Estimation models of the impacts of the economic and population growth to changes in CO2 emissions in indonesia using the Cobb-Douglas production function

Hafizan, Juahir and Mustafa, Mamat and Budiono, R and Nurzaman, M and Sukono, . and Bon, A.T. (2019) Estimation models of the impacts of the economic and population growth to changes in CO2 emissions in indonesia using the Cobb-Douglas production function. In: 1st GCC International Conference on Industrial Engineering and Operations Management, IEOM 2019, 26-28 November 2019, riyadh; Saudi Arabia.

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Abstract

Economic development is done to achieve economic growth of a country. Unplanned economic development has a negative impact on environmental damage. The dynamics of economic growth and population is very potential for global warming caused by the accumulation of CO emissions in the air. This paper intends to investigate the effect of economic and population growth in increasing CO emissions in the air. The goal is to estimate the models that are able to illustrate the relationship between economic growth and the population towards the changes in CO emissions in the air. Model estimation is done by using product function in Cobb-Douglas, meanwhile parameter estimation is done by using ordinary least square method (OLS). The results of the analysis show that the Cobb-Douglas production function can significantly illustrate the relationship of economic and population growth influence to CO emission change. The strength of the relationship can be shown by the coefficient of determination which reached 98.0%. This shows the truth that the increase in CO emissions is significantly influenced by economic growth and population.

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