The Influence Of Economic Factors And Energy Use On Co2 Emissions In Indonesia 1990-2022
Keywords:
CO₂ emissions,, electricity consumption GDP,, Foreign Direct Investment,, renewable energy,, fossil fuel consumption,, Error Correction Model.
Abstract
CO₂ emissions are one of the environmental challenges faced by many developing countries, including Indonesia. The increase in economic activities and the use of fossil fuel-based energy can raise CO₂ emissions, which may lead to climate change and environmental degradation. This study aims to estimate the effect of electricity consumption, GDP, FDI, renewable energy, and fossil fuel consumption on CO₂ emissions in Indonesia during 1990-2022. This study uses time series data obtained from the World Bank and applies the Domowitz-Elbadawi Error Correction Model (ECM). The results show that in the short run, renewable energy use has a negative effect on CO₂ emissions, while electricity consumption, GDP, FDI, and fossil fuel consumption do not affect CO₂ emissions. In the long run, GDP, FDI, renewable energy use, and fossil fuel consumption have a negative effect on CO₂ emissions, while electricity consumption does not affect CO₂ emissions in Indonesia. Based on the findings, the government is expected to increase the use of renewable energy, encourage the adoption of environmentally friendly technology, and strengthen environmental management policies to support sustainable development.
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Annisa, A., Yulianita, A., & Bashir, A. (2025). The impact of economic growth, inequality, and resource depletion on CO2 emissions in Indonesia: Evidence from the ARDL model. Journal of Regional Financing and Development Perspectives, 13(3), 2355–8520. https://doi.org/10.22437/ppd.v13i3.40844
Arifah, L., & Shahmi, M. A. (2023). Economic growth, foreign direct investment and carbon emissions in Indonesia for the period 1990–2022: Elasticity: Journal of Development Economics, 5(1), 92–98. http://elastisitas.unram.ac.id/index.php/elastisitas/article/view/79
Armayani, R. R., Lubis, H. K., & Sari, N. (2022). The relationship between economics and the environment: A literature review. Sinomics Journal: Scientific Publications in Economics and Accounting, 1(2), 175–182. https://doi.org/10.54443/sinomika.v1i2.181
Central Statistics Agency. (2015). Indonesian Economic Report. https://www.bps.go.id/id/publication/2015/09/15/381b2cd8032e7471944a4103/laporan-perekonomian-2015.html
Firmansyah, D., Ahwiddhana, F. A., & Prasmasha, R. R. (2024). Economic analysis of the use of renewable energy in Indonesia for sustainable development. Journal of Academic Media (JMA), 2(12), 3031–5220. https://jurnal.mediaakademik.com/index.php/jma/article/view/1117
Haerani, D., Sukmawati, A., Seran, A., Putra, H., Razali, R., Iztihara, R., Salam, B. G., Nurhasan, D., Abikusno, R. M., Nugraha, A. N., Patrick, P., Tangkudung, A. G., & Pakpahan, M. (2023). Business innovation as a solution to accelerate the transition of new and sustainable renewable energy to realize environmental sustainability. Innovative: Journal of Social Science Research, 3(6), 8356–8371. https://j-innovative.org/index.php/Innovative/article/view/6926
Hasbi. (2024). The impact of economic factors on changing carbon emission landscape ASEAN with ARDL approach. Performance, 28(2), 173–194. https://doi.org/10.24002/kinerja.v28i2.8583
Idroes, G. M., Hardi, I., Noviandy, T. R., Sasmita, N. R., Hilal, I. S., Kusumo, F., & Idroes, R. (2023). A deep dive into Indonesia's CO2 Emissions: The role of energy consumption, economic growth and natural disasters. Economics Journal of Economics, 1(2), 69–81. https://doi.org/10.60084/eje.v1i2.115
Juliani, R., Rahmayani, D., Akmala, N. T., & Janah, L. F. (2021). Analysis of the causality of tourism, fossil energy consumption, economic growth and CO2 emissions in Indonesia. Journal of Development Economic Dynamics, 4(2), 124–139. https://ejournal.undip.ac.id/index.php/dinamika_pembangunan/article/view/40562/0
Koengkan, M., & Fuinhas, J. A. (2017). The negative impact of renewable energy consumption on carbon dioxide emissions: An empirrical evidence from south American countries. Brasileira de Energias Renovavieis Magazine. https://revistas.ufpr.br/rber/article/view/49252
