Investment in Renewable Energy

Oct 13, 2025 by talynt.org 137 views

The Linkage of Gross Domestic Products, Energy Consumption, and Carbon Gas Emissions in the Application of Sustainable Economy in Indonesia

Introduction

The world is currently facing a significant challenge in achieving sustainable economic growth while minimizing the negative impact on the environment. The increasing demand for energy has led to a significant increase in carbon gas emissions, which has a detrimental effect on the environment. In this context, this study aims to explore the relationship and influence between economic growth, energy consumption, and carbon gas emissions in the implementation of sustainable economy in Indonesia in the period 1990 to 2020.

The Importance of Energy Consumption in Economic Growth

Energy consumption is a crucial driver of economic industrialization and a means to collect development capital. It functions as a complement and substitute in producing economic output. In Indonesia, energy consumption is a significant contributor to the country's economic growth. The increasing demand for energy has led to an increase in industrial production capacity, which in turn has contributed to the country's GDP growth.

The Impact of Carbon Gas Emissions on the Environment

However, the increasing demand for energy has also led to a significant increase in carbon gas emissions, which has a detrimental effect on the environment. Carbon gas emissions contribute to climate change, which has a negative impact on the environment and human health. In Indonesia, the increasing carbon gas emissions have become a serious challenge in achieving a sustainable economy.

The Relationship Between Energy Consumption, Carbon Gas Emissions, and GDP

This study uses a quantitative descriptive approach, where the data used is secondary data. The type of data analyzed is time series data using the Vector Error Correction Model (VECM) analysis method with the help of EViews 12.0 analysis tools. The results showed that energy consumption and carbon gas emissions had a negative influence in short-term relationships, but had a positive impact and had a long-term relationship on Indonesian Gross Domestic Product (GDP).

The Challenge of Achieving Sustainable Economy in Indonesia

Indonesia's economic dependence on energy consumption, especially from non-renewable resources, is a serious challenge in an effort to achieve a sustainable economy. On the one hand, high energy consumption encourages GDP growth by increasing industrial production capacity. However, on the other hand, this also contributes to increasing carbon gas emissions, which have a negative impact on the environment.

The Need for a Holistic Approach to Sustainable Economy

In the short-term context, sudden increase in energy consumption often causes a surge in greenhouse gas emissions. This creates a cycle that has the potential to be detrimental, where economic growth can be hampered by environmental damage. However, in the long run, investment in environmentally friendly technology and renewable energy can help reduce emissions without sacrificing economic growth.

The Role of Education in Achieving Sustainable Economy

The implementation of sustainable economy is not only the responsibility of the government, but also involves the private sector and the community. Education about the importance of energy conservation and sustainable use of resources needs to be disseminated to create collective awareness in maintaining the sustainability of natural resources. Thus, economic growth and environmental sustainability can go hand in hand for the welfare of future generations.

Conclusion

Overall, the relationship between gross domestic products, energy consumption, and carbon gas emissions is complex and requires serious attention in economic policy planning. Through a deep understanding of this dynamics, Indonesia can take strategic steps to achieve sustainable economic goals. The government, private sector, and community need to work together to achieve a sustainable economy that balances economic growth with environmental sustainability.

Recommendations

Based on the findings of this study, the following recommendations are made:

Investment in Renewable Energy: The government should invest in renewable energy sources, such as solar and wind power, to reduce dependence on non-renewable resources.
Energy Efficiency: The government should implement policies to promote energy efficiency, such as increasing the use of energy-efficient appliances and buildings.
Education and Awareness: The government, private sector, and community should work together to educate people about the importance of energy conservation and sustainable use of resources.
Technological Innovation: The government should invest in research and development of environmentally friendly technology to reduce emissions without sacrificing economic growth.

By implementing these recommendations, Indonesia can achieve a sustainable economy that balances economic growth with environmental sustainability.
Frequently Asked Questions (FAQs) on the Linkage of Gross Domestic Products, Energy Consumption, and Carbon Gas Emissions in the Application of Sustainable Economy in Indonesia

Q: What is the main objective of this study?

A: The main objective of this study is to explore the relationship and influence between economic growth, energy consumption, and carbon gas emissions in the implementation of sustainable economy in Indonesia in the period 1990 to 2020.

Q: What is the significance of energy consumption in economic growth?

A: Energy consumption is a crucial driver of economic industrialization and a means to collect development capital. It functions as a complement and substitute in producing economic output.

Q: What is the impact of carbon gas emissions on the environment?

A: Carbon gas emissions contribute to climate change, which has a negative impact on the environment and human health.

Q: What is the relationship between energy consumption, carbon gas emissions, and GDP?

A: The results of this study showed that energy consumption and carbon gas emissions had a negative influence in short-term relationships, but had a positive impact and had a long-term relationship on Indonesian Gross Domestic Product (GDP).

Q: What are the challenges of achieving sustainable economy in Indonesia?

A: Indonesia's economic dependence on energy consumption, especially from non-renewable resources, is a serious challenge in an effort to achieve a sustainable economy.

Q: What is the need for a holistic approach to sustainable economy?

A: A holistic approach to sustainable economy involves energy efficiency, reducing emissions, and technological innovation.

Q: What is the role of education in achieving sustainable economy?

A: Education about the importance of energy conservation and sustainable use of resources needs to be disseminated to create collective awareness in maintaining the sustainability of natural resources.

Q: What are the recommendations for achieving sustainable economy in Indonesia?

A: The following recommendations are made:

Investment in Renewable Energy: The government should invest in renewable energy sources, such as solar and wind power, to reduce dependence on non-renewable resources.
Energy Efficiency: The government should implement policies to promote energy efficiency, such as increasing the use of energy-efficient appliances and buildings.
Education and Awareness: The government, private sector, and community should work together to educate people about the importance of energy conservation and sustainable use of resources.
Technological Innovation: The government should invest in research and development of environmentally friendly technology to reduce emissions without sacrificing economic growth.

Q: What are the implications of this study for policymakers and stakeholders?

A: The findings of this study have significant implications for policymakers and stakeholders in Indonesia. They should take into account the complex relationship between energy consumption, carbon gas emissions, and GDP when making decisions about energy policy and sustainable development.

Q: What are the limitations of this study?

A: This study has several limitations, including the use of secondary data and the focus on a specific time period. Future studies should aim to address these limitations and provide more comprehensive insights into the relationship between energy consumption, carbon gas emissions, and GDP.

Q: What are the future research directions for this study?

A: Future research directions for this study include:

Investigating the impact of energy consumption on economic growth in other countries
Examining the relationship between energy consumption and carbon gas emissions in other sectors
Developing a more comprehensive model of the relationship between energy consumption, carbon gas emissions, and GDP

By addressing these research directions, policymakers and stakeholders can gain a deeper understanding of the complex relationship between energy consumption, carbon gas emissions, and GDP, and make more informed decisions about energy policy and sustainable development.