Energy consumption, economic growth and environmental pollutants in Indonesia

Yaghoob Jafari, Jamal Othman, Abu Hassan Shaari Md Nor

Research output: Contribution to journalArticle

50 Citations (Scopus)

Abstract

This paper examines the long run Granger causality relationship between economic growth, carbon dioxide emissions and energy consumption from 1971 to 2007 in Indonesia, controlling for capital stock and urban population. Using Toda-Yamamoto (TY) procedure, it has been found that there was no relationship between these variables except the causality effect that runs from urban population to energy consumption. The absence of these linkages suggests that energy conservation strategies in Indonesia may not produce desirable effect on emission reductions, and Indonesia does not have to relinquish economic growth. However, the results may not be sufficient to warrant Indonesia's choice of specific policies and strategies to limit carbon emissions in the context of combating global climate change. This is because the study does not take into account net carbon release from deforestation and forest degradation. There seems to be substantial scope for Indonesia to limit her CO 2 emission via reducing deforestation and improved forest management through the REDD Plus framework.

Original languageEnglish
Pages (from-to)879-889
Number of pages11
JournalJournal of Policy Modeling
Volume34
Issue number6
DOIs
Publication statusPublished - Nov 2012

Fingerprint

Indonesia
Economic growth
Energy consumption
Deforestation
Urban population
Carbon dioxide emissions
Degradation
Global climate change
Causality
Granger causality
Linkage
Warrants
Emission reduction
Carbon emissions
Forest management
Energy conservation
Capital stock
Carbon

Keywords

  • Carbon dioxide emissions
  • Economic growth in Indonesia
  • Energy consumption

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Energy consumption, economic growth and environmental pollutants in Indonesia. / Jafari, Yaghoob; Othman, Jamal; Md Nor, Abu Hassan Shaari.

In: Journal of Policy Modeling, Vol. 34, No. 6, 11.2012, p. 879-889.

Research output: Contribution to journalArticle

Jafari, Yaghoob ; Othman, Jamal ; Md Nor, Abu Hassan Shaari. / Energy consumption, economic growth and environmental pollutants in Indonesia. In: Journal of Policy Modeling. 2012 ; Vol. 34, No. 6. pp. 879-889.
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