The environmental Kuznets curve in Indonesia: Exploring the potential of renewable energy

Yogi Sugiawan, Shunsuke Managi

Research output: Contribution to journalArticle

58 Citations (Scopus)

Abstract

There is an increasing interest in investigating the environmental Kuznets curve (EKC) hypothesis because it suggests the existence of a turning point in the economy that will lead to a sustainable development path. Although many studies have focused on the EKC, only a few empirical studies have focused on analyzing the EKC with specific reference to Indonesia, and none of them have examined the potential of renewable energy sources within the EKC framework. This study attempts to estimate the EKC in the case of Indonesia for the period of 1971–2010 by considering the role of renewable energy in electricity production, using the autoregressive distributed lag (ARDL) approach to cointegration as the estimation method. We found an inverted U-shaped EKC relationship between economic growth and CO2 emissions in the long run. The estimated turning point was found to be 7729 USD per capita, which lies outside of our sample period. The beneficial impacts of renewable energy on CO2 emission reduction are observable both in the short run and in the long run. Our work has important implications both for policymakers and for the future development of renewable energy in Indonesia.

Original languageEnglish
Pages (from-to)187-198
Number of pages12
JournalEnergy Policy
Volume98
DOIs
Publication statusPublished - Nov 1 2016

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Kuznets curve
energy
Sustainable development
Electricity
Economics
estimation method
economic growth
electricity
sustainable development

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law

Cite this

The environmental Kuznets curve in Indonesia : Exploring the potential of renewable energy. / Sugiawan, Yogi; Managi, Shunsuke.

In: Energy Policy, Vol. 98, 01.11.2016, p. 187-198.

Research output: Contribution to journalArticle

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