IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-04-44.html
   My bibliography  Save this article

Modeling the Relationship between Life Expectancy, Population Growth, Carbon Dioxide Emission, and GDP Growth in Indonesia

Author

Listed:
  • Sri Hasnawati

    (Department of Management, Faculty of Economic and Business, University of Lampung, Indonesia)

  • Mustofa Usman

    (Department of Mathematics, Faculty of Mathematics and Natural Sciences, Unviersity Lampung, Indonesia)

  • Faiz AM Elfaki

    (Department of Mathematics, Statistics and Physics, College of Arts and Sciences, Qatar University, Qatar)

  • Ahmad Faisol

    (Department of Management, Faculty of Economic and Business, University of Lampung, Indonesia)

  • Edwin Russel

    (Department of Management, Faculty of Economic and Business, University of Lampung, Indonesia)

Abstract

Research on Life Expectancy at Birth (LEB) and its relationship with several economic variables is interesting to be studied. LEB also describes the welfare condition of a country, where generally developed countries have a high level of LEB. This research will discuss the relationship between the variables of Life Expectancy at Birth (LEB), Corbon Dioxide (CO2) Emissions, Population Growth (PG), and Growth Gross Domestic Product (GDPG) in the case of Indonesia from 1950 to 2020. The aims of this study is to build a model of the relationship between variables LEB, CO2, PG and GDPG, and based on the best model obtained then will discuss the causal relationship between variables using Granger-Causality, Impulse Response Function (IRF), and forecasting and the proportion of error covariance decompositions. From the analysis results, the best model that describes the relationship between variables: LEB, CO2, PG, and GDPG is the Vector Error Correction Model (VECM). The results showed that there is a bidirectional relationship between the LEB variable and population growth. Partially, economic growth is proxied by GDPG affecting LEB and CO2 affecting PG. However, there was no effect of CO2 on LEB and GDPG in Indonesia. Based on the analysis results obtained, the chosen country is encouraged to consider the variables PG and GDPG in an effort to increase LEB in the future.

