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TESTING THE ENVIRONMENTAL KUZNETS CURVE (EKC) HYPOTHESIS AND THE DETERMINANTS OF CARBON DIOXIDE EMISSIONS IN INDONESIA Ria Febriani; Zulfa Emalia; Nindya Eka Sobita
Journal Informatic, Education and Management (JIEM) Vol 8 No 2 (2026): AUGUST
Publisher : STMIK Indonesia Banda Aceh

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61992/jiem.v8i2.502

Abstract

This study aims to test the applicability of the Environmental Kuznets Curve (EKC) and examine the relationship between Gross Domestic Product (GDP) per capita, fuel subsidies, and per capita primary energy consumption to carbon dioxide (CO₂) emissions in Indonesia in the long and short term. The research uses secondary data in the form of an annual time series for the period 1988–2024 sourced from Our World in Data, the World Bank, and the Ministry of Finance of the Republic of Indonesia. The analysis was carried out using the EKC model and the Error Correction Model (ECM), with stationaryness, cointegration, and t-test and F-test tests. The absence of statistical significance in the GDP coefficient per capita squared shows that the existence of the EKC pattern in Indonesia has not been empirically strengthened. In the long term, GDP per capita and primary energy consumption have a positive and significant effect on CO₂ emissions, while fuel subsidies have a negative but not significant effect. In the short term, changes in GDP per capita and primary energy consumption have a positive and significant effect on changes in CO₂ emissions, meanwhile, changes in fuel subsidies have not shown a statistically significant effect. On the other hand, the negative and significant Error Correction coefficient reflects the existence of a correction process that directs short-term imbalances back to long-term equilibrium conditions.