IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-05-37.html
   My bibliography  Save this article

The Damaging Growth: An Empiric Evidence of Environmental Kuznets Curve in Indonesia

Author

Listed:
  • Darwanto Darwanto

    (Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia)

  • Nenik Woyanti

    (Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia)

  • Purbayu Budi Santosa

    (Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia)

  • Hadi Sasana

    (Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia)

  • Imam Ghozali

    (Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia)

Abstract

This study examines the short-run and long-run relationships between economic growth, carbon dioxide (CO2) emissions and energy consumption within a sample period of 1990-2016. The study used autoregressive distributed lag approach to test the cointegration relationship and Granger vector error correction model causality test to investigate the direction of causality. This study does not support the hypothetical relationship (environmental Kuznets curve) for a significance level of 5%. The long-run test of Granger causality shows that there is a two-way causal relationship of economic growth, CO2 emissions, and energy consumption. This result indicates that a reduction in energy consumption is an effective way to control CO2 emissions but will simultaneously impede economic growth. Therefore, setting suitable policy related to efficient consumptions of energy resources and renewable energy resources is necessary.

Suggested Citation

  • Darwanto Darwanto & Nenik Woyanti & Purbayu Budi Santosa & Hadi Sasana & Imam Ghozali, 2019. "The Damaging Growth: An Empiric Evidence of Environmental Kuznets Curve in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 339-345.
    • Handle: RePEc:eco:journ2:2019-05-37
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/7816/4567
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/7816/4567
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Antonio Couto & Daniel Graham, 2008. "The contributions of technical and allocative efficiency to the economic performance of European railways," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 7(2), pages 125-153, August.
    2. Yi-Ming Wei & Hua Liao (ed.), 2016. "Energy Economics: Energy Efficiency in China," CEEP-BIT Books, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology, number b5.
    3. Virda Hersy Lutviana Saputri & Muhammad Hisjam, 2018. "Techno-Economic Analysis of Fuel Vehicles as Logistic Distribution Facilities in Indonesia by Considering the Carbon Emission Cost," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 35-38.
    4. repec:eco:journ2:2017-04-36 is not listed on IDEAS
    5. Ali Baniyounes & Yazeed Ghadi & Ayman Abu Baker, 2019. "Energy Performance of Fuzzy Logic Controllers in Smart Buildings," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 41-47.
    6. Piotr Olszewski, 2007. "Singapore motorisation restraint and its implications on travel behaviour and urban sustainability," Transportation, Springer, vol. 34(3), pages 319-335, May.
    7. Yousaf Ali & Claudio Socci & Rosita Pretaroli & Francesca Severini, 2018. "Economic and environmental impact of transport sector on Europe economy," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 361-397, August.
    8. Andrea Gallo & Riccardo Accorsi & Giulia Baruffaldi & Riccardo Manzini, 2017. "Designing Sustainable Cold Chains for Long-Range Food Distribution: Energy-Effective Corridors on the Silk Road Belt," Sustainability, MDPI, vol. 9(11), pages 1-20, November.
    9. Letnik, Tomislav & Marksel, Maršenka & Luppino, Giuseppe & Bardi, Andrea & Božičnik, Stane, 2018. "Review of policies and measures for sustainable and energy efficient urban transport," Energy, Elsevier, vol. 163(C), pages 245-257.
    10. Rainer Walz & Wolfgang Eichhammer, 2012. "Benchmarking green innovation," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 79-101, June.
    11. Deniz Erdem, 2012. "Foreign direct investments, energy efficiency, and innovation dynamics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 119-133, June.
    12. Akihiro Otsuka & Mika Goto, 2018. "Regional determinants of energy intensity in Japan: the impact of population density," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 257-278, August.
    13. Mohan L. Lakhera, 2016. "Economic Growth in Developing Countries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-53807-9.