Suggested Citation

  • Sri Hasnawati & Mustofa Usman & Faiz AM Elfaki & Ahmad Faisol & Edwin Russel, 2024. "Modeling the Relationship between Life Expectancy, Population Growth, Carbon Dioxide Emission, and GDP Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 484-500, July.
    • Handle: RePEc:eco:journ2:2024-04-44
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/16303/8006
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/16303
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Helmut Lütkepohl, 2005. "New Introduction to Multiple Time Series Analysis," Springer Books, Springer, number 978-3-540-27752-1, March.
    2. Esso, Loesse Jacques & Keho, Yaya, 2016. "Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries," Energy, Elsevier, vol. 114(C), pages 492-497.
    3. Ali, Amjad & Ahmad, Khalil, 2014. "The Impact of Socio-Economic Factors on Life Expectancy for Sultanate of Oman: An Empirical Analysis," MPRA Paper 82500, University Library of Munich, Germany, revised 2014.
    4. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
    5. repec:onl:scimod:2017:p:19-36 is not listed on IDEAS
    6. Wang, Zhaohua & Yin, Fangchao & Zhang, Yixiang & Zhang, Xian, 2012. "An empirical research on the influencing factors of regional CO2 emissions: Evidence from Beijing city, China," Applied Energy, Elsevier, vol. 100(C), pages 277-284.
    7. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    8. Warsono Warsono & Edwin Russel & Wamiliana Wamiliana & Widiarti Widiarti & Mustofa Usman, 2019. "Modeling and Forecasting by the Vector Autoregressive Moving Average Model for Export of Coal and Oil Data (Case Study from Indonesia over the Years 2002-2017)," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 240-247.
    9. Wang, Zhaohua & Asghar, Muhammad Mansoor & Zaidi, Syed Anees Haider & Nawaz, Kishwar & Wang, Bo & Zhao, Wehui & Xu, Fengxing, 2020. "The dynamic relationship between economic growth and life expectancy: Contradictory role of energy consumption and financial development in Pakistan," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 257-266.
    10. Dong, Kangyin & Hochman, Gal & Zhang, Yaqing & Sun, Renjin & Li, Hui & Liao, Hua, 2018. "CO2 emissions, economic and population growth, and renewable energy: Empirical evidence across regions," Energy Economics, Elsevier, vol. 75(C), pages 180-192.
    11. Peter Lorentzen & John McMillan & Romain Wacziarg, 2008. "Death and development," Journal of Economic Growth, Springer, vol. 13(2), pages 81-124, June.
    12. Ewing, Bradley T. & Payne, James E. & Caporin, Massimilano, 2022. "The Asymmetric Impact of Oil Prices and Production on Drilling Rig Trajectory: A correction," Resources Policy, Elsevier, vol. 79(C).
    13. Xiaopeng Guo & Jiaxing Shi & Dongfang Ren & Jing Ren & Qilin Liu, 2017. "Correlations between air pollutant emission, logistic services, GDP, and urban population growth from vector autoregressive modeling: a case study of Beijing," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(2), pages 885-897, June.
    14. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    15. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    16. Joseph I. Amuka & Fredrick O. Asogwa & Romanus O. Ugwuanyi & Ambrose N. Omeje & Tochukwu Onyechi, 2018. "Climate change and Life Expectancy in a Developing Country: Evidence from Greenhouse Gas (CO2) Emission in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 113-119.
    17. Kunze, Lars, 2014. "Life expectancy and economic growth," Journal of Macroeconomics, Elsevier, vol. 39(PA), pages 54-65.
    18. Massimiliano Marcellino, 2008. "A linear benchmark for forecasting GDP growth and inflation?," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 27(4), pages 305-340.
    19. Liddle, Brantley, 2015. "What Are the Carbon Emissions Elasticities for Income and Population? Bridging STIRPAT and EKC via robust heterogeneous panel estimates," MPRA Paper 61304, University Library of Munich, Germany.
    20. Naeem Akram, 2012. "Is climate change hindering economic growth of Asian economies?," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 19(2), pages 1-18, December.
    21. Vladimir Canudas-Romo & Stan Becker, 2011. "The crossover between life expectancies at birth and at age one: The imbalance in the life table," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 24(4), pages 113-144.
    22. Khambai Khamjalas, 2024. "Nexuses between Food, Energy, and Water Consumption on Urban-Rural Income Gap in South-Eastern Asian Countries Using Difference in Difference in Modelling Technique," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 186-195, March.
    23. Ramphul Ohlan, 2015. "The impact of population density, energy consumption, economic growth and trade openness on CO 2 emissions in India," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(2), pages 1409-1428, November.
    24. Ichiro Sugimoto, 2011. "Economic Growth of Singapore in the Twentieth Century:Historical GDP Estimates and Empirical Investigations," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 7858, September.
    25. Sanni Eneji Ademoh, 2017. "Population Growth and Life Expectancy: Predicting the Relationship," Scientific Modelling and Research, Online Science Publishing, vol. 2(1), pages 19-36.
