A Deep Dive into Indonesia's CO2 Emissions: The Role of Energy Consumption, Economic Growth and Natural Disasters

Authors

  • Ghalieb Mutig Idroes Energy and Green Economics Unit, Graha Primera Saintifika, Aceh Besar 23371, Indonesia
  • Irsan Hardi Economic Modeling and Data Analytics Unit, Graha Primera Saintifika, Aceh Besar 23371, Indonesia
  • Teuku Rizky Noviandy Department of Informatics, Faculty of Mathematics and Natural Sciences, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia
  • Novi Reandy Sasmita Department of Statistics, Faculty of Mathematics and Natural Sciences, Universitas Syiah Kuala, Banda Aceh 23111
  • Iin Shabrina Hilal Department of Civil Engineering, Faculty of Engineering, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia
  • Fitranto Kusumo Centre for Technology in Water and Wastewater, Faculty of Engineering and Information Technology, University of Technology Sydney, Ultimo 2007 NSW Australia
  • Rinaldi Idroes Department of Chemistry, Faculty of Mathematics and Natural Sciences, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia

DOI:

https://doi.org/10.60084/eje.v1i2.115

Keywords:

Climate change, CO2 emissions, Economic growth, Non-renewable energy consumption, Renewable energy consumption, Natural disasters, ARDL

Abstract

This study examines the influence of non-renewable energy consumption, renewable energy consumption, economic growth, and natural disasters on Indonesia's carbon dioxide (CO2) emissions spanning from 1980 to 2021. The Autoregressive Distributed Lag (ARDL) model is employed, with supplementary robustness checks utilizing Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegration Regression (CCR). The findings reveal that economic growth, along with non-renewable and renewable energy consumption, significantly affects CO2 emissions in both the short and long term. Robustness checks confirm the positive impact of non-renewable energy consumption and economic growth, while renewable energy consumption has a negative effect on CO2 emissions. Moreover, natural disasters exhibit a positive short-term impact on CO2 emissions. Pairwise Granger causality results further underscore the intricate relationships between the variables. To mitigate climate change and curb CO2 emissions in Indonesia, the study recommends implementing policies that foster sustainable economic development, encourage the adoption of renewable energy, and enhance disaster resilience.

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References

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2023-11-20

How to Cite

Idroes, G. M., Hardi, I., Noviandy, T. R., Sasmita, N. R., Hilal, I. S., Kusumo, F. and Idroes, R. (2023) “A Deep Dive into Indonesia’s CO2 Emissions: The Role of Energy Consumption, Economic Growth and Natural Disasters”, Ekonomikalia Journal of Economics, 1(2), pp. 69–81. doi: 10.60084/eje.v1i2.115.

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Vol. 1 No. 2 (2023): November 2023

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Copyright (c) 2023 Ghalieb Mutig Idroes, Irsan Hardi, Teuku Rizky Noviandy, Novi Reandy Sasmita, Iin Shabrina Hilal, Fitranto Kusumo, Rinaldi Idroes

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