Environmental Degradation by Economic Activity: An Empirical Comparison Study in Indonesia and Germany

DOI

10.2991/978-94-6463-204-0_42How to use a DOI?

Keywords

CO2 Emissions; Environmental Degradation; Error Correction Model

Abstract

Sustainable economic growth must be the primary concern in every country to avoid environmental degradation, especially in G20 members. As a form of multilateral cooperation, policies and outcome of G20 discussions can be influenced globally, including ecological issues. This study uses the ECM method to compare factors against CO₂ emissions as a proxy for environmental degradation in Indonesia and Germany from 1990–2019. The results indicate that in the short term, only variable coal consumption and renewable energy significantly influence CO₂ emissions in both countries.

Meanwhile, the variables of economic growth and FDI has an insignificant effect. In the long run, the variables of economic growth and FDI have a significant impact on CO₂ emissions in Indonesia and Germany. Coal consumption significantly has a negative effect in Indonesia and a positive effect in Germany on CO₂ emissions. Renewable energy consumption in Indonesia and Germany has a negative and significant impact. There are similarities between Indonesia and Germany. The variables of economic growth and FDI in the long term have a significant effect on CO₂ emissions. Meanwhile, coal consumption and renewable energy in the short and long time significantly affect CO₂ emissions. The recommendations are that the government should firmly support reducing coal consumption because it impacts environmental degradation, and the government should support the use of renewable energy to be more massive by issuing legislation.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Mita Iskhomiya
AU  - Nur Andriyani
PY  - 2023
DA  - 2023/10/04
TI  - Environmental Degradation by Economic Activity: An Empirical Comparison Study in Indonesia and Germany
BT  - Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2)
PB  - Atlantis Press
SP  - 492
EP  - 503
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-204-0_42
DO  - 10.2991/978-94-6463-204-0_42
ID  - Iskhomiya2023
ER  -