    26. Audi, Marc & Ali, Amjad, 2016. "Socio-Economic Status and Life Expectancy in Lebanon: An Empirical Analysis," MPRA Paper 72900, University Library of Munich, Germany.
    27. Warsono Warsono & Edwin Russels & Wamiliana Wamiliana & Widiarti Widiarti & Mustofa Usman, 2019. "Vector Autoregressive with Exogenous Variable Model and its Application in Modeling and Forecasting Energy Data: Case Study of PTBA and HRUM Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 390-398.
    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. Sri Hasnawati & Mustofa Usman & Ahmad Faisol & Faiz A. M. Elfaki, 2023. "Analysis and Modeling Gross Domestic Product, Carbon Dioxide Emission, Population Growth, and Life Expectancy at Birth: Case Study in Qatar," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 467-483, March.
    2. Wamiliana Wamiliana & Edwin Russel & Iskandar Ali Alam & Widiarti Widiarti & Tuti Hairani & Mustofa Usman, 2024. "Modeling and Forecasting Closing Prices of some Coal Mining Companies in Indonesia by Using the VAR(3)-BEKK GARCH(1,1) Model," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 579-591, January.
    3. Mustofa Usman & Luvita Loves & Edwin Russel & Muslim Ansori & Warsono Warsono & Widiarti Widiarti & Wamiliana Wamiliana, 2022. "Analysis of Some Energy and Economics Variables by Using VECMX Model in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 91-102, March.
    4. Wang, Shaojian & Wang, Jieyu & Zhou, Yuquan, 2018. "Estimating the effects of socioeconomic structure on CO2 emissions in China using an econometric analysis framework," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 18-27.
    5. Mahalik, Mantu Kumar & Villanthenkodath, Muhammed Ashiq & Mallick, Hrushikesh & Gupta, Monika, 2021. "Assessing the effectiveness of total foreign aid and foreign energy aid inflows on environmental quality in India," Energy Policy, Elsevier, vol. 149(C).
    6. Dierk Herzer & Holger Strulik & Sebastian Vollmer, 2012. "The long-run determinants of fertility: one century of demographic change 1900–1999," Journal of Economic Growth, Springer, vol. 17(4), pages 357-385, December.
    7. Prempeh Kwadwo Boateng & Frimpong Joseph Magnus & Yeboah Samuel Asuamah, 2024. "The dynamics of financial development, environmental degradation, economic growth and population health in the Economic Community of West African States," Environmental & Socio-economic Studies, Sciendo, vol. 12(2), pages 13-27.
    8. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    9. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    10. Zhang, Linyun & Huang, Feiming & Lu, Lu & Ni, Xinwen, 2021. "Green financial development improving energy efficiency and economic growth: A study of CPEC area in COVID-19 era," IRTG 1792 Discussion Papers 2021-017, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    11. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    12. Adedoyin Isola Lawal, 2023. "The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO 2 in Africa: Evidence from Frequency Domain Estimates," Energies, MDPI, vol. 16(3), pages 1-27, January.
    13. Lawal, Adedoyin Isola & Ozturk, Ilhan & Olanipekun, Ifedolapo O. & Asaleye, Abiola John, 2020. "Examining the linkages between electricity consumption and economic growth in African economies," Energy, Elsevier, vol. 208(C).
    14. José Carlos Araújo Amarante & Cássio da Nóbrega Besarria & Helson Gomes de Souza & Otoniel Rodrigues dos Anjos Junior, 2021. "The relationship between economic growth, renewable and nonrenewable energy use and CO2 emissions: empirical evidences for Brazil," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(3), pages 411-431, June.
    15. Muhammad Zeeshan & Jiabin Han & Alam Rehman & Hazrat Bilal & Naveed Farooq & Muhammad Waseem & Arif Hussain & Muhammad Khan & Ilyas Ahmad, 2021. "Nexus between Foreign Direct Investment, Energy Consumption, Natural Resource, and Economic Growth in Latin American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 407-416.
    16. Anh The Vo & Duc Hong Vo & Quan Thai-Thuong Le, 2019. "CO 2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries," JRFM, MDPI, vol. 12(3), pages 1-20, September.
    17. Muhammad Shahbaz & Muhammad Shafiullah & Mantu K. Mahalik, 2019. "The dynamics of financial development, globalisation, economic growth and life expectancy in sub‐Saharan Africa," Australian Economic Papers, Wiley Blackwell, vol. 58(4), pages 444-479, December.
    18. Makoto Hirono, 2021. "Demographic change, human capital accumulation, and sectoral employment," Journal of Economics, Springer, vol. 132(2), pages 165-185, March.
    19. Ọláyínká Oyèkọ́lá, 2023. "Democracy Does Improve Health," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 105-132, February.
    20. Geoffrey Ssebabi Mutumba & Tomson Odongo & Francis Nathan Okurut & Vincent Bagire & Livingstone Senyonga, 2022. "Renewable and non-renewable energy consumption and economic growth in Uganda," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.

    More about this item

    Keywords

    Corbon Dioxide Emissions; Population Growth; Growth; Gross Domestic Product;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:journ2:2024-04-44. 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.