Abstract
This study aims to fill the gaps in previous research in the form of development studies between production and consumption biofuels, green economic growth and environmental degradation in 6 selected Asia Pacific countries (Australia, China, India, Indonesia, South Korea and Thailand) by considering the determinants during the period 2007-2020. This study used a simultaneous panel model approach. The important findings of this study are grouped into 4 analysis models. First, biofuels consumption, capital formation, labor and foreign direct investment have a positive effect on biofuels production. Second, biofuels production, foreign direct investment, GDP per capita and trade openness have a positive effect on biofuels consumption. Third, biofuels production, biofuels consumption and technological innovation have a positive effect on green economic growth, while militarization has a negative effect. Fourth, biofuels production, biofuels consumption, green economic growth and cleaner energy have a negative effect on environmental degradation, while population and poverty have a positive effect. The development of biofuels oil is aimed at realizing the transition from fossil-based energy to biomass-based energy which is expected to be environmentally friendly and sustainable. Biofuels oil has great potential in supporting renewable energy development to increase green economic growth and reduce environmental degradation.Keywords: Biofuels Production, Biofuels Consumption, Green Economic Growth, Environmental Degradation, Simultaneous Panel Model, Asia PacificJEL Classification: C33, C51, Q21, Q43DOI: https://doi.org/10.32479/ijeep.11563
Highlights
Biofuels production and consumption conditions, as well as green economic growth are very important for the formulation of energy policies and optimal environmental conditions
Climate change occurs because the use of large amounts of non-renewable energy, especially fossil fuels, will increase greenhouse gas emissions which have an impact on environmental quality such as further warming and long-term changes to the climate (Chen et al, 2019)
Based on the gaps of previous research, this study aims to analyze the relationship between biofuels production and consumption, green economic growth and environmental degradation has become an important issue for policy makers in recent years to achieve a sustainable development context
Summary
Biofuels production and consumption conditions, as well as green economic growth are very important for the formulation of energy policies and optimal environmental conditions. Climate change occurs because the use of large amounts of non-renewable energy, especially fossil fuels, will increase greenhouse gas emissions which have an impact on environmental quality such as further warming and long-term changes to the climate (Chen et al, 2019). Increasing global awareness about the issue of climate change is driven by the Kyoto Protocol agreement in 1997 which obliges industrialized countries to limit their greenhouse gas emissions and start shifting from dependence on fossil fuels to using renewable energy sources because renewable energy sources are carbon-free energy sources. Within the scope of macroeconomics, energy is an input that plays an important role in economic growth affecting the growth process. The trend of public consumption in the energy sector is currently still dominated by non-renewable energy sources (Dogan and Ozturk, 2017), the rate of growth in CO2 emissions due to consumption of non-renewable energy has caused many problems
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