The effect of economic growth and energy consumption on carbon emissions in Indonesia
List of Authors
  • Aliasuddin , Faizah Amalina

Keyword
  • economic growth, energy consumption, carbon emission, environmental Kuznets Curve, Indonesia

Abstract
  • This study aims to (i) analyze the effect of economic growth and energy consumption on carbon emissions; and (ii) investigate the Environmental Kuznets Curve (EKC) between economic growth and carbon emissions in Indonesia based on annual data between 2003 and 2019 using the Ordinary Least Square (OLS) technique. The estimation results show that economic growth has a negative and significant effect on carbon emissions; Energy consumption has a positive and significant effect on carbon emissions. Using the quadratic economic growth model, EKC does not occur in Indonesia. The curve is U-shaped so that economic growth increases and carbon emissions decrease; after reaching a certain point, carbon emissions can increase as economic growth increases. Hopefully, these findings will enable Indonesia, which has a status as a developing country and is rich in natural resources, to encourage government views and policies in an economic structure that is more environmentally friendly and low in emissions and to replace fossil fuel energy with renewable energy.

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