Analysis of The Effect on Economic Growth, Foreign Investment, Population and Energy Consumption on Co2 in Asean Economies
DOI:
https://doi.org/10.54408/jabter.v4i3.363Keywords:
Economic Growth, Foreign Investment, CO2 Emissions, Fixed Effects, VECMAbstract
ASEAN member states have proactively taken steps to address climate change issues at the national, regional and global levels. However, the rapid growth of the global economy and human activities on climate is increasing and has become a cause of environmental damage. This study aims to examine the effect of economic growth (GDP), foreign investment (FDI), population and energy consumption on CO2 emissions and examine the determinants of dynamic interaction of long- and short-term relationships using fixed effects panel data models and vector error correction models (VECM) for five ASEAN countries namely Indonesia, Malaysia, Philippines, Thailand and Vietnam using panel data with a time span of 1997 to 2020. The results of the fixed effects panel model test confirmed that economic growth, foreign investment and energy consumption affect CO2 emissions while population has no effect on CO2 emissions. In simultaneous testing, economic growth, foreign investment, population and energy consumption variables jointly affect CO2 in ASEAN countries. In addition, the VECM test results confirm that economic growth, foreign investment and energy consumption affect the CO2 of ASEAN countries in the long run, while population has no effect on CO2 of ASEAN countries in the long run. Other findings confirmed the existence of homogeneous causality relationship of GDP and FDI to CO2 and vice versa CO2 has homogeneous causality relationship to GDP and FDI. Population and Consumption have heterogeneous causality relationship to CO2. These variables are different in different situations and in different countries. The above results are expected that stakeholders can formulate appropriate policies.
Downloads
References
Abbasi, M. A., Parveen, S., Khan, S., & Kamal, M. A. (2020). Urbanization and energy consumption effects on carbon dioxide emissions: evidence from Asian-8 countries using panel data analysis. Environmental Science and Pollution Research, 27(15), 18029–18043. https://doi.org/10.1007/s11356-020-08262-w
Agung PS, Prima; Hartono, Djoni; Alam Awirya, A. (2017). No Title. Jurnal Ekonomi Terapan, 10(02), 9–17.
ASEAN Secretariat. (2021a). ASEAN State of Climate Change Report. 1–167.
ASEAN Secretariat. (2021b). ASEAN State of Climate Change Report. 1–167.
Ayundari, A. A. A. P., & Setiawan, S. (2023). Analisis Determinasi Inflasi Provinsi Bali dengan Pendekatan Vector Error Correction Model (VECM). Jurnal Sains Dan Seni ITS, 12(2), 1–8. https://doi.org/10.12962/j23373520.v12i2.112716
Bakhsh, K., Rose, S., Ali, M. F., Ahmad, N., & Shahbaz, M. (2017). Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS. Journal of Environmental Management, 196, 627–632. https://doi.org/10.1016/j.jenvman.2017.03.029
Febriyastuti Widyawati, R., Hariani, E., Lopa Ginting, A., & Nainggolan, E. (2021). Volume 3 Issue 1 July 2021 Pengaruh Pertumbuhan Ekonomi, Populasi Penduduk Kota, Keterbukaan Perdagangan Internasional Terhadap Emisi Karbon Dioksida (Co 2 ) Di Negara Asean. Jambura, 3(1 july 2021), 37–47.
Handy Wijaya, S. (2017). ANALISIS PENGARUH PDB, KONSUMSI BATUBARA, PMA, PERKOTAAN DAN KONSUMSI ENERGI TERHADAP CO2 DI NEGARA- NEGARA ASEAN 2000-2011. Jurnal Ilmiah Mahasiswa Universitas Surabaya, 6(1), 1830–1842.
Hanif, I., Faraz Raza, S. M., Gago-de-Santos, P., & Abbas, Q. (2019). Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: Some empirical evidence. Energy, 171, 493–501. https://doi.org/10.1016/j.energy.2019.01.011
He, F., Chang, K. C., Li, M., Li, X., & Li, F. (2020). Bootstrap ARDL test on the relationship among trade, FDI, and CO2 emissions: Based on the experience of BRICS countries. Sustainability (Switzerland), 12(3). https://doi.org/10.3390/su12031060
Iqbal, A., Tang, X., & Rasool, S. F. (2023). Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries. Environment, Development and Sustainability, 25(3), 2234–2263. https://doi.org/10.1007/s10668-022-02128-6
Lateef, R., Kong, Y., Javeed, S. A., & Sattar, U. (2021). Carbon emissions in the saarc countries with causal effects of fdi, economic growth and other economic factors: Evidence from dynamic simultaneous equation models. International Journal of Environmental Research and Public Health, 18(9). https://doi.org/10.3390/ijerph18094605
Mai, T. N. (2023). Renewable Energy, GDP (Gross Domestic Product), FDI (Foreign Direct Investment) and CO2 Emissions in Southeast Asia Countries. International Journal of Energy Economics and Policy, 13(2), 284–289. https://doi.org/10.32479/ijeep.14022
MIT. (2017a). Pathways to Paris : Association of Southeast Asian Nations ( ASEAN ) Pathways to Paris : Association of Southeast Asian Nations ( ASEAN ). 5–150.
