Carbon Dioxide and Agricultural Economics in the Sphere of Sustainable Economic Development

English

Abstract

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.