Causality Between Carbon Dioxide (CO2) Emissions and Economic Growth in Indonesia

Abstract

Economic growth and environmental protection are two goals that are often considered contradictory. Strong economic growth tends to require high energy consumption, which is often obtained from fossil fuel sources. The aim of this research isthe relationship between carbon dioxide (CO2) emissions and economic growth in Indonesia. This type of research is descriptive qualitative with a quantitative approach, the data source in this research uses 41 year time series data in the period 1980 - 2021 in Indonesia, the research was attempted using Multivariate Time Series Analysis Panel Information on Vector Auto Regression (VAR) combined with Vector Error Correction Form (VECM) uses the statistical application EViews 9. 0. Economic development is the progress of activity in the economy which causes the creation of goods and services in society to increase and the abundance of society to increase, carbonium dioxide (CO2) is a colorless, odorless gas compound that obtained from incomplete combustion of materials containing charcoal or organic matter. Research results show that this lack of connection is also due to the high dependence on fossil fuel sources, which is almost 2 thirds of total energy use, so that increasing energy use can affect carbonium dioxide (CO2) emissions in Indonesia. The ever-increasing number of means of transportation also greatly influences the increase in the use of natural oil, which in the future could disrupt the balance of the area's ecosystem which has an impact on other living creatures.