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August 13, 20250 citations

Analysis of the Influence of Economic Growth, Industry and Forest Area on Co2 Emission in Indonesia 1993-2022

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WHWildan Faiz HasbullohMSMuhammad Fauzaan SatriantoGRGeffinsya Ardatha Wahyu Risqilla

Key Points

  • Forest area significantly impacts CO2 emissions, highlighting its role in environmental health.
  • Economic growth was found to have no significant effect on CO2 emissions, indicating the need for a focus on forestry.
  • Multiple linear regression was employed to analyze data spanning 29 years, revealing critical insights about emissions.
  • These findings advocate for policies promoting forest conservation and investment in renewable energy for sustainable progress.

Abstract

Developments in industrial development for economic growth often have an impact on environmental sustainability. This has a very negative impact on environmental sustainability in the long term. Indonesia, as the country with the third largest tropical forest area, is facing threats of deforestation, increased greenhouse gas emissions, and environmental degradation. This study aims to analyse the influence of economic growth, industry, and forest area on CO2 emissions in Indonesia using a descriptive approach and multiple linear regression with data from 1993 to 2022. The variables used in this study are economic growth, industry, forest area, and CO2 emissions. The theory used is the Environmental Kuznets Curve (EKC) theory. The results of the study indicate that economic growth does not have a significant impact on CO2 emissions. However, forest area has a significant impact on CO2 emissions. Furthermore, the industrial sector has been proven to have a significant impact on CO2 emissions. Therefore, policymakers must prioritise industrial awareness in sustainable development and the planting of CO2-absorbing trees. Global incentives for forest conservation in developing countries, as well as effective implementation of REDD+. Policies to reduce emissions through investment in forestry. Maximise the forestry sector through reforestation and sustainable management. Finally, encourage long-term investment in clean and renewable energy in industry.

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Cite This Study

Hasbulloh et al. (2025) studied this question.

synapsesocial.com/papers/68af61fdad7bf08b1eae27a6https://doi.org/10.32424/icsema.1.1.196
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