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Economic Growth and CO2 Emission in ASEAN: Panel-ARDL Approach

Author

Listed:
  • Feriansyah

    (Department of Economics, Pertamina University, Jakarta, Indonesia)

  • Hari Nugroho

    (Department of Economics, Pertamina University, Jakarta, Indonesia)

  • Aura Asyda Larre

    (Department of Economics, Pertamina University, Jakarta, Indonesia)

  • Qori’atul Septiavin

    (Department of Economics, Pertamina University, Jakarta, Indonesia)

  • Cintya Khairun Nisa

    (Department of Economics, Pertamina University, Jakarta, Indonesia)

Abstract

This paper investigates the relationship between economic growth and CO2 emissions from 1994 to 2018 using a panel approach from eight ASEAN countries. We found an established result using the Panel ARDL Pooled Mean Group method. First, the panel Cointegration analysis shows a significant long-term relationship between GDP and CO2 emissions. Second, the error correction mechanism shows a stable and consistent value. Third, we found that GDP has a significant long-term effect on CO2 emissions in ASEAN countries. Fourth, our results also show that GDP significantly impacts CO2 emissions in the short term for four countries: Indonesia, Malaysia, Thailand, and Cambodia. Based on these empirical results, implications and policy recommendations are presented. ASEAN countries should implement green growth policies by encouraging economic development which does not suppress the environment.

Suggested Citation

  • Feriansyah & Hari Nugroho & Aura Asyda Larre & Qori’atul Septiavin & Cintya Khairun Nisa, 2022. "Economic Growth and CO2 Emission in ASEAN: Panel-ARDL Approach," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 68, pages 102-113, Desember.
    • Handle: RePEc:lpe:efijnl:202208
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; gross domestic product; CO2 emission; panel ARDL;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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