Detection of Pseudo Economic Growth Towards Environmental Damage in Indonesia Using Error Correction Model
Year: 2019
Type: conference-paper
Abstract: Economic growth is one of the indicators of economic development. The effort to increase economic growth doesn’t pay attention to the environment be said the pseudo-economic growth. Using GDP per capita and CO2 emissions as indicators of economic growth and environmental damage, this study aims to examine the relationship between them using the Environmental Kuznets Curve (EKC) framework. The EKC hypothesis proposes a turning point at a certain level of economic growth so that sustainable development can be achieved. This study attempts to estimate EKC in the case of Indonesia for the period 1965-2014 by considering the role of fossil energy consumption. The method of analysis used the Error Correction Mechanism (ECM). The result showed that Indonesia is at the early stage of EKC. It indicates that an increase in economic growth leads to an increase of CO2 emissions and has not to reach a turning point. The type of fossil energy that has a positive and significant influence on CO2 emissions is oil.
Authors: Bagus Sumargo, Ema Fadlilah
Institutions: State University of Jakarta, Politeknik Statistika STIS
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Climate action
Open Access status: diamond
OpenAlex ID: W2955720896