The effect of CO₂emissions in Indonesia

Abstract

This study was conducted to examine the effect of the variable use of CO2 emission gas and export variables on Indonesia’s economic growth. The data used in this study are time series data from the two variables for the period 2004 to 2019. All data were obtained from the world bank and accessed through the www.data.worldbank.org. The data analysis method used in this study uses an autoregressive distributed lag (ARDL) model approach. The ARDL model is used to examine the short-term and long-term effects of CO2 gas emission variables and export variables. The results of the study found that the variable use of CO2 emission gas in the short term had a positive and insignificant effect on economic growth. The export variable has a significant positive effect on economic growth. Meanwhile, in the long term, the variable use of CO2 emission gas and the export variable has no effect on Indonesia’s economic growth. This finding shows that Indonesia’s economic growth is still determined by exports, but in the long term the government must work harder to increase its exports. In addition, export activities must not lead to the use of excessive CO2 emissions.

Examining the drivers of CO2 Emission: Evidence from Indonesia

“…The increased use of fossil energy and combustion in the agricultural sector has contributed significantly to environmental deterioration and rising CO2 emissions in Peru [18]. [19] said government requires the use of CO2 to increase the sustainability of its development. [16] also found that rapid urbanization with deforestation significantly increased CO2 emissions and climate change in Malaysia.…”