Indonesian Journal of Business and Entrepreneurship (IJBE)
Vol. 8 No. 2 (2022): IJBE, Vol. 8 No. 2, May 2022

Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition

Eka Sudarmaji (University of Pancasila, Indonesia)
Noer Azam Achsani (School of Business, IPB University, Indonesia)
Yandra Arkeman (Department of Agroindustrial Technology, Faculty of Agricultural Engineering and Technology, IPB University. Jl Dramaga, IPB Darmaga Campus, Bogor 16680, Indonesia)
Idqan Fahmi (School of Business, IPB University, Indonesia)



Article Info

Publish Date
31 May 2022

Abstract

All ASEAN countries have achieved extraordinarily high growth rates in their history of economic development. They relied on new energy efficiency technologies to reduce their energy intensity while avoiding the rebound effect. Academics debate told that the rebound effect happened due to the false policies. Hence, the other strategy to stimulate increased energy efficiency in the economic sector is essential for government policy in overcoming resource constraints. This study used the logarithmic-mean Divisia index (LMDI) decomposition and KAYA identity to recognize the determinant factors of carbon emissions and rebound effect changes in ASEAN countries. This study also analyzed the factors behind the shift in ASEAN's carbon emissions and identified the differences between ASEAN member countries. The carbon emissions are decomposed into the population, GDP growth, energy intensity, and carbon intensity. One of the purposes of this paper advocated enhancing efficiency, notably in the energy efficiency sector's plan to encourage government measures. According to the research findings, substantial energy rebounds in Indonesia have revealed that energy efficiency gains in Indonesia may be related to the rebound effect. Indonesia sought to go in this direction, with the national energy policy aiming to lower energy efficiency by 1% each year to stimulate energy savings in all sectors. Keywords: ASEAN, energy efficiency, kaya index, LMDI, rebound effect

Copyrights © 2022






Journal Info

Abbrev

ijbe

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Indonesian Journal of Business and Entrepreneurship (IJBE) publishes information of empirical research and reviews in business and entrepreneurship. IJBE is published by School of Business, Bogor Agricultural University (SB-IPB) associated with Indonesian Alliance of Magister Management Program ...