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

Hadi Sasana, Jaka Aminata


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 (CO2) emissions to environment. The aim of this study was to analyze the effect of energy-based economic growth on CO2 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 CO2 emissions, while renewable energy consumption negatively affected CO2 emissions. The environmental Kuznets curve (EKC) hypothesis was not confirmed in Indonesian case, and economic globalization had no effect on CO2 emissions.

Keywords: Environmental Kuznets Curve, economic growth, CO2 emissions, renewable energy, globalization

JEL Classifications: H25; Q42; Q43


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