Causal study of macroeconomic indicators on carbon d ioxide emission in ASEAN 5

Abstract

Carbon dioxide Emission is one of the environment degradation resulted from economic ac- tivities. The study aims at revealing the relation of macroeconomic indicators with carbon dioxide emission in ASEAN 5 countries. Carbon dioxide emission is a dependent variable explained by macroeconomic indicator variables such as GDP, trades, energy consumption