. Hypotheses:
The hypothesis that we can conclude to answer the Research Question above is
1. The Effect and impact of WTP on acceptance of Low Carbon Research and
Implementation in Indonesia to assure support of Renewable Energy Policy
The application and use of WTP in Indonesian society to ensure the acceptance and
sustainability of this project, which is well known, that the effects of global warming affect
all sectors, either health, economy and many other factors. This WTP is a filter for public
interest to be in line with the state's focus on renewable energy development. These results
provide useful information for policy-makers responsible for planning flexible energy
polices for shifting towards greater use of renewable energy. To support this, the
government will make various policies to encourage low-carbon development inside the
country as well as relying on existing inventions.
2. The implementation of the Low Carbon Policy will reduce the cost of using crude oil
and coal as base so that it switches to Renewable Energy
Implementation of a Low Carbon policy that has been supported by all sectors and elements
in a country, especially in sustainability for future life where Indonesia is a country that is
vulnerable to the impact of Climate Change and can affect the abundant ecosystems in
Indonesia. Although Indonesia is known as one of the largest coal producers in the world,
its use is very influential on climate change. and also from the dwindling availability of
coal and crude oil, where a replacement is needed which of course must be more
environmentally friendly. With this implementation, it is also hoped that the results will be
in line with economic finance in Indonesia
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3. Low Carbon Policy can reduce and inhibit global warming that damages Earth's
atmosphere and environment to support 17 Sustainable Development goals of United
Nations
As one of the countries under the UN, of course, Indonesia must implement policies that
support UN and their global commitment programs for the sustainability of life for human
convenience in the future. By ensuring the support of all elements of society, to ensure that
inventions related to renewable energy that support the Low Carbon Society are not only
applied in Indonesia, but also discovered by the nation itself.
3. Research Methodolgy
For the concept clarification, the paper is hereby ordered as follows. First, a model
simulating Willingness to pay (WTP) and the acceptability curve of simulated WTP were
developed to estimate the maximum total WTP under various socioeconomic conditions. In this
study will apply meta-analysis, involving a set of statistical methods guiding the collection of prior
empirical literature. A lack of prior knowledge of renewable energy policy could have resulted in
an underestimation of actual WTP; therefore, studies selected for our analysis were limited to those
completed after 2007, which was the year in which the first renewable policy (Green Power Fund)
was established in Indonesia. Studies that included median WTP for increasing the contribution of
renewable energy to the current electricity mix were selected. WTP for nuclear power was not
included due to negative preferences for this kind of energy source on a given topic to determine
the influence factors of WTP over spatiotemporal scales. For the meta-regression analysis,
socioeconomic data were employed to identify the critical factors of WTP, including age,
population, income, education level, and renewable energy share.
In previous WTP surveys, respondents were usually asked whether they would be willing
to pay a particular price for renewable energy, and thus to choose to answer “yes” or “no”. Setting
WTP to increase means that the fraction of respondents who choose to pay a certain price for RE
(hereafter, acceptability rates) will decrease using Weibull distribution. The total WTP could be
calculated by multiplying the given WTP with the number of households who accept such given
value of WTP for RE from the acceptability curve. By the aforementioned acceptability curve, the
acceptability rate would keep a first-order equation with WTP, allowing the final quadratic fitting
of the total WTP with the estimated WTP.
Subsequently, the annual production cost for Renewable Energy (RE) was estimated under
different RE development or installed capacity scenarios. The total production cost of RE could
be calculated based on the total installed capacity and price of renewable energy. Annual amortized
cost can be determined by multiplying total production cost with an annuity factor.
Finally, the necessary investment subsidy (NS) for RE was calculated basing on the
difference between its annual production costs and the maximum total WTP. When NS exceeds 0,
other subsidies should be considered for adopting renewable energy in a given provinces, as
maximum user WTP would not cover annual costs of renewable energy. Otherwise, investment
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costs of renewable energy generation can be borne by users, meaning that subsidies are
unnecessary. The flowchart of research methodology could be seen below.
START
Calculate
WTP
Study of Literature
Problem Statement
(Research Question)
Comparative Analysis
(Using Literature)
Collected survey and
respondents of WTP
Selected and
Collected Data
(RE Policy)
Hypothesis
Result of WTP
Analysis and
Discussion
FINISH
Figure 1. Flowchart of research methodology
The conclusion of this study is an attempt to evaluate the impact of WTP on achieving
renewable energy targets in Indonesia, using a simple enough of method to be applied to the
currently available knowledge base and technology.
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References
Berger, L., Th Bréchet, J. Pestiaux, V. van Steenberghe. (2020). Case-study - The transition of
Belgium towards a low carbon society: A macroeconomic analysis fed by a participative
approach. Energy Strategy Reviews, 29, 100463.
Bualuang, Thanon, Peerapong Jitsangiam, Teewara Suwan, Ubolluk Rattanasak, Napat
Jakrawatana, Nanticha Kalapat, Hamid Nikraz. (2021). Non-OPC binder based on a hybrid
material concept for sustainable road base construction towards a low-carbon society.
Journal of Materials Research and Technology, 14, 374-391.
Che, Jianga, Xifeng Wub, Sijia Zhaoc, Hatef Madani, Yu Chen. (2020). Economic crisis impact
on low carbon transition in economy-ecosystem. Global Transitions Proceedings, 1, 7-12.
Espegren, Kari, Sigrid Damman, Paolo Pisciella, Ingeborg Graabak, Asgeir Tomasgard. (2021).
The role of hydrogen in the transition from a petroleum economy to a low-carbon society.
International Journal of Hydrogen Energy, 46, 23125-23138.
Lu, Gao. Yuki Hiruta. Shuichi Ashina. (2020). Promoting renewable energy through willingness
to pay for transition to a low carbon society in Japan. Renewable Energy, 162, 818-830.
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