Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission: Indonesian Case Studies

Abstract

<p>In the globalization era, the process of economic growth must be supported by energy; although, it might be leave harmfully residual accumulation such carbon dioxide (CO<sub>2</sub>) emissions to environment. The aim of this study was to analyze the effect of energy-based economic growth on CO<sub>2</sub> emissions. Estimation using multiple linear regression (multiple regression model) with ordinary least square method to analyze collected data. The results showed that economic growth, primary energy consumption, and population growth positively affected CO<sub>2</sub> emissions, while renewable energy consumption negatively affected CO<sub>2</sub> emissions. The environmental Kuznets curve (EKC) hypothesis was not confirmed in Indonesian case, and economic globalization had no effect on CO<sub>2</sub> emissions.</p><p><strong>Keywords:</strong> Environmental Kuznets Curve, economic growth, CO<sub>2</sub> emissions, renewable energy, globalization</p><p><strong>JEL Classifications</strong>: H25; Q42; Q43</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.7479">https://doi.org/10.32479/ijeep.7479</a></p>