Estimating the Impact of Energy Consumption on Carbon Emissions Using Environmental Kuznets Curve

Abstract

The objective of this study is to examine the equilibrium relationship in the short and long term of energy consumption in Indonesia (ECI) and carbon dioxide emissions in Indonesia (CO 2 EI) for the period of 1980-2014. The dependent variable is environment and CO 2 emissions have been selected as an indicator for this variable while the independent variable in this study is energy consumption. In this study, quantitative method-based methodology has been selected. The quantitative method enable researcher to examine the relationship objectively using numbers, digits, and ratings as empirical evidence. In addition, the researcher used deductive reasoning to present the arguments. Deductive approach was selected because the research aims to test Environmental Kuznets Curve hypotheses and test it within the context of Indonesia and assess whether there is long term relationship between ECM and CO 2 EM. In order to analyse the panel data, this study used statistical techniques. Firstly, descriptive statistics has been used to assess the central tendency of data using mean and standard deviation. In addition, Dickey Fuller test was performed to check stationarity in the data. Finally, ARDL model was developed to check the impact of independent variables on dependent variable. Through time series models this study found that there is long-term equilibrium relationship between CO 2 E and EC. Furthermore, it can be concluded that there is a short-term relationship between the variables also. Finally, in general the results show that EC positively influences CO 2 E in the short and long term.

Investigation of the Effect of Energy Consumption on Carbon Emissions in Azerbaijan in the Context of the Environmental Kuznets Curve

“…The study by Alanazi et al (2020) examined the short-and longterm balancing relationship between energy consumption (ECI) and carbon dioxide emissions (CO 2 EI) in Indonesia from 1980 to 2014. Yuping et al (2021) examined the dynamic effects of globalization, non-renewable energy consumption, renewable energy consumption, and economic growth on carbon dioxide emission levels in Argentina from 1970 to 2018.…”