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.
Cite this article
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 -