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Determinants of Biofuels Production and Consumption, Green Economic Growth and Environmental Degradation in 6 Asia Pacific Countries: A Simultaneous Panel Model Approach

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  • Anggi Putri Kurniadi

    (Faculty of Economics, Universitas Negeri Padang, Indonesia)

  • Hasdi Aimon

    (Faculty of Economics, Universitas Negeri Padang, Indonesia)

  • Syamsul Amar

    (Faculty of Economics, Universitas Negeri Padang, Indonesia)

Abstract

This study aims to fill the gaps in previous research in the form of development studies between production and consumption biofuels, green economic growth and environmental degradation in 6 selected Asia Pacific countries (Australia, China, India, Indonesia, South Korea and Thailand) by considering the determinants during the period 2007-2020. This study used a simultaneous panel model approach. The important findings of this study are grouped into 4 analysis models. First, biofuels consumption, capital formation, labor and foreign direct investment have a positive effect on biofuels production. Second, biofuels production, foreign direct investment, GDP per capita and trade openness have a positive effect on biofuels consumption. Third, biofuels production, biofuels consumption and technological innovation have a positive effect on green economic growth, while militarization has a negative effect. Fourth, biofuels production, biofuels consumption, green economic growth and cleaner energy have a negative effect on environmental degradation, while population and poverty have a positive effect. The development of biofuels oil is aimed at realizing the transition from fossil-based energy to biomass-based energy which is expected to be environmentally friendly and sustainable. Biofuels oil has great potential in supporting renewable energy development to increase green economic growth and reduce environmental degradation.

Suggested Citation

  • Anggi Putri Kurniadi & Hasdi Aimon & Syamsul Amar, 2021. "Determinants of Biofuels Production and Consumption, Green Economic Growth and Environmental Degradation in 6 Asia Pacific Countries: A Simultaneous Panel Model Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 460-471.
    • Handle: RePEc:eco:journ2:2021-05-52
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    Cited by:

    1. Hasdi Aimon & Anggi Putri Kurniadi & Sri Ulfa Sentosa & Nurhayati Abd Rahman, 2023. "Production, Consumption, Export and Carbon Emission for Coal Commodities: Cases of Indonesia and Australia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 484-492, September.
    2. Hasdi Aimon & Anggi Putri Kurniadi & Mike Triani, 2022. "Determination of Natural Gas Consumption and Carbon Emission in Natural Gas Supplying Countries in Asia Pacific," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 96-101, November.

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    More about this item

    Keywords

    Biofuels Production; Biofuels Consumption; Green Economic Growth; Environmental Degradation; Simultaneous Panel Model; Asia Pacific;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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