MIT. (2017b). Pathways to Paris : Association of Southeast Asian Nations ( ASEAN ) Pathways to Paris : Association of Southeast Asian Nations ( ASEAN ). 5–150.
Mohanty, S., & Sethi, N. (2022). The energy consumption-environmental quality nexus in BRICS countries: the role of outward foreign direct investment. Environmental Science and Pollution Research, 29(13), 19714–19730. https://doi.org/10.1007/s11356-021-17180-4
Mohsin, M., Naseem, S., Sarfraz, M., & Azam, T. (2022). Assessing the effects of fuel energy consumption, foreign direct investment and GDP on CO2 emission: New data science evidence from Europe & Central Asia. Fuel, 314(November 2021), 123098. https://doi.org/10.1016/j.fuel.2021.123098
Muhammad Waqas Ashraf, Hafeez ur Rehman, & Imran Sharif Chaudhry. (2020). The Impact of Economic Growth, Foreign Direct Investment, Urbanization, Fossils Fuel Consumption on Environmental Degradation in Emerging Asian Economies. Journal of Business and Social Review in Emerging Economies, 6(4), 1479–1495. https://doi.org/10.26710/jbsee.v6i4.1480
Nie, Y., Liu, Q., Liu, R., Ren, D., Zhong, Y., & Yu, F. (2022). The Threshold Effect of FDI on CO2 Emission in Belt and Road Countries. International Journal of Environmental Research and Public Health, 19(6). https://doi.org/10.3390/ijerph19063523
Nur Mozahid, M., Akter, S., & Hafiz Iqbal, M. (2022). Causality analysis of CO2 emissions, foreign direct investment, gross domestic product, and energy consumption: empirical evidence from South Asian Association for Regional Cooperation (SAARC) countries. Environmental Science and Pollution Research, 29(43), 65684–65698. https://doi.org/10.1007/s11356-022-20362-3
Plakitkina, L. S., Plakitkin, Y. A., & Dyachenko, K. I. (2021). Hydrogen versus coal: Implications of the hydrogen energy engineering advance for the coal industry. Gornyi Zhurnal, 2021(7), 14–21. https://doi.org/10.17580/gzh.2021.07.02
PS, P. A., Hartono, D., & Awirya, A. A. (2017). Pengaruh Urbanisasi terhadap Konsumsi energi dan emisi Co2 : Analisis Provinsi di Indonesia. Jurnal Ekonomi Kuantitatif Terapan, 10(02), 9–17.
Rafique, M. Z., Li, Y., Larik, A. R., & Monaheng, M. P. (2020). The effects of FDI, technological innovation, and financial development on CO2 emissions: evidence from the BRICS countries. Environmental Science and Pollution Research, 27(19), 23899–23913. https://doi.org/10.1007/s11356-020-08715-2
Rauf, A., Ali, N., Sadiq, M. N., Abid, S., Kayani, S. A., & Hussain, A. (2023). Foreign Direct Investment, Technological Innovations, Energy Use, Economic Growth, and Environmental Sustainability Nexus: New Perspectives in BRICS Economies. Sustainability (Switzerland), 15(18). https://doi.org/10.3390/su151814013
Savitri et al., 2021: 97-98. (2021). STATISTIK MULTIVARIAT DALAM RISET Tim. In Penerbit Widina Bhakti Persada Bandung All.
Shaari, M. S., Abidin, N. Z., Ridzuan, A. R., & Meo, M. S. (2021). The impacts of rural population growth, energy use and economic growth on co2 emissions. International Journal of Energy Economics and Policy, 11(5), 553–561. https://doi.org/10.32479/ijeep.11566
Shaari, M. S., Lee, W. C., Ridzuan, A. R., Lau, E., & Masnan, F. (2022). The Impacts of Energy Consumption by Sector and Foreign Direct Investment on CO2 Emissions in Malaysia. Sustainability (Switzerland), 14(23), 1–15. https://doi.org/10.3390/su142316028
Wang, Y., Li, X., Kang, Y., Chen, W., Zhao, M., & Li, W. (2019). Analyzing the impact of urbanization quality on CO2 emissions: What can geographically weighted regression tell us? Renewable and Sustainable Energy Reviews, 104(July 2018), 127–136. https://doi.org/10.1016/j.rser.2019.01.028
Zhao, X., & Xi, Y. (2022). Threshold Effects of Urban Population Size and Industrial Structure on CO2 Emissions in China. Frontiers in Environmental Science, 10(April), 1–10. https://doi.org/10.3389/fenvs.2022.894442.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Zuraida Hafsa Al-Azizi , Farida Rahmawati, Lisa Rokhmani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This journal is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
