THE INFLUENCE OF HUMAN CAPITAL AND ECONOMIC GROWTH ON CARBON EMISSIONS AND RENEWABLE ENERGY UTILIZATION IN INDONESIA

Abstract

This study attempts to examine the relationship between human capital, economic growth, the impact of carbon emissions, and the adoption of renewable energy in Indonesia. The research data is taken from secondary data from the World Bank covering the period from 2004 to 2020. The variables analyzed include Health, GDP Growth, Carbon Emissions, and Renewable Energy, using vector autoregressive analysis to obtain an overview of the impact of carbon emissions and renewable energy utilization. The results show that there is a negative correlation between health and carbon emissions, which indicates that increasing human capital through better health has the potential to increase carbon emissions. Improved human health usually implies increased economic productivity and technological infrastructure, which ultimately increases the use of energy resources and the potential for increasing carbon emissions. On the other hand, increased economic growth provides an impetus for more efficient and environmentally friendly technologies. As the economy grows, more resources and investment are available to develop renewable energy, which can reduce dependence on fossil fuels that significantly contribute to increasing carbon emissions in Indonesia. Therefore, policymakers are considering sustainable development techniques to reduce carbon emissions while promoting economic growth and human resource development