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Interconnected Forces: Analyzing Urbanization, Economic Growth, Energy Consumption, and Forest Area in the Top 10 Populous Nations’ CO2 Emissions

Author

Listed:
  • Amin Pujiati

    (Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

  • Yozi Aulia Rahman

    (Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

  • Nurjannah Rahayu Kistanti

    (Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

  • Annis Nurfitriana Nihayah

    (Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

  • Nur Amalia Nabila

    (Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

Abstract

Economic progress is often seen as a means to enhance living standards, yet it often comes with an unintended consequence: a decline in environmental well-being. This research seeks to validate the Environmental Kuznets Curve (EKC) theory within the top 10 most populous nations and scrutinize the impact of urbanization, economic advancement, energy usage, and forest coverage on CO2 emissions. Utilizing data sourced from the World Development Indicator spanning from 2000 to 2019, this study employed a robust analytical approach known as the generalized method of moments (GMM) dynamic panel data, validated through Sargan and Arellano-Bond tests. The findings affirmed that economic growth, energy consumption, and forest area exerted significant influence on carbon dioxide emissions, aligning with the EKC hypothesis. However, contrary to expectation, urbanization didn't display a discernible impact on emissions, likely due to well-integrated transportation systems and higher educational standards prevalent in urban settings. This underscores the necessity for a sustainable economic growth strategy, advocating for industries with minimal pollution and eco-friendly products conducive to easy recycling. Furthermore, initiatives aimed at expanding forested areas should consider innovative techniques like vertical garden-based reforestation.

Suggested Citation

  • Amin Pujiati & Yozi Aulia Rahman & Nurjannah Rahayu Kistanti & Annis Nurfitriana Nihayah & Nur Amalia Nabila, 2024. "Interconnected Forces: Analyzing Urbanization, Economic Growth, Energy Consumption, and Forest Area in the Top 10 Populous Nations’ CO2 Emissions," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 669-675, March.
    • Handle: RePEc:eco:journ2:2024-02-66
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    References listed on IDEAS

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    More about this item

    Keywords

    CO2 Emissions; Urbanization; Environmental Kuznets Curve; Energy Consumption; Generalized Method of Moments;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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