Relationships between Urbanization, Economic Growth, Energy Consumption, and CO2Emissions: Empirical Evidence from Indonesia

Susetyo, Didik (2021) Relationships between Urbanization, Economic Growth, Energy Consumption, and CO2Emissions: Empirical Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8 (3). pp. 79-90. ISSN 2288-4637

Text 2021 (03) Bashir et al Urban, EconGrowth, Energy Cons, and COEmissions_ Empirical Evidence from Indonesia.pdf Download (1MB)

Abstract

This study aims to investigate the relationship between urbanization, economic growth, energy consumption, and CO2 emissions in Indonesia. The data used in the study are time-series data for the period 1985–2017; the data utilized are sourced from World Development Indicators obtained on the World Bank database. The method uses a quantitative approach that applies the vector error correction model based on the Granger causality test. The empirical results reveal that, in the short run, there is evidence that urbanization and energy consumption can causes CO2 emissions, and they also prove that urbanization can cause energy consumption. Also, other findings prove the existence of long�run relationships flowing from energy consumption, economic growth, and CO2 emissions toward urbanization, as well as the existence of the relationship flowing from urbanization, economic growth, and CO2 emissions towards energy consumption. The results of testing the relationship between economic growth and CO2 emissions reveal that the environmental Kuznets curve hypothesis is proven in Indonesia. Thus, policies are needed to limit the impact of urbanization through high awareness-raising to maintain environmental quality and greater use of energy. Also, energy conservation policies are needed in all sectors, especially the electricity, industry, and transportation sectors.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory > HB71-74 Economics as a science. Relation to other subjects
Divisions:	01-Faculty of Economics > 60001-Economics (S3)
Depositing User:	Prof. Dr. Didik Susetyo, SE., MSi
Date Deposited:	09 May 2023 14:37
Last Modified:	09 May 2023 14:37
URI:	http://repository.unsri.ac.id/id/eprint/99177

Actions (login required)

View Item