Perpustakaan Digital ITB

This study examines the socio-economic and environmental factors influence on carbon dioxide emissions for six ASEAN countries; namely, Singapore, Malaysia, Indonesia, Thailand, the Philippines, and Vietnam on the sustainable economic development purpose. A set of panel data from 2000 to 2020 is estimated using panel cointegration and Cross-Sectionally Augmented Distributed Lag model to determine the effect of economic growth, electricity consumption, urbanisation, institutional quality, natural resources rents, and forest cover area on CO2 emissions from six countries for short and long run coefficient estimations. The Im, Pesaran and Shin (IPS) unit root test and slope heterogeneity test are employed to address heterogeneity and cross-sectional dependence issues. Then, the diagnostic tests are performed to detect some data errors such as multicollinearity, heteroskedasticity and endogeneity. The finding reveals that only square of GDP per capita and electricity consumption impact the CO2 emissions significantly, while natural resources rent exhibits significant impact in curbing CO2 emissions. In contrary to the conventional outcome of the EKC hypothesis, the positive coefficient of square of GDP indicates that a U-shaped curve rather than an inverted U-shaped curve does not apply to ASEAN. The corruption index aggravates CO2 emissions in the Common Correlated Effect Mean Group estimator. This study enables the governments of the six ASEAN countries to formulate relevant policies aimed at achieving better sustainable socioeconomic goals and promoting green economic development via pertinent energy policies and green funding.