EKO-REGIONAL JURNAL PENGEMBANGAN EKONOMI WILAYAH
Vol 17, No 2 (2022)

Does Trade Openess and Transportation Intensity Promote Enviromental Degradation in Indonesia?

Mochammad Yusuf (Universitas Negeri Semarang)
Difa Riza Fahlefi (Universitas Wahid Hasyim)



Article Info

Publish Date
30 Sep 2022

Abstract

Transportation is one of the most important sectors in supporting all economic activities in order to support inclusive economic development. However, in its development, trade openness triggers high economic activity that triggers environmental pollution, one of which is the impact of the transportation sector. This study aims to estimate the effect of trade openness and transportation intensity as well as total factor productivity as a proxy for technological development on the growth of carbon emissions in Indonesia. The methods used in this research are Engle-Granger ECM and Granger Causality. The results show that in the long-term trade openness and transportation intensity have a significant positive effect, while the total productivity factor has a significant negative effect. In the short term with the same direction of influence, total productivity factors and transportation intensity have a significant effect, but trade openness does not have a significant effect. Furthermore, there is a unidirectional effect of fossil energy consumption on transportation intensity & trade oponess on transportation intensity. Last, transportation intensity and trade openness have been shown to have a bidirectional relationship.

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Journal Info

Abbrev

eko-regional

Publisher

Subject

Economics, Econometrics & Finance

Description

EKO-REGIONAL Jurnal Pembangunan Ekonomi Wilayah (Journal of Regional Economic Development) is a scientific journal containing research results on regional economics, tourism economics, geographical economics, natural resource economics, SMEs development, and local economic development. The journal ...