Analysis of Factors Affecting CO2 Emissions and the Kuznets Curve Environmental Hypothesis: Study on G-20 Countries 2013-2018 Period

Abstract

This study aims to determine the effect of economic growth, population, industrialization, energy consumption and fossil fuel consumption of CO2 emissions in G-20 countries. Panel data is used as a data analysis technique in this study. The variables used are based on the concept of the Environmental Kuznets Curve. The Kuznets hypothesis explains that an increase in economic growth reduces inequality and poverty in a certain period of time (or referred to as the turning point limit). This study focuses on the G-20 countries in the 2013-2018 period. Based on the regression results of the CO2 emission variables (CO2), gross domestic product (GDP), energy consumption (KE), population (JP), industrialization (IND) and fossil fuel consumption (BBF) it was found that all independent variables simultaneously (GDP, KE, JP, IND and BBF) have a significant effect on the dependent variable (CO2). Furthermore, partially significant variables that affect CO2 emissions are GDP, JP, IND and BBF, while the variables that have no significant effect on CO2 emissions are only KE. Support and commitment to policies both nationally and regionally are needed to reduce environmental degradation through inclusive economic growth in G-20 countries.