The Effect of Energy Sources and CO2 Emission on Indonesia’s Economic Growth in Different Regime

Abstract

One of the country's economic development indicators is reflected in the country's economic growth. Objective: This study was conducted to examine the effect of the use of energy sources and CO2 emissions on economic growth in different regime in Indonesia. Data and Method: The data used are annual time series data published by World Development Indicators (WDI) database during the year 2004-2019.The data analysis method used is the ARDL regression approach model. Result: The results of the study found that CO2 gas emissions in the short and long term do not affect economic growth. The use of imported energy and energy use has a negative effect on economic growth in the short term. Meanwhile, in the long term, it has a positive effect on economic growth. Furthermore, this study found that renewable electricity output has a positive effect on economic growth in both the short and long term and renewable energy cons has no effect on economic growth in the short and long term. Finally, this study found that the difference between the regime of the SBY and JKW periods influenced economic growth.