Magazzino, C. (2016). The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach. Cogent Economics & Finance, 34(1). https://doi.org/10.1080/23322039.2016.1152729
Marwa, T., Bashir, A., Atiyatna, D. P., Hamidi, I., Mukhlis, & Sukanto. (2022). The link between economic growth, electricity consumption, and CO2 emissions: Evidence from Indonesia. Journal of Economics, 11(6), 253–272. https://repository.unsri.ac.id/80582
Mendonça, A. K. S., Barni, G. de A. C., Moro, M. F., Bornia, A. C., Kupek, E., & Fernandes, L. (2020). Hierarchical modeling of the 50 largest economies to verify the impact of GDP, population and renewable energy generation in CO2 emissions. Sustainable Production and Consumption, 22, 58–67. https://doi.org/10.1016/j.spc.2020.02.001
Nadeak, S. A. H, & Nasirudin, N. (2023). The effect of GDP per capita and energy consumption on GHG emissions in Indonesia. Indonesian Journal of Economics and Development, 23(2), 128–145. https://doi.org/10.21002/jepi.2023.09
Oluwaseun, A. (2025). Analyzing the Impact of economic growth, FDI and energy use on CO2 emission in Kenya: An ARDL Approach. Research Square. https://www.researchsquare.com/article/rs-6058314/v1
Pongtuluran, G. L. & Setyari, N. P. W. (2026). The effect of renewable and non-renewable energy consumption on carbon emissions in Indonesia. Journal of Information Systems and Business Management Publications, 5. https://journalcenter.org/index.php/jupsim/article/view/6358
Putra, B. R., & Rusgianto, S. (2021). Analysis of energy consumption and carbon emissions in Indonesia. Journal of Development Economics, 19(1), 44–56. https://doi.org/10.22219/jep.v21i01.25337
Putri, A. R., Gunarto, T., Emalia, Z., & Murwiati, A. (2022). The effect of economic growth, population growth, and energy consumption on CO2 emissions in Indonesia. BULLET: Journal of Multidisciplinary Science, 1(6), 1070–1080. https://journal.mediapublikasi.id/index.php/bullet/article/view/1767
Rahayu, R. P., Thine, E. Y., & Aini, F. A. N. (2024). Green economic transition: Analysis of the factors causing the increase in CO2 emissions to welcome a sustainable economy in Indonesia. Inspire Journal Economics and Development Analysis, 4(2), 1–18. https://ejournal.uksw.edu/inspire/article/view/17198
Rahmat, H. K. (2024). Realizing sustainable development with an environmental perspective: Solutions to global challenges. Journal of Islamic Guidance, Counseling and Counseling, 7(3), 1057–1070. https://jurnal.pabki.org/index.php/alisyraq/article/view/1045
Rizki, C. A., & Anggareni, P. W. (2022). Analysis of the influence of foreign direct investment, domestic investment, and gross domestic product on carbon emissions in Indonesia. Journal of Development Economic and Social Studies, 1(4), 529–538. https://jdess.ub.ac.id/index.php/jdess/article/view/72
Rumahorbo, R. P., & Nursadi, H. (2023). New renewable energy water resources: Benefits and impacts on the environment. Journal of Radiology, 31(1), 185. https://jurnal.universitasdarmaagung.ac.id/jurnaluda/article/view/2967
Sasana, H., & Aminata, J. (2019). Energy subsidy, energy consumption, economic growth, and carbon dioxide emission: Indonesian case studies. International Journal of Energy Economics and Policy, 9(2), 117–122. https://doi.org/10.32479/ijeep.7479
Shahbaz, M., F. Nasir, M. A. & Roubaud, D. (2018). Environmental degradation in France: The effects of FDI, financial development, and energy innovations. Energy Economics, 74, 843–857. https://doi.org/10.1016/j.eneco.2018.07.020
Solikah, A. A., & Bramastia. (2024). Systematic literature review: A study of the potential and utilization of new and renewable energy resources in Indonesia. Journal of New and Renewable Energy, 5(1), 27–43. https://doi.org/10.14710/jebt.2024.21742
Walujanto, Suharyati, Pambudi S. H., Wibowo, J. L., & Pratiwi, N. I. (2018). Indonesia Energy Outlook. 1–76. https://www.esdm.go.id/assets/media/content/content-outlook-energi-indonesia-2018-bahasa-indonesia
Published
2026-06-29
How to Cite
Trisnawati, N., & Muhammad Anas. (2026). The Influence Of Economic Factors And Energy Use On Co2 Emissions In Indonesia 1990-2022. International Journal of Economics, Business and Innovation Research, 5(04), 2535-2554. https://doi.org/10.63922/ijebir.v5i04.4777
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