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Industrialization and Consumption of Fossil Energy are the Main Determinants of Environmental Degradation in Water Catchment Areas in Indonesia

Hadi Sasana, Panji Kusuma Prasetyanto and Nuwun Priyono
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Hadi Sasana: Faculty of Economics, Tidar University, Magelang, Indonesia.
Panji Kusuma Prasetyanto: Faculty of Economics, Tidar University, Magelang, Indonesia.
Nuwun Priyono: Faculty of Economics, Tidar University, Magelang, Indonesia.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 6, 168-174

Abstract: Economic growth is the main goal of the global economy. However, increasing economic growth often results in increased CO2 emissions and encourages environmental degradation. This study analyzes the impact of industrialization, consumption of fossil energy, economic growth, and population activities on CO2 emissions in upland water catchment areas. Data analysis using panel data regression, in a span of 20 years. The results of the study show that economic factors, namely industrialization and consumption of fossil energy, are the main determinants of increasing CO2 emissions. Meanwhile, social aspects such as education, waste generation, and population have no effect on CO2 emissions.

Keywords: CO2 emissions; economic growth; fossil energy; industrialization (search for similar items in EconPapers)
JEL-codes: O44 Q43 Q56 (search for similar items in EconPapers)
Date: 2022
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