Causality of Environmental Degradation and Economic Growth in Indonesia
Sri Rahayu Budi Hastuti, Didit Welly Udjianto, Rini Dwi Astuti, Ilyasin Aditya Rahman
International Journal of Environment and Climate Change · pp. 364–370 · Published 9 Jul 2024
10.9734/ijecc/2024/v14i74277Abstract
Nowdays, the issue of global warming is being widely discussed in all countries, both developed and developing countries, because of its negative impact on the environment. This study aims to develop an integrated analytical framework of causality between energy consumption, carbon emissions, financial development, trade openness, and economic growth in Indonesia, 1990-2021. This study provides research benefits in the form of a set of empirical evidence to assist in developing a series of key strategies that can improve environmental quality through sustainable development. With granger causality analysis and vector autoregression model, this study provides results that high economic growth and energy consumption can cause environmental degradation through increased carbon gas emissions.
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