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The role of renewable, non-renewable electricity consumption and carbon emission in development in Indonesia: Evidence from Distributed Lag Tests

Author

Listed:
  • Mohd Haizam Mohd Saudi

    (Widyatama University, Indonesia,)

  • Obsatar Sinaga

    (Padjadjaran University, Indonesia,)

  • Djoko Roespinoedji

    (Widyatama University, Indonesia,)

  • Mohd Shahril Ahmad Razimi

    (Islamic Business School, Universiti Utara Malaysia.)

Abstract

The current examination aims to explore the critical relationship of energy, in the form of electricity with economic growth of Indonesia. Contrary to traditional approach of assessing the impact of energy consumption, the present study analyzes the association from production point of view by assessing the impact of electricity production on economic development. In doing so, the current study has adopted the refined methodology of Auto-Regressive Distributed Lags (ARDL) bound testing approach to examine the dynamic relationship among renewable electricity generation, non-renewable electricity generation and economic growth with amplified understanding of the critical association to support the course of economic planning and policy making. The results of ARDL bound testing approach confirm that renewable electricity generation, non-renewable electricity generation and carbon dioxide emission are solid determinants of economic development in Indonesia. Moreover, the results avow that renewable electricity and non-renewable electricity generation have a useful and beneficial outcome on economic development in Indonesia

Suggested Citation

  • Mohd Haizam Mohd Saudi & Obsatar Sinaga & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The role of renewable, non-renewable electricity consumption and carbon emission in development in Indonesia: Evidence from Distributed Lag Tests," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 46-52.
    • Handle: RePEc:eco:journ2:2019-03-5
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    Cited by:

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    2. Ghazouani, Tarek & Boukhatem, Jamel & Yan Sam, Chung, 2020. "Causal interactions between trade openness, renewable electricity consumption, and economic growth in Asia-Pacific countries: Fresh evidence from a bootstrap ARDL approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
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    5. Wang, Lu & Luo, Gong-li & Sharif, Arshian & Dinca, Gheorghita, 2021. "Asymmetric dynamics and quantile dependency of the resource curse in the USA," Resources Policy, Elsevier, vol. 72(C).
    6. Kudabayeva Lyazzat & Aktolkin Abubakirova & Omarova Aizhan Igilikovna & Taskinbaikyzy Zhanargul & Saubetova Bibigul Suleimenovna, 2023. "The Relationship between Energy Consumption, Carbon Emissions and Economic Growth in ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 265-271, March.
    7. Harin Tiawon & Miar Miar, 2023. "The Role of Renewable Energy Production, Energy Efficiency and Green Finance in Achieving Sustainable Economic Development: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 250-260, January.

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    More about this item

    Keywords

    Renewable electricity generation; nonrenewable electricity generation; carbon dioxide emission; Indonesia.;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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