Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia

Research Article

The Nexus Between Energy Consumption, Growth and Emission in Indonesia: An ARDL Approach

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  • @INPROCEEDINGS{10.4108/eai.2-8-2023.2341476,
        author={Anisa Nurul Alifah and Mahrus Lutfi Adi Kurniawan},
        title={The Nexus Between Energy Consumption, Growth and Emission in Indonesia: An ARDL Approach},
        proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia},
        publisher={EAI},
        proceedings_a={ICEB},
        year={2024},
        month={6},
        keywords={co2 emissions; ardl; foreign direct investment growth},
        doi={10.4108/eai.2-8-2023.2341476}
    }
    
  • Anisa Nurul Alifah
    Mahrus Lutfi Adi Kurniawan
    Year: 2024
    The Nexus Between Energy Consumption, Growth and Emission in Indonesia: An ARDL Approach
    ICEB
    EAI
    DOI: 10.4108/eai.2-8-2023.2341476
Anisa Nurul Alifah1,*, Mahrus Lutfi Adi Kurniawan1
  • 1: Faculty of Economic and Business, Universitas Ahmad Dahlan
*Contact email: anisanurulalifa@uad.ac.id

Abstract

This study aims to determine the causal relationship between economic growth, primary energy consumption, trade openness, foreign investment, CO2 emissions in Indonesia from 1990 to 2020. The data used are secondary data in the form of time series data. This study uses ARDL (Autoregressive Distributed Lag) approach which is used to determine the existence of cointegration and short-term and long-term causality of each variable. The results showed that the overall long-run coefficient of the variables had no effect on CO2 emissions. In the short run, economic growth, primary energy consumption, foreign direct investment have a positive and significant impact on CO2 emissions. However, the trade openness in the short run has a negative relationship and significant impact on CO2 emissions.