Exploring the linkage between globalization and environmental degradation: a disaggregate analysis of Indonesia

Yasir Rasool (), Du Jianguo () and Kishwar Ali ()
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Yasir Rasool: Jiangsu University
Du Jianguo: Jiangsu University
Kishwar Ali: Jiangsu University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 7, No 22, 16887-16915

Abstract: Abstract In recent years, there has been a significant increase in global interaction between nations, which has positive and negative impacts on environmental health. To better understand the effects of globalization on carbon emissions in Indonesia, the study adopted auto-regressive distributed lag approach to analyze the long-term and short-term relationships among variables and the vector error correction method to find the causal interaction among variables from 1990 to 2020. The study revealed that economic globalization positively impacts on CO2 emissions, while social globalization mitigates environmental degradation. However, political globalization and human capital does not appear to affect CO2 emissions significantly. Furthermore, we found that energy consumption and economic growth contribute to increased emissions. The study also observed the environmental Kuznet curve decreases environmental deterioration and increases environmental sustainability in the region. Therefore, our results suggest that Indonesia should carefully regulate trade openness and foreign direct investment to minimize its negative environmental impact. Additionally, we recommend encouraging the social aspects of globalization to help mitigate CO2 emissions.

Keywords: CO2 emissions; Globalization index; Human capital index; Indonesia (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03315-9

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