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Energy consumption, economic growth and environmental pollutants in Indonesia

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  • Jafari, Yaghoob
  • Othman, Jamal
  • Nor, Abu Hassan Shaari Mohd

Abstract

This paper examines the long run Granger causality relationship between economic growth, carbon dioxide emissions and energy consumption from 1971 to 2007 in Indonesia, controlling for capital stock and urban population. Using Toda–Yamamoto (TY) procedure, it has been found that there was no relationship between these variables except the causality effect that runs from urban population to energy consumption. The absence of these linkages suggests that energy conservation strategies in Indonesia may not produce desirable effect on emission reductions, and Indonesia does not have to relinquish economic growth. However, the results may not be sufficient to warrant Indonesia's choice of specific policies and strategies to limit carbon emissions in the context of combating global climate change. This is because the study does not take into account net carbon release from deforestation and forest degradation. There seems to be substantial scope for Indonesia to limit her CO2 emission via reducing deforestation and improved forest management through the REDD Plus framework.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 34 (2012)
Issue (Month): 6 ()
Pages: 879-889

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Handle: RePEc:eee:jpolmo:v:34:y:2012:i:6:p:879-889

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: Carbon dioxide emissions; Energy consumption; Economic growth in Indonesia;

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References

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Cited by:
  1. Muhammad, Shahbaz & Qazi Muhammad Adnan, Hye & Aviral Kumar, Tiwari, 2013. "Economic Growth, Energy Consumption, Financial Development, International Trade and CO2 Emissions, in Indonesia," MPRA Paper 43272, University Library of Munich, Germany, revised 10 Dec 2012.
  2. Ibrahim, Mansor H. & Law, Siong Hook, 2014. "Social capital and CO2 emission—output relations: A panel analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 528-534.

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