How do Economic Growth, Population Growth, and Urbanization Affect Ecological Footprint in Indonesia

Abstract

This paper explores the intricate relationship between economic growth, population growth, and urbanization on Indonesia's ecological footprint from 1961 to 2022. Using the Vector Error Correction Model (VECM), our econometric analysis has identified the causal path. The results of the Granger Causality Tests indicate a causal relationship from the ecological footprint variable to the economic growth variable, the population growth variable to the ecological footprint variable, and urbanization to economic growth and population growth. In the long run, economic growth has a positive and significant impact on the ecological footprint. In the short run, economic growth, population growth, and urbanization all significantly affect the ecological footprint, highlighting the need for immediate action to address these issues.