Projected CO2 Emissions and Social Welfare in Indonesia

English

Abstract

This study examines the causality between various environmental, social, and economic related variables such as CO2 emissions, consumption, investment, and poverty in Indonesia. This study uses vectors autoregressive to model causal relationships between variables in the analysis of 21 years of data from 2000 to 2020. This study relies on data provided by the World Bank. From the various variables we observed, we found that poverty, consumption, and investment are significantly related to CO2 emissions, meaning that in the current Indonesian economy, increased investment will cause the economy to spin faster, which is thought to also lead to consumption levels. increase. This is what causes the higher number of CO2 emissions in Indonesia, this happens because of the lack of anticipation and implementation of green policies in Indonesia.