IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-01-35.html
   My bibliography  Save this article

Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy

Author

Listed:
  • Muhammad Yusuf

    (Universitas Islam Negeri, Alauddin Makassar Indonesia, Indonesia)

  • Zakir Sabara

    (Universitas Muslim Indonesia, Indonesia,)

  • Ismail Suardi Wekke

    (Sekolah Tinggi Agama Islam Negeri, Sorong, Indonesia.)

Abstract

This present study examines the role of technology innovation in testing the environmental Kuznets Curve in Indonesia by taking the annual time series data over the time period of 1980 to 2017. The study used high technology exports as a proxy of technology innovation to examine the long run relationship between economic development, technology innovation and carbon dioxide emission in Indonesia. The author applied the advance econometrics to serve the purpose of investigation and therefore used the FMOLS and DOLS for assessing the presence of long-run relationship between the variables. Utilizing the framework of Kuznets Curve, the results of FMOLS and DOLS approaches confirm the valid long run relationship between technology innovation and environmental degradation in Indonesia. The empirical results indicate that technology innovation has negative and significant impact on carbon dioxide emission long run. Therefore, the findings of the study recommended that technology innovation does not only benefit for the economic development but also helps to reduce the environmental degradation in Indonesia.

Suggested Citation

  • Muhammad Yusuf & Zakir Sabara & Ismail Suardi Wekke, 2019. "Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 276-281.
    • Handle: RePEc:eco:journ2:2019-01-35
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/7230/4120
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/7230/4120
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wei-Bin Zhang, 2017. "Economic Development and Environmental Change with Endogenous Birth and Mortality Rates," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(1), pages 77-97.
    2. Mariusz Hofman, 2014. "Value Creation in the Multi-Project Environment," International Journal of Business, Economics and Management, Conscientia Beam, vol. 1(9), pages 242-252.
    3. Brooks,Chris, 2008. "RATS Handbook to Accompany Introductory Econometrics for Finance," Cambridge Books, Cambridge University Press, number 9780521896955, January.
    4. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    5. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25, 03-2014.
    6. Balcilar, Mehmet & Bonato, Matteo & Demirer, Riza & Gupta, Rangan, 2017. "The effect of investor sentiment on gold market return dynamics: Evidence from a nonparametric causality-in-quantiles approach," Resources Policy, Elsevier, vol. 51(C), pages 77-84.
    7. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    8. Chavalit Kigpiboon, 2013. "The Development of Participated Environmental Education Model for Sustainable Mangrove Forest Management on Eastern Part of Thailand," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 2(3), pages 33-49.
    9. Shahbaz, Muhammad & Zakaria, Muhammad & Shahzad, Syed Jawad Hussain & Mahalik, Mantu Kumar, 2018. "The energy consumption and economic growth nexus in top ten energy-consuming countries: Fresh evidence from using the quantile-on-quantile approach," Energy Economics, Elsevier, vol. 71(C), pages 282-301.
    10. Hameed Olusegun Adebambo & Hasbullah Ashari & Norani Nordin, 2014. "Antecedents and Outcome of Sustainable Environmental Manufacturing Practices," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(3), pages 147-159.
    11. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    12. Farhani, Sahbi & Mrizak, Sana & Chaibi, Anissa & Rault, Christophe, 2014. "The environmental Kuznets curve and sustainability: A panel data analysis," Energy Policy, Elsevier, vol. 71(C), pages 189-198.
    13. Ufomba Henry, 2014. "Globalization and Environmental Issues: A New Framework for Security Analysis," Humanities and Social Sciences Letters, Conscientia Beam, vol. 2(4), pages 209-216.
    14. Mine Baran & Aysel Yılmaz, 2018. "A Study of Local Environment of Harran Historical Domed Houses in Terms of Environmental Sustainability," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 8(6), pages 211-220.
