THE ANALYSIS OF THE NEXUS AMONG INCOME GROWTH, ELECTRICITY PRODUCTION AND CONSUMPTION AND CO2 EMISSIONS IN INDONESIA

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Muchran

Abstract

This paper is aimed at examining the association between income growth, population growth, electricity production and consumption, and CO2 emissions using annual data for the period 1970 to 2018 in Indonesia. The Pearson-correlation and regression analysis have been employed to determine the pattern and link among variables. The results indicate a rising trend in population, income, electricity generation and consumption, and CO2 emissions. The correlation coefficients indicate a linear association among the population, GDP, electricity generation and consumption, and CO2 emissions. The rising trend in GDP and population has a significant impact on the higher rate of electricity consumption that brings to higher CO2 emissions. The study concludes that electricity in Indonesia is a human-dependent energy system. Therefore, sustainable energy that generates minimum emissions is the need of time.

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