TY - JOUR
T1 - What drivers the decoupling of CO2 emissions in the Indonesian manufacturing industry? An analysis of firm level factors
AU - Zaekhan,
AU - Djalal Nachrowi, Nachrowi
AU - Hartono, Djoni
AU - Rosita, Tita
N1 - Funding Information:
This work was supported by Universitas Indonesia [grant number NKB-0817/UN2.R3.1/HKP.05.00/2019]. The authors would like to sincerely thank the editor and the anonymous reviewers for their valuable comments in improving this manuscript. We gratefully acknowledge the financial support provided by the Directorate of Research and Community Engagement, Universitas Indonesia, under a PITMA-A grant.
Funding Information:
The authors would like to sincerely thank the editor and the anonymous reviewers for their valuable comments in improving this manuscript. We gratefully acknowledge the financial support provided by the Directorate of Research and Community Engagement, Universitas Indonesia, under a PITMA-A grant.
Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022
Y1 - 2022
N2 - This study identifies determinants (firm characteristics) that drive the decoupling of CO2 emissions in the Indonesian manufacturing industry. The estimation method applied was Seemingly Unrelated Regression (SUR). The data were sourced from Indonesia’s large and medium industry statistics survey for 2010–2015, prepared by Statistics Indonesia. The estimation results show that a reduction in tax/price of gas fuel or will encourage decoupling. Medium-tech firms are more polluting, while foreign investors-owned firms and firms in the Java-Bali region are less polluting, and could encourage decoupling. The Indonesian government should implement technology transfer by following the energy conversion pattern from petroleum fuels to gas fuels, increase capitalisation to firms that tend to be heavy polluters, small firms, and firms owned by domestic investors and outside Java-Bali. Novelty this study is linking firm characteristics as a decoupling driving factor of CO2 emissions in the manufacturing industry.
AB - This study identifies determinants (firm characteristics) that drive the decoupling of CO2 emissions in the Indonesian manufacturing industry. The estimation method applied was Seemingly Unrelated Regression (SUR). The data were sourced from Indonesia’s large and medium industry statistics survey for 2010–2015, prepared by Statistics Indonesia. The estimation results show that a reduction in tax/price of gas fuel or will encourage decoupling. Medium-tech firms are more polluting, while foreign investors-owned firms and firms in the Java-Bali region are less polluting, and could encourage decoupling. The Indonesian government should implement technology transfer by following the energy conversion pattern from petroleum fuels to gas fuels, increase capitalisation to firms that tend to be heavy polluters, small firms, and firms owned by domestic investors and outside Java-Bali. Novelty this study is linking firm characteristics as a decoupling driving factor of CO2 emissions in the manufacturing industry.
KW - CO emissions
KW - decoupling
KW - Firm characteristics
KW - manufacturing
KW - Seemingly Unrelated Regression (SUR)
UR - http://www.scopus.com/inward/record.url?scp=85123590998&partnerID=8YFLogxK
U2 - 10.1080/14786451.2021.1945602
DO - 10.1080/14786451.2021.1945602
M3 - Article
AN - SCOPUS:85123590998
SN - 1478-6451
VL - 41
SP - 538
EP - 555
JO - International Journal of Sustainable Energy
JF - International Journal of Sustainable Energy
IS - 6
ER -
