The The Influence Of Fuel Consumption And Co2 Emissions On Economic Growth

English

Abstract

This study was conducted to determine the impact and relationship between emissions on economic growth in Indonesia. This study uses data from a period of 40 years, namely from 1974 to 2014 using vector modeling to be able to understand the causal relationship between variables. The data from this study were obtained from the world bank. The variables that we use in this study are the GDP development variable, the fossil fuel consumption variable, and the CO2 emission variable from the Manufacturing and Construction Industry in Indonesia. We found that all variables had no causal relationship. In the short term, we find that all variables influence each other, such as GDP developments which positively affect the consumption of fossil fuels, GDP developments which also positively affect manufacturing and construction CO2 emissions, in addition to manufacturing and construction CO2 emissions that have a direct positive impact on fossil fuel consumption.