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Abstract
This study aims to analyze the effect of energy resources, energy consumption, and road infrastructure on economic growth and their effect on CO2 emissions in Indonesia. This study uses time series data in Indonesia for the period 2000 to 2019 and the analytical model used is the Auto Regressive Distributed Lag (ARDL) model. The results found in this study are variables that have a significant effect on economic growth in the short term are road infrastructure in the same period, in the previous period, as well as in the previous 2 periods and resources. Meanwhile, the ones that have a significant effect in the long term are road infrastructure and energy resources. Variables that have a significant effect on CO2 emissions in the short term are road infrastructure, energy consumption in the previous period, economic growth in the previous period, energy consumption and energy resources. While the variables that influence in the long term are economic growth and energy resources.
Highlights
In the 18th century, the industrial revolution that occurred in England had a significant impact on industrial development in the world today
Due to the limitations of this study, this study focuses more on infrastructure indicators on the length of roads built in Indonesia because in recent years economic development in Indonesia has focused more on infrastructure development so that between regions can be connected
The second research model is to answer the hypothesis whether the variables of economic growth, energy consumption, energy resources, and infrastructure have a positive effect on CO2 emissions both in the long and short term: (2)
Summary
In the 18th century, the industrial revolution that occurred in England had a significant impact on industrial development in the world today. The development of this industry accelerates the pace of the world economy caused by the rapid pace of industrial processes that occur. According to Suhardi and Purwanto (2015), Indonesia is the fourth largest emitter per capita in the world after China, America and the European Union. The sector that causes high levels of emissions in Indonesia according to the Secretary General of National Energy Council (2019) results from industries that use 70% of fossil energy from the total energy consumed
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