Description
Title: Urbanization and Economic Activity’s Impact on CO2 Emissions in Indonesia: Towards Net Zero Carbon
Abstract: This study aims to examine the relationship between CO2 emissions, urbanization, and economic activity and determine whether Indonesia is a pollution haven. It made use of Indonesian time series data from 1971 to 2019. Additionally, the cointegration and Granger causality approaches were used to analyze the long-run and short-run interactions using the vector error correction model (VECM). The empirical findings confirmed that Indonesia fit the pollution haven hypothesis. The model revealed a long-term relationship with CO2 emissions. Additionally, there was a short-term unidirectional causal relationship between urbanization, economic expansion, exports, and foreign direct investment and CO2 emissions. It was determined that when the committed countries are brave in transforming their economies, the Paris Agreement will be successfully implemented. Major changes, however, are required, and everyone involved must share the same goal of achieving net zero carbon emissions.
Keywords: CO2 emissions; economic activities; urbanization; net zero carbon
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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