Work

Towards Low-Carbon Economy: How Does Indonesia’s Industry Decarbonize its Assets

Year: 2024

Type: article

Abstract: Fixed assets are signs of a significant source of carbon emissions in intensive carbon sectors.This study aims to investigate the impact of asset structure and asset utilization efficiency on the carbon emissions reduction in high polluting industry in Indonesia.The study uses the high-polluting industries in Indonesia in the period 2018-2022, as the sample.Secondary data were collected from the company's annual and sustainability report from the company's website.To test the hypotheses, the study used logistic regression.The results show asset structure does not have a significant effect on carbon emissions reduction, however, asset utilization efficiency has a negative effect on carbon emissions reduction.This study's results highlight the critical need for the government and research organizations to define the carbon emissions capacity of various fixed assets.As a result, it is easier for high-carbon industries to implement more detailed carbon management strategies and maximize their carbon advantages.

Source: International Journal of Environmental Impacts

DOI: 10.18280/ijei.070406

Authors: Shalmma Aulia Putri, Linda Kusumaning Wedari

Institution: Binus University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Responsible consumption and production, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $950