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The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia

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  • Raihan, Asif
  • Pavel, Monirul Islam
  • Muhtasim, Dewan Ahmed
  • Farhana, Sadia
  • Faruk, Omar
  • Paul, Arindrajit

Abstract

Emissions of greenhouse gases (GHG), and carbon dioxide (CO2) represent a significant threat to environment, economy, and human health. This article summarises the results of an empirical investigation on the potential for economic growth, renewable energy use, technical advancement, and forest cover in Indonesia to reduce CO2 emissions. This study utilized the Dynamic Ordinary Least Squares (DOLS) approach to analyze the time series data covering 1990–2020. The empirical statistics suggest that Indonesia's CO2 emissions would increase by 1.17% for every 1% increase in economic development. Furthermore, a 1% increase in the use of renewable energy may be connected with a 1.40% decrease in CO2 emissions, technical innovation with a 0.17% decrease, and an increase in forest cover with a 3.94% decrease in CO2 emissions. The estimated outcomes are insensitive to alternative estimators such as fully modified ordinary least squares (FMOLS) and canonical cointegrating regression (CCR). Furthermore, the pairwise Granger causality test was employed to capture the causal relationship between the variables. This article presents policy suggestions for achieving environmental sustainability in Indonesia through the reduction of carbon emissions. These policies emphasize a low-carbon economy, promoting renewable energy use, financing technical advancement, and the ecological viability of Indonesia's forests.

Suggested Citation

  • Raihan, Asif & Pavel, Monirul Islam & Muhtasim, Dewan Ahmed & Farhana, Sadia & Faruk, Omar & Paul, Arindrajit, 2023. "The role of renewable energy use, technological innovation, and forest cover toward green development: Evidence from Indonesia," Innovation and Green Development, Elsevier, vol. 2(1).
    • Handle: RePEc:eee:ingrde:v:2:y:2023:i:1:s2949753123000036
    DOI: 10.1016/j.igd.2023.100035
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    3. Asif Raihan, 2023. "Energy, Economy, and Environment Nexus: New Evidence from China," Energy Technologies and Environment, Anser Press, vol. 1(1), pages 68-80, July.
    4. Raihan, Asif, 2023. "The influences of renewable energy, globalization, technological innovations, and forests on emission reduction in Colombia," Innovation and Green Development, Elsevier, vol. 2(4).
    5. Han, Jixuan & Li, Tianshu & Philbin, Simon P., 2023. "Does low-carbon pilot policy in China improve corporate profitability? The role of innovation and subsidy," Innovation and Green Development, Elsevier, vol. 2(2).
    6. Raihan, Asif, 2023. "Nexus between greenhouse gas emissions and its determinants: The role of renewable energy and technological innovations towards green development in South Korea," Innovation and Green Development, Elsevier, vol. 2(3).
    7. Fei Peng & Shibiao Zhou & Tao Ding & Huaqing Wu, 2023. "Impact of fiscal expenditure stress on green transformation risk: evidence from China education authority reform," Economic Change and Restructuring, Springer, vol. 56(6), pages 4565-4601, December.
    8. Raihan, Asif, 2023. "Economy-energy-environment nexus: The role of information and communication technology towards green development in Malaysia," Innovation and Green Development, Elsevier, vol. 2(4).
    9. Li, Shuangyan & Chang, Ge & Zunong, Reyihanguli, 2023. "Does regional digital economy development influence green investment?," Innovation and Green Development, Elsevier, vol. 2(3).
    10. Yolcan, Oguz Ozan, 2023. "World energy outlook and state of renewable energy: 10-Year evaluation," Innovation and Green Development, Elsevier, vol. 2(4).

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