    15. T Kobayashi & H Kanematsu & R Hashimoto & K Morisato & N Ohashi & H Yamasaki & S Takamiya, 2013. "Study on Environment and Energy Using Belonging Materials," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 2(4), pages 50-58.
    16. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    17. Chavalit Kigpiboon, 2013. "The Development of Participated Environmental Education Model for Sustainable Mangrove Forest Management on Eastern Part of Thailand," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 2(3), pages 33-49.
    18. CM Van Der Bank & M Van Der Bank, 2014. "Learning Centred Environments Supporting the Environment of E-Learning in South Africa in Law Class," Humanities and Social Sciences Letters, Conscientia Beam, vol. 2(2), pages 93-107.
    19. CM van der Bank & M Van Der Bank, 2014. "Learning Centred Environments Supporting The Environment of E-Learning in South Africa in Law Class," Humanities and Social Sciences Letters, Conscientia Beam, vol. 2(2), pages 93-107.
    20. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
    21. Nguyen Duc Luong & Hoang Vinh Long & Ngo Kim Tuan & Nguyen Duy Thai, 2017. "Using Rubber Aggregate Derived from Discarded Tires for Producing Cement Concrete towards Resource Recovery and Environmental Protection in Vietnam," International Journal of Sustainable Energy and Environmental Research, Conscientia Beam, vol. 6(2), pages 36-49.
    22. Suhail Hussein AL-FATLAWI, 2018. "Nationalists and Environmentalists which are Anti-Globalization and the WTO," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 8(5), pages 256-264, May.
    23. Mine Baran & Aysel Yilmaz, 2018. "A Study of Local Environment of Harran Historical Domed Houses in Terms of Environmental Sustainability," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 8(6), pages 211-220, June.
    24. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    25. Nguyen Duc Luong & Hoang Vinh Long & Ngo Kim Tuan & Nguyen Duy Thai, 2017. "Properties of Concrete Containing Rubber Aggregate Derived From Discarded Tires," Asian Review of Environmental and Earth Sciences, Asian Online Journal Publishing Group, vol. 4(1), pages 12-19.
    26. Ahmad Zomorrodi & Xiaoyan Zhou, 2016. "Role of EKC and PHH in Determining Environment Quality and their Relation to Economic Growth of a Country," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(2), pages 139-144.
    27. Hameed Olusegun Adebambo & Hasbullah Ashari & Norani Nordin, 2014. "Antecedents and Outcome of Sustainable Environmental Manufacturing Practices," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(3), pages 147-159.
    28. Arshian Sharif & Sahar Afshan, 2018. "Does Military Spending Impede Income Inequality? A Comparative Study of Pakistan and India," Global Business Review, International Management Institute, vol. 19(2), pages 257-279, April.
    29. T. Kobayashi & H. Kanematsu & R. Hashimoto & K. Morisato & N. Ohashi & H. Yamasaki & S. Takamiya, 2013. "Study on Environment and Energy Using Belonging Materials," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 2(4), pages 50-58.
    30. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    31. Zhou Gideon, 2014. "Institutionalising and Mainstreaming Policy Analysis Culture in African Environments," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 1(1), pages 12-25.
    32. repec:pkp:ijseer:2017:p:36-49 is not listed on IDEAS
    33. Shahid ALI & Maryam BIBI & Fazli RABBI, 2014. "A New Economic Dimension to the Environmental Kuznets Curve: Estimation of Environmental Efficiency in Case of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 68-79, January.
    34. Sahbi Farhani & Sana Mrizak & Anissa Chaibi & Christophe Rault, 2014. "The Environmental Kuznets Curve and Sustainability: A Panel Data Analysis," CESifo Working Paper Series 4787, CESifo.
    35. Arshian Sharif & Sahar Afshan & Bushra Shahzad Khan, 2018. "Does democracy embolden economic growth in Pakistan? Evidence from ARDL bound testing and rolling window analysis," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 15(2), pages 180-203.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ashiq, Saima & Ali, Amjad & Siddique, Hafiz Muhammad Abubakar & Sumaira, Sumaira, 2023. "Impact of Innovation on CO2 Emissions in South Asian Countries," MPRA Paper 118760, University Library of Munich, Germany.
