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The Effect of Renewable Energy Consumption, Economic Growth, and Energy Use on CO₂ Emissions in Indonesia: An ARDL Analysis Mustofa, Raihan Ahmad; Kamila, Mariam; Nurrachmi, Rininta; Shafnastiara, Syifa
Jurnal Kebijakan Ekonomi
Publisher : UI Scholars Hub

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Abstract

Abstract This study examines the dynamic relationship between renewable energy consumption, total energy use, economic growth, and CO₂ emissions in Indonesia over the period 1990–2021 using an ARDL approach. The results show a stable long-run relationship with quick adjustment after shocks. In the long run, energy consumption is associated with higher CO₂ emissions, reflecting the continued dominance of fossil fuels. Renewable energy helps reduce emissions in the short term, but its long-term impact remains statistically insignificant. GDP does not show a significant effect, suggesting that meaningful decarbonization will require a more intensive shift in the energy mix. Keywords: ARDL, renewable energy, economic growth, energy use