Sustainability (STPP) Theory, Practice and Policy
Vol. 2 No. 2 (2022): Sustainability: Theory, Practice and Policy October Edition

Renewable Energy and Economic Growth in Indonesia: Evidence from VECM Causality

Nuriah Alfisyahri (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Ilham Abdi Prawira (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Burhanuddin Burhanuddin (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Jalaluddin FA (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Irfan Harmain (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)



Article Info

Publish Date
27 Oct 2023

Abstract

Attention to sustainable development globally has accelerated the focus on renewable energy consumption in recent decades. This study discusses the causality between carbon dioxide emissions, renewable energy consumption-hydropower, renewable energy consumption-geothermal, biomass, and other sources on economic growth. Using the VECM and Granger Causality methods to see the relationship between variables in the long term and short term. This study uses time series data from 1990-2020 in Indonesia. The results of the study are that carbon dioxide emissions and renewable energy consumption-hydropower are significantly positive for economic growth in the long and short term, while renewable energy consumption-geothermal, biomass, and other sources are significantly negative for economic growth. In terms of causality, in the long term, all variables have a one-way causal relationship, while in the short term, carbon dioxide emissions and economic growth and renewable energy consumption-geothermal, biomass, and other and economic growth have an alternating causality relationship.

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Journal Info

Abbrev

SDGs

Publisher

Subject

Agriculture, Biological Sciences & Forestry Computer Science & IT Earth & Planetary Sciences Energy Environmental Science Social Sciences

Description

Sustainability; Theory, Practice and Policy is an international and cross-disciplinary scholarly, open access journal of theory, practice and policy on social, economy and environmental sustainability of society, which provides an advanced forum for studies related to sustainability and sustainable ...