    2. Taimoor Arif Kiani & Samina Sabir & Unbreen Qayyum & Sohail Anjum, 2023. "Estimating the effect of technological innovations on environmental degradation: empirical evidence from selected ASEAN and SAARC countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6529-6550, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andhyka Tyaz Nugraha & Nor Hasni Osman, 2019. "CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 291-298.
    2. Azhar Susanto & Meiryani Meiryani, 2019. "The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 229-236.
    3. Ahmed Nahar Al-Hussaini, 2019. "The Role of Financial Management in Testing Environmental Kuznets Curve in Kuwait: Evidence from ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 353-359.
    4. Winwin Yadiati & Nissa Nissa & Sugiono Paulus & Harry Suharman & Meiryani Meiryani, 2019. "The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 261-268.
    5. Ratneswary Rasiah & Vinitha Guptan & Muzafar Shah Habibullah, 2018. "Evaluating the Impact of Financial and Economic Factors on Environmental Degradation: A Panel Estimation Study of Selected Asean Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 209-216.
    6. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
    7. Jeyhun I. Mikayilov & Marzio Galeotti & Fakhri J. Hasanov, 2018. "The Impact of Economic Growth on CO2 Emissions in Azerbaijan," IEFE Working Papers 102, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    8. Meiryani Meiryani & Azhar Susanto & Dezie Leonarda Warganegara, 2019. "The Issues Influencing of Environmental Accounting Information Systems: An Empirical Investigation of SMEs in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 282-290.
    9. Olimpia Neagu, 2019. "The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach," Sustainability, MDPI, vol. 11(17), pages 1-27, August.
    10. Azad Haider & Muhammad Iftikhar ul Husnain & Wimal Rankaduwa & Farzana Shaheen, 2021. "Nexus between Nitrous Oxide Emissions and Agricultural Land Use in Agrarian Economy: An ARDL Bounds Testing Approach," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    11. Oryani, Bahareh & Koo, Yoonmo & Rezania, Shahabaldin & Shafiee, Afsaneh, 2021. "Investigating the asymmetric impact of energy consumption on reshaping future energy policy and economic growth in Iran using extended Cobb-Douglas production function," Energy, Elsevier, vol. 216(C).
    12. Bibhuti Ranjan Mishra & Asit Mohanty, 2017. "An Empirical Analysis of Aggregate Import Demand Function for India," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(4), pages 1-12, December.
    13. Syed Ali Raza & Sahar Afshan, 2017. "Determinants of Exchange Rate in Pakistan: Revisited with Structural Break Testing," Global Business Review, International Management Institute, vol. 18(4), pages 825-848, August.
    14. Neofytidou, Aliona & Fountas, Stilianos, 2020. "The impact of health on GDP: A panel data investigation," The Journal of Economic Asymmetries, Elsevier, vol. 21(C).
    15. Yapatake Kossele Thales Pacific & Ngaba Mbai-Akem Gabriella Magalie, 2023. "One Bad Turn Deserves Another: How Energy Production, Financial Instability, and Political Governance Crisis Sustain the Decline of FDI Inflows in the Central African Republic," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 831-853, June.
    16. Arshian Sharif & Sahar Afshan, 2018. "Does Military Spending Impede Income Inequality? A Comparative Study of Pakistan and India," Global Business Review, International Management Institute, vol. 19(2), pages 257-279, April.
    17. Ahmed, Monir Uddin & Nurul Hossain, A.K.M. & Hasanuzzaman, Syed, 2015. "Exploring the depth of energy penetration in economic advancement: Perspective of Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1033-1047.
    18. Tang, Chor Foon & Tan, Bee Wah, 2014. "A revalidation of the savings–growth nexus in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 370-377.
    19. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    20. Bölük, Gülden & Mert, Mehmet, 2015. "The renewable energy, growth and environmental Kuznets curve in Turkey: An ARDL approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 587-595.

    More about this item

    Keywords

    Environmental Kuznets Curve; Technology Innovation; Innovation; Indonesia.;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-01-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.