The Correlation Role of Carbon Emissions and Renewable Energy and Their Impact on Economic Growth in Indonesia

English

Abstract

Carbon emissions and renewable energy use will be evaluated to see how they affect
Indonesia's GDP development. For this study, we rely on information from the World
Bank that covers the years 1991 through 2020. Researchers employ carbon dioxide
(CO2) emissions, renewable energy (RE) consumption, and GDP as independent
variables. Vector autoregressive (VAR) analysis was performed on these variables. As a
result of higher emissions in the past, the trend of carbon emissions is currently upward.
Consumption of renewable energy sources, on the other hand, has contributed to
economic expansion in the past. If there is a positive association, it will aid in the creation
of a sustainable economy. The continued growth of renewable energy is something that
should be encouraged through regulations that promote its use. Direct investment is one
example of a macroeconomic policy that has to be supported and harmonised with energy
efficiency programmes to ensure both economic development and environmental
sustainability.