Decomposition analysis of decoupling of manufacturing co2 emissions in indonesia

This study aims to identify ways to effectively reduce CO ₂ emissions from Indonesia’s manufac-turing industry sector. We use the log mean decomposition index method to decompose CO ₂ emis-sions from this sector in the period 2010–2014. Then, we apply a decoupling index method to analyze the correlation between CO ₂ emissions and manufacturing industry growth. The findings indicate that growth in the manufacturing industry was the main driver of increasing CO ₂ emis-sions, whereas reduction in energy intensity and energy consumption structure played an important role in limiting these emissions. Relative decoupling was observed in 2012–2013, implying that the manufacturing industry grew while decreasing CO ₂ emissions during that limited period. How-ever, no decoupling was identified in the other years of the study period. The novelty of this study relative to others in the literature stems from the combination of these methods. Although many studies have focused on energy consumption and CO ₂ emissions, no extant study is devoted to decomposing CO ₂ emissions and decoupling them from manufacturing industry growth in Indone-sia.