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Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission: Indonesian Case Studies

Author

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  • Hadi Sasana

    (Faculty of Business and Economics, University of Diponegoro, Indonesia)

  • Jaka Aminata

    (Faculty of Business and Economics, University of Diponegoro, Indonesia)

Abstract

In the globalization era, the process of economic growth must be supported by energy; although, it might be leave harmfully residual accumulation such carbon dioxide (CO2) emissions to environment. The aim of this study was to analyze the effect of energy-based economic growth on CO2 emissions. Estimation using multiple linear regression (multiple regression model) with ordinary least square method to analyze collected data. The results showed that economic growth, primary energy consumption, and population growth positively affected CO2 emissions, while renewable energy consumption negatively affected CO2 emissions. The environmental Kuznets curve hypothesis was not confirmed in Indonesian case, and economic globalization had no effect on CO2 emissions.

Suggested Citation

  • Hadi Sasana & Jaka Aminata, 2019. "Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission: Indonesian Case Studies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 117-122.
    • Handle: RePEc:eco:journ2:2019-02-14
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    References listed on IDEAS

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    4. Fitrah Sari Islami & Panji Kusuma Prasetyanto & Fitri Kurniasari, 2022. "The Effect of Population, GDP, Non-Renewable Energy Consumption and Renewable Energy Consumption on Carbon Dioxide Emissions in G-20 Member Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 103-110, March.
    5. Nasreen, Samia & Mbarek, Mounir Ben & Atiq-ur-Rehman, Muhammad, 2020. "Long-run causal relationship between economic growth, transport energy consumption and environmental quality in Asian countries: Evidence from heterogeneous panel methods," Energy, Elsevier, vol. 192(C).
    6. Panji Kusuma Prasetyanto & Farmila Sari, 2021. "Environmental Kuznets Curve: Economic Growth with Environmental Degradation In Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 622-628.
    7. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
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    More about this item

    Keywords

    Environmental Kuznets Curve; economic growth; CO 2 emissions; renewable energy; globalization;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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