The Relationship between Gross Domestic Product, Energy Consumption, and Carbon Gas Emissions in the Implementation of a Sustainable Economy in Indonesia

Abstract

Current economic activities cannot be avoided from the use of natural resources, especially natural resources that produce energy. The use or consumption of energy is a means to drive the industrialization of the economy as well as a means of accumulating development capital either complementary or substitute in producing outputs in the economy. The purpose of this research is to see the relationship and influence between the linkages of economic growth, energy consumption, carbon gas emissions in the implementation of a sustainable economy in Indonesia with a time frame of 1990 - 2020. The type of research used is descriptive quantitative, which is a descriptive approach with a quantitative approach. The data used is secondary data, this research is time series data research using the Vector Error Correction Model (VECM) analysis method assisted by the Eviews 12.0 analysis tool. The results found that energy consumption and carbon gas emissions have a negative effect on short-term relationships but have a positive effect and a long term relationship on Gross Domestic Product in Indonesia.