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All Journal Economic and Finance in Indonesia
Nisa, Cintya Khairun
Unknown Affiliation
Economics, Econometrics & Finance Education

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Economic Growth and CO2 Emission in ASEAN: Panel-ARDL Approach Feriansyah, Feriansyah; Nugroho, Hari; Larre, Aura Asyda; Septiavin, Qori’atul; Nisa, Cintya Khairun
Economics and Finance in Indonesia Vol. 68, No. 2
Publisher : UI Scholars Hub

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Abstract

This paper investigates the relationship between economic growth and CO2 emissions from 1994 to 2018 using a panel approach from eight ASEAN countries. We found an established result using the Panel ARDL Pooled Mean Group method. First, the panel Cointegration analysis shows a significant long-term relationship between GDP and CO2 emissions. Second, the error correction mechanism shows a stable and consistent value. Third, we found that GDP has a significant long-term effect on CO2 emissions in ASEAN countries. Fourth, our results also show that GDP significantly impacts CO2 emissions in the short term for four countries: Indonesia, Malaysia, Thailand, and Cambodia. Based on these empirical results, implications and policy recommendations are presented. ASEAN countries should implement green growth policies by encouraging economic development which does not suppress the environment.
Co-Authors Feriansyah, Feriansyah Hari Nugroho Larre, Aura Asyda Septiavin, Qori’atul