Track: Energy

Abstract

Literacy is crucial because it is a gateway for information, knowledge, and technological mastery. Literacy can be a deciding factor in someone working to find a better income. So, electricity is a basic requirement for at least household lighting. but with the development of technology making electricity can be used for various kinds of equipment. Poverty becomes a very complex problem that has broad impacts. Poverty destroys purchasing power, decreases human quality, and decreases economic welfare. Therefore, this paper wants to test how literacy and electricity can fight poverty. The econometrics model in this study is the effect of literacy and electricity on poverty in the Indonesian Territory. This study uses secondary data cross section as many as 501 districts and cities in Indonesia. The analytical method in this study is Robust Least Squared Model. The results of the analysis of this study conclude that an increase in literacy and electricity can significantly reduce poverty. Every 1% increase in literacy will reduce the poverty gap index by 0.066, then every 1% increase in household access to electricity will reduce the poverty gap index by 0.052. This study suggests that the policy of literacy program and fulfilling electricity is crucial to combating poverty in all regions in Indonesia.