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Industrialization and Consumption of Fossil Energy are the Main Determinants of Environmental Degradation in Water Catchment Areas in Indonesia

Author

Listed:
  • Hadi Sasana

    (Faculty of Economics, Tidar University, Magelang, Indonesia.)

  • Panji Kusuma Prasetyanto

    (Faculty of Economics, Tidar University, Magelang, Indonesia.)

  • Nuwun Priyono

    (Faculty of Economics, Tidar University, Magelang, Indonesia.)

Abstract

Economic growth is the main goal of the global economy. However, increasing economic growth often results in increased CO2 emissions and encourages environmental degradation. This study analyzes the impact of industrialization, consumption of fossil energy, economic growth, and population activities on CO2 emissions in upland water catchment areas. Data analysis using panel data regression, in a span of 20 years. The results of the study show that economic factors, namely industrialization and consumption of fossil energy, are the main determinants of increasing CO2 emissions. Meanwhile, social aspects such as education, waste generation, and population have no effect on CO2 emissions.

Suggested Citation

  • Hadi Sasana & Panji Kusuma Prasetyanto & Nuwun Priyono, 2022. "Industrialization and Consumption of Fossil Energy are the Main Determinants of Environmental Degradation in Water Catchment Areas in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 168-174, November.
    • Handle: RePEc:eco:journ2:2022-06-22
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    References listed on IDEAS

    as
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    2. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    CO2 emissions; economic growth; fossil energy; industrialization;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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

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