Carbon Dioxide and Agricultural Economics in the Sphere of Sustainable Economic Development
Keywords:Carbon Dioxide, Agricultural Economics,Sustainable Economic Development,Indonesia
This study uses annual time series data with a time period of 1985 to 2020. The data consists of various
sources. The data is secondary data collected from the Global Footprint Network, Penn World, and
World Bank. This research utilized the following two time-series models for the period from 1985 to
2020 for the following variables. The dependent variable in this study is the ecological footprint and
CO2 as an indicator of environmental damage. The independent variables in this study are the human
capital index (HC), economic growth (EG), infrastructure (Gx), and natural resource depletion (NR) as
indicators of economic activity and environmental changes as a result of economic activity. We found
that Indonesia is a country with a large enough open green space, especially on islands outside Java, so
it is very important to preserve Indonesia's nature as a supplier of world oxygen. On the other hand,
infrastructure development is quite massive in 2019-2021 in Indonesia to encourage economic growth.
Therefore, this study examines how Natural Resources Depletion (NR), human capital (HC), Economic
Growth (EG), and Infrastructure Investment (GX) affect environmental degradation from the
perspective of two important indicators, namely, Ecological footprint (EF) and CO2 from 1985 to 2020.
The results of the analysis using the ARDL approach show that in the long term human capital and
natural resources have a negative relationship with CO2, while Economic Growth and infrastructure
development have a positive relationship with CO2. Based on the ARDL results, it can be concluded
that the role of human capital is very important in preserving nature and infrastructure development
needs to be carried out while preserving nature or trying to minimize environmental damage.