The Relationship Between Inflation And Carbon Emissions, And Their Role In The Indonesian Economy

English

Abstract

This research study aims to identify and analyze inflation and CO2 emissions and their
relationship to economic growth in Indonesia. The data used in this research comes from the
World Bank and is categorized as secondary data with the range of the period measured being
1995-2020. We use inflation, CO2 emissions, and GDP for economic growth as variables in
this study. The results, we indicate that the inflation rate is currently increasing as a result of
inflation that occurred in the past that occurred in Indonesia. An increase in inflation will
have a detrimental negative impact on economic growth so that it will reduce GDP. However,
the interesting thing is that GDP has a beneficial positive effect on carbon emissions which
indicates that an increase in economic growth in the past will increase carbon emissions at
this time. Thus, it is necessary to have policies that focus on handling carbon emissions as a
result of activities to increase economic growth. In addition, policies are also needed to
control the inflation rate in Indonesia