    14. Rao Qasim Idrees & Rohimi Shapiee & Haniff Ahamat, 2019. "The Role of Logistics Infrastructure in China Pakistan Economic Corridor Energy Generation Development," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 262-268.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tomislav Letnik & Katja Hanžič & Giuseppe Luppino & Matej Mencinger, 2022. "Impact of Logistics Trends on Freight Transport Development in Urban Areas," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    2. Garfield Wayne Hunter & Gideon Sagoe & Daniele Vettorato & Ding Jiayu, 2019. "Sustainability of Low Carbon City Initiatives in China: A Comprehensive Literature Review," Sustainability, MDPI, vol. 11(16), pages 1-37, August.
    3. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    4. Rafael Tordecilla-Madera & Andrés Polo & Adrián Cañón, 2018. "Vehicles Allocation for Fruit Distribution Considering CO 2 Emissions and Decisions on Subcontracting," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    5. Muhammad Shahbaz & Amatul Razzaq Chaudhary & Syed Jawad Hussain Shahzad, 2020. "Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?," Applied Economics, Taylor & Francis Journals, vol. 50(52), pages 5641-5658, June.
    6. Yongjun Shen & Qiong Bao & Elke Hermans, 2020. "Applying an Alternative Approach for Assessing Sustainable Road Transport: A Benchmarking Analysis on EU Countries," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    7. Song Xu & Yiu Hin Martin Lu & Meiheriayi Mutailipu & Kanti Yan & Yaoli Zhang & Staffan Qvist, 2022. "Repowering Coal Power in China by Nuclear Energy—Implementation Strategy and Potential," Energies, MDPI, vol. 15(3), pages 1-27, January.
    8. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    9. Jan, Muhammad Zain & Ullah, Kafait & Abbas, Faisal & Khalid, Hassan Abdullah & Bajwa, Tariq M., 2023. "Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan," Energy Policy, Elsevier, vol. 179(C).
    10. Xiaojian Hu & Nuo Chen & Nan Wu & Bicheng Yin, 2021. "The Potential Impacts of Electric Vehicles on Urban Air Quality in Shanghai City," Sustainability, MDPI, vol. 13(2), pages 1-12, January.
    11. Kazak Jan K. & Simeunović Nataša & Hendricks Andreas, 2019. "Hidden Public Value Identification of Real Estate Management Decisions," Real Estate Management and Valuation, Sciendo, vol. 27(4), pages 96-104, December.
    12. Xu, Dandan & Guo, Dongli & Yue, Pengpeng & Li, Mengshi, 2024. "Household green consumption: Does digital inclusion matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    13. Magdalena Kowalska, 2022. "Conceptualization of Sustainable Marketing Tools among SME Managers in Selected Countries in Poland and Sri Lanka," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    14. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    15. Ludmiła Filina-Dawidowicz & Anna Wiktorowska-Jasik, 2022. "Contemporary problems and challenges of sustainable distribution of perishable cargoes: Case study of Polish cold port stores," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4434-4450, March.
    16. Ofori, Isaac K. & Gbolonyo, Emmanuel & Ojong, Nathanael, 2022. "Towards Inclusive Green Growth in Africa: Critical energy efficiency synergies and governance thresholds," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 365, pages 1-48.
    17. Junseung Kim & Kyungku Kim & Kum Fai Yuen & Keun-Sik Park, 2020. "Cost and Scenario Analysis of Intermodal Transportation Routes from Korea to the USA: After the Panama Canal Expansion," Sustainability, MDPI, vol. 12(16), pages 1-20, August.
    18. Zhi Li & Ruyi Yan & Zuo Zhang & Yue Sun & Xiaogang Zhang, 2021. "The Effects of City-County Mergers on Urban Energy Intensity: Empirical Evidence from Chinese Cities," IJERPH, MDPI, vol. 18(16), pages 1-24, August.
    19. Balli, Ozgur & Caliskan, Hakan, 2021. "Turbofan engine performances from aviation, thermodynamic and environmental perspectives," Energy, Elsevier, vol. 232(C).
    20. Cipek, Mihael & Pavković, Danijel & Krznar, Matija & Kljaić, Zdenko & Mlinarić, Tomislav Josip, 2021. "Comparative analysis of conventional diesel-electric and hypothetical battery-electric heavy haul locomotive operation in terms of fuel savings and emissions reduction potentials," Energy, Elsevier, vol. 232(C).

    More about this item

    Keywords

    Environmental Kuznets Curve; CO2 Emissions; Energy Consumption.;
    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
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-05-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.