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THE DAMAGING GROWTH: AN EMPIRIC EVIDENCE OF ENVIRONMENTAL KUZNETS CURVE IN INDONESIA

H. Sasana

Published 2019 in International Journal of Energy Economics and Policy

ABSTRACT

This study examines the short-run and long-run relationships between economic growth, carbon dioxide (CO 2 ) emissions and energy consumption within a sample period of 1990-2016. The study used autoregressive distributed lag approach to test the cointegration relationship and Granger vector error correction model causality test to investigate the direction of causality. This study does not support the hypothetical relationship (environmental Kuznets curve) for a significance level of 5%. The long-run test of Granger causality shows that there is a two-way causal relationship of economic growth, CO 2 emissions, and energy consumption. This result indicates that a reduction in energy consumption is an effective way to control CO 2 emissions but will simultaneously impede economic growth. Therefore, setting suitable policy related to efficient consumptions of energy resources and renewable energy resources is necessary.

PUBLICATION RECORD

  • Publication year

    2019

  • Venue

    International Journal of Energy Economics and Policy

  • Publication date

    2019-09-01

  • Fields of study

    Geography, Economics, Environmental Science

  • Identifiers
    DOI 10.32479/IJEEP.7816
  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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