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Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy

Author

Listed:
  • Muhammad Yusuf

    (Universitas Islam Negeri, Alauddin Makassar Indonesia, Indonesia)

  • Zakir Sabara

    (Universitas Muslim Indonesia, Indonesia,)

  • Ismail Suardi Wekke

    (Sekolah Tinggi Agama Islam Negeri, Sorong, Indonesia.)

Abstract

This present study examines the role of technology innovation in testing the environmental Kuznets Curve in Indonesia by taking the annual time series data over the time period of 1980 to 2017. The study used high technology exports as a proxy of technology innovation to examine the long run relationship between economic development, technology innovation and carbon dioxide emission in Indonesia. The author applied the advance econometrics to serve the purpose of investigation and therefore used the FMOLS and DOLS for assessing the presence of long-run relationship between the variables. Utilizing the framework of Kuznets Curve, the results of FMOLS and DOLS approaches confirm the valid long run relationship between technology innovation and environmental degradation in Indonesia. The empirical results indicate that technology innovation has negative and significant impact on carbon dioxide emission long run. Therefore, the findings of the study recommended that technology innovation does not only benefit for the economic development but also helps to reduce the environmental degradation in Indonesia.

Suggested Citation

  • Muhammad Yusuf & Zakir Sabara & Ismail Suardi Wekke, 2019. "Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 276-281.
    • Handle: RePEc:eco:journ2:2019-01-35
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    Cited by:

    1. Taimoor Arif Kiani & Samina Sabir & Unbreen Qayyum & Sohail Anjum, 2023. "Estimating the effect of technological innovations on environmental degradation: empirical evidence from selected ASEAN and SAARC countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6529-6550, July.
    2. Saima Ashiq & Amjad Ali & Hafiz Muhammad Abubakar Siddique & Sumaira, 2023. "Impact Of Innovation On Co2 Emissions In South Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 201-211.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Technology Innovation; Innovation; Indonesia.;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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