The environmental Kuznets curve in Indonesia: Exploring the potential of renewable energy
By Yogi Sugiawan, Shunsuke Managi. 2016
264 citations recorded by the source corpus.
There is an increasing interest in investigating the environmental Kuznets curve (EKC) hypothesis because it suggests the existence of a turning point in the economy that will lead to a sustainable development path. Although many studies have focused on the EKC, only a few empirical studies have focused on analyzing the EKC with specific reference to Indonesia, and none of them have examined the potential of renewable energy sources within the EKC framework. This study attempts to estimate the EKC in the case of Indonesia for the period of 1971–2010 by considering the role of renewable energy in electricity production, using the autoregressive distributed lag (ARDL) approach to cointegration as the estimation method. We found an inverted U-shaped EKC relationship between economic growth and CO2 emissions in the long run. The estimated turning point was found to be 7729 USD per capita, which lies outside of our sample period. The beneficial impacts of renewable energy on CO2 emission reduction are observable both in the short run and in the long run. Our work has important implications both for policymakers and for the future development of renewable energy in Indonesia.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/fccc3b555eb52c84b66f6a2e8836fefcfc00abf8
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Muhammad Shahbaz
- Avik Sinha
- N. Othman
- H. A. Bekhet
- Tuhin Sengupta
- Daniel Balsalobre
- Y. Wolde‐Rufael
- Monika Gupta
In Renewable Energy, Sustainability and the Environment
- Avik Sinha
- Muhammad Shahbaz
- Tuhin Sengupta
- N. Othman
- H. A. Bekhet
- Daniel Balsalobre
- Y. Wolde‐Rufael
- Monika Gupta
Citations in the corpus
- Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries (2017, background): “Sugiawan and Managi (2016) estimate the EKC for Indonesia during 1971-2010 but present contradictory empirical evidences.”
- Impact of urbanization growth on Malaysia CO2 emissions: Evidence from the dynamic relationship (2017, methodology): “The AIC tends to select maximum relevant lag length, whereas SBC tends to select the smallest possible lag length (Sugiawan & Managi, 2016).”
- Economic Growth and Sustainable Development in Indonesia: An Assessment (2018, background): “While investigating economic and environmental degradation, Sugiawan and Managi (2016) find a large gap between Indonesia’s current economic progress and the point at which it could have followed a sustainable development path.”
- Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India (2018, methodology): “Sugiawan and Managi [16] estimated the EKC for Indonesia over the period of 1971-2010.”