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

Hadi Sasana and Jaka Aminata
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Hadi Sasana: Faculty of Business and Economics, University of Diponegoro, Indonesia
Jaka Aminata: Faculty of Business and Economics, University of Diponegoro, Indonesia

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 2, 117-122

Abstract: 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 hypothesis was not confirmed in Indonesian case, and economic globalization had no effect on CO2 emissions.

Keywords: Environmental Kuznets Curve; economic growth; CO 2 emissions; renewable energy; globalization (search for similar items in EconPapers)
JEL-codes: H25 Q42 Q43 (search for similar items in EconPapers)
Date: 2019
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