Carbon Emissions, Energy Consumptions, and Production Activity: Now and Future

DOI

10.2991/icied-17.2018.23How to use a DOI?

Keywords

economic growth; energy consumption; carbon emissions; kaya identity; dynamic panel data

Abstract

Most of the countries in the world, including Indonesia, have agreed to take action of keeping global warming below 2§ Celsius in this century, as ratified in the Paris Agreement. Indonesia is committed to reduce their greenhouse gasses (GHG) emissions by 29% in 2030 without any international support. This study aims to analyze the nexus between carbon emission, energy consumption, and economic productivity; and moreover, identifies which factor in Kaya identity that affects more to the carbon emission. By employing energy and emission data from International Energy Agency (IEA), and macroeconomic data of 34 Provinces from Central Bureau of Statistics (BPS), three dynamic models confirm that there is causality between those three variables. Decomposition results of Kaya identity showed that during 1993-2014, there was an increasing trend of carbon emissions mostly affected by carbon efficiency (ratio of CO2 emitted per energy consumption) and economic productivity. On the other hand, energy intensity of economy showed a promising decline trend over this period, indicating that less energy was needed to get a rupiah of GDP. Assuming the growth rate of GDP per capita is steady at 3% per year, Indonesia needs to further reduce its carbon content of energy at 4.5% per year and energy intensity at 2% per year, so that the INDC target in 2030 can successfully be achieved.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dwiputra Ahmad Ramdani
AU  - Gisty Ajeng Septami
PY  - 2017/12
DA  - 2017/12
TI  - Carbon Emissions, Energy Consumptions, and Production Activity: Now and Future
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 123
EP  - 127
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.23
DO  - 10.2991/icied-17.2018.23
ID  - AhmadRamdani2017/12
ER  -