Analysis of Green Economic Growth, Biofuel Oil Consumption, Fuel Oil Consumption and Carbon Emission in Asia Pacific

Abstract

This study expands research to analyze green economy, separated energy consumption and environment to achieve sustainable development in selected countries in Asia Pacific during the period 2006-2020 by using two-stage least square. The contribution of this study is to consider the use of green economic growth, which studies are still limited in terms of energy consumption indicators that have a substitution effect. This study found that green economic growth increased due to an increase in fuel oil consumption and technological innovation, as well as decreased fuel oil consumption, carbon emission and militarization. Furthermore, biofuel oil consumption increased due to an increased in green economic growth, fuel oil consumption, carbon emission, real oil prices, foreign direct investment and trade openness. In addition, fuel oil consumption increased due to an increase in biofuel oil consumption and population, as well as a decrease in green economic growth, carbon emission and trade openness. Finally, carbon emission increases due to an increase in fuel oil consumption and poverty. The government should implement a green economy program policy to reduce fuel oil consumption and carbon emissions, as well as increase biofuel oil consumption in Asia Pacific.