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Abstract
This study examines the underexplored relationship between religiosity and household energy consumption, applying religious behavior theory to energy economics in Indonesia—the world’s largest Muslim-majority nation. While traditional models focus on socioeconomic determinants, this paper investigates how Islamic values influence electricity consumption, explicitly addressing the inherent endogeneity of self-reported religiosity. Utilizing data from the Indonesian Family Life Survey (IFLS-5) comprising 21,023 Muslim households, we employ a two-stage least squares (2SLS) instrumental variable approach, proxying religiosity through ritual frequency and religious practices to overcome omitted variable and self-selection biases. The empirical results reveal a robust, statistically significant negative relationship between higher levels of religiosity and household electricity expenditure. This finding aligns with the theoretical framework that religious tenets foster moderation, self-control, and environmental stewardship. The results remain resilient across extensive sensitivity analyses and alternative model specifications. Culturally, these findings imply that faith-based institutions and religious leaders are powerful, cost-effective conduits for behavioral energy conservation. Integrating moral paradigms into national climate strategies offers a potent, localized mechanism to complement standard efficiency policies and accelerate carbon emission reductions in emerging Muslim-majority economies.
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References
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- Anwar, M. (2025). Investigating the Influence of Islamic Values, Environmental knowledge and Environmental Concerns on Attitudes and Electric Vehicle Adoption Intentions. International Journal of Ethics and Systems, 41(1), 89-108. https://doi.org/10.1108/ijoes-09-2024-0300
- Arli, D., Pentecost, R. D., & Thaichon, P. (2021). Does Religion make Consumers more Environmentally Friendly? Marketing Intellegence & Planning, 39(8), 1024-1041. https://doi.org/10.1108/MIP-09-2020-0404
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- Azzi, C., & Ehrenberg, R. (1975). Household Allocation of Time and Church Attendance. Journal of Political Economy, 83(1), 27-56. https://doi.org/10.1086/260305
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- Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. McGraw-Hill Education Publisher.
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- Huang, W.-H. (2015). The Determinants of Household Electricity Consumption in Taiwan: Evidence from Quantile Regression. Energy, 87, 120-133. https://doi.org/10.1016/j.energy.2015.04.101
- Iannaccone, L. R. (1998). Introduction to the Economics of Religion. Journal of Economic Literature, 36(3), 1465-1495. https://www.jstor.org/stable/2564806
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- Poddar, P., Pal, D., & Chatterjee, S. (2021). Moving Up the Energy Ladder: does Socio-religious Status Matter?. Population and Environment, 42(3), 325-359. https://doi.org/10.1007/S11111-020-00365-3
- Rahman, M. M., Rahman, M. M., Rahman, M. M., & Masud, M. A. K. (2021). The impact of Trade Openness on the Cost of Financial Intermediation and Bank Performance: Evidence from BRICS Countries. International Journal of Emerging Markets, 18(10), 3550-3587. https://doi.org/10.1108/IJOEM-04-2021-0498
- Sena, B., Zaki, S. A., Rijal, H. B., Ardila-Rey, J. A., Yusoff, N. M., Yakub, F., Ridwan, M. K., & Muhammad-Sukki, F. (2021). Determinant Factors of Electricity Consumption for a Malaysian Household Based on a Field Survey. Sustainability, 13(2), 818. https://doi.org/10.3390/su13020818
- Tete, K. H. S., Soro, Y. M., Coulibaly, S. F. A., Jones, R. V., & Sidibé, S. D. S. (2024). Determinants of Urban Residential Electricity Consumption in Burkina Faso: A Study of Dwelling, Household, Socio-economic and Appliance-related Factors. Buildings, 14(3), 683. https://doi.org/10.3390/buildings14030683
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References
Ampofo, A., & Mabefam, M. G. (2021). Religiosity and Energy Poverty: Empirical Evidence Across Countries. Energy Economics, 102, 105463. https://doi.org/10.1016/j.eneco.2021.105463
Anwar, M. (2025). Investigating the Influence of Islamic Values, Environmental knowledge and Environmental Concerns on Attitudes and Electric Vehicle Adoption Intentions. International Journal of Ethics and Systems, 41(1), 89-108. https://doi.org/10.1108/ijoes-09-2024-0300
Arli, D., Pentecost, R. D., & Thaichon, P. (2021). Does Religion make Consumers more Environmentally Friendly? Marketing Intellegence & Planning, 39(8), 1024-1041. https://doi.org/10.1108/MIP-09-2020-0404
Aslam, A., & Ahmad, E. (2023). Untangling Electricity Demand Elasticities: Insights from Heterogeneous Household Groups in Pakistan. Energy, 282, 128827. https://doi.org/10.1016/j.energy.2023.128827
Azzi, C., & Ehrenberg, R. (1975). Household Allocation of Time and Church Attendance. Journal of Political Economy, 83(1), 27-56. https://doi.org/10.1086/260305
ClientEarth Communications. (2024, January 24). Our Groundbreaking Case Against Shell’s Board of Directors Comes to an End. ClientEarth. https://www.clientearth.org/latest/news/we-re-taking-legal-action-against-shell-s-board-for-mismanaging-climate-risk/
Dong, J., Ren, Y., & Glauben, T. (2024). Gospel or Curse: The Impact of Religious Beliefs on Energy Poverty in Rural China. Humanities & Social Sciences Communications, 11, 641. https://doi.org/10.1057/s41599-024-03119-w
Dong, Y., Coleman, M., & Miller, S. A. (2021). Greenhouse Gas Emissions from Air Conditioning and Refrigeration Service Expansion in Developing Countries. Annual Review of Environment and Resources, 46(1), 59-83. https://doi.org/10.1146/annurev-environ-012220-034103
Durbin, J. (1954). Errors in Variables. Revue de l'Institut International de Statistique / Review of the International Statistical Institute, 22(1/3), 23-32. https://doi.org/10.2307/1401917
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. McGraw-Hill Education Publisher.
Halim, M. A., & Rahman, M. M. (2022). The Effect of Taxation on Sustainable Development Goals: Evidence from Emerging Countries. Heliyon, 8(9), e10512. https://doi.org/10.1016/j.heliyon.2022.e10512
Harrell, G. D. (1986). Consumer Behavior. Harcourt Brace Jovanovich.
Hassan, M., Mahmood, Z., & Khakwani, I. (2025). Impact of Religiosity on Pakistani Youth Green Purchase Intensions and Behavior: Extending Theory of Planned Behavior. Journal of Islamic Marketing, 16(1), 1-25. https://doi.org/10.1108/JIMA-03-2023-0095
Huang, W.-H. (2015). The Determinants of Household Electricity Consumption in Taiwan: Evidence from Quantile Regression. Energy, 87, 120-133. https://doi.org/10.1016/j.energy.2015.04.101
Iannaccone, L. R. (1998). Introduction to the Economics of Religion. Journal of Economic Literature, 36(3), 1465-1495. https://www.jstor.org/stable/2564806
International Energy Agency. (2024). World Energy Outlook 2024. https://www.iea.org/reports/world-energy-outlook-2024
Kermani, B. M. M., Mirzaei, H., Kolahi, M., & Kermani, M. (2023). Sociological Explanation of Factors Affecting Households Energy Consumption in Iran [Preprint]. Research Square. https://doi.org/10.21203/rs.3.rs-3037528/v1
Kwakwa, P. A., Alhassan, H., Aboagye, S., & Asale, M. A. (2024). Electricity Conservation intention among university Students in Northern Ghana: An Assessment of the Drivers for Some Electrical Appliances. Cleaner and Responsible Consumption, 12, 100171. https://doi.org/10.1016/j.clrc.2024.100171
Leslie, G. W., Pourkhanali, A., & Roger, G. (2022). Electricity Consumption, Ethnic Origin and Religion. Energy Economics, 114, 106249. https://doi.org/10.1016/j.eneco.2022.106249
Lu, X., & White, H. (2014). Robustness Checks and Robustness tests in Applied Economics. Journal of Econometrics, 178(1), 194-206. https://doi.org/10.1016/j.jeconom.2013.08.016
Martin, D. (1993). A General Theory of Secularization. Gregg Revivals Publisher.
Minton, E., Xie, J., Gurel-Atay, E., & Kahle, L. R. (2018). Greening Up Because of God: The Relations among Religion, Sustainable Consumption, and Subjective Well‐Being. International Journal of Consumer Studies, 42(6), 655-663. https://doi.org/10.1111/ijcs.12449
Najeeb, A., Sridharan, S., Rao, A. B., Agnihotri, S. B., & Mishra, V. (2024). Determinants of residential electricity consumption in South, East and South East Asia: A systematic review. Renewable and Sustainable Energy Reviews, 198, 114400. https://doi.org/10.1016/j.rser.2024.114400
Poddar, P., Pal, D., & Chatterjee, S. (2021). Moving Up the Energy Ladder: does Socio-religious Status Matter?. Population and Environment, 42(3), 325-359. https://doi.org/10.1007/S11111-020-00365-3
Rahman, M. M., Rahman, M. M., Rahman, M. M., & Masud, M. A. K. (2021). The impact of Trade Openness on the Cost of Financial Intermediation and Bank Performance: Evidence from BRICS Countries. International Journal of Emerging Markets, 18(10), 3550-3587. https://doi.org/10.1108/IJOEM-04-2021-0498
Sena, B., Zaki, S. A., Rijal, H. B., Ardila-Rey, J. A., Yusoff, N. M., Yakub, F., Ridwan, M. K., & Muhammad-Sukki, F. (2021). Determinant Factors of Electricity Consumption for a Malaysian Household Based on a Field Survey. Sustainability, 13(2), 818. https://doi.org/10.3390/su13020818
Tete, K. H. S., Soro, Y. M., Coulibaly, S. F. A., Jones, R. V., & Sidibé, S. D. S. (2024). Determinants of Urban Residential Electricity Consumption in Burkina Faso: A Study of Dwelling, Household, Socio-economic and Appliance-related Factors. Buildings, 14(3), 683. https://doi.org/10.3390/buildings14030683
Wu, D. M. (1973). Alternative Tests of Independence between Stochastic Regressors and Disturbances. Econometrica, 41(4), 733-750. https://doi.org/10.2307/1914093
