ANALISIS HUBUNGAN KAUSALITAS PERTUMBUHAN EKONOMI, KONSUMSI ENERGI, DAN EMISI CO2 DI INDONESIA PADA PERIODE 1980-2019

Abstract

Energy plays an important role in the growth of economic. On the other hand, theincrease of economic growth will also trigger the occurrence of degradation ofenvironmental quality derived from CO2 emissions. CO2 emissions are caused byoxidation process of fossil fuel energy. Many studies have attempted to look forcausality between energy consumption, economic growth and CO2 emissionsmainly on developing countries. This study therefore analyze the relationshipbetween energy use, economic growth, and CO2 emissions in Indonesia during1980-2019. It applies granger causality methods to examine the relationshipbetween energy consumption, economic growth, and CO2 emission. The findingsof this study indicate that there is no causality or unidirectional relationship betweenenergy consumption and economic growth. There is no causal relationshipbetween economic growth and CO2 emission and there is a unidirectionalrelationship from energy consumption to CO2 emission. Based on the result ofanalysis, it recommends that the government need to develop energy-efficientinfrastructure, transform low carbon technologies aimed to reduce emissions andimprove the use of renewable energy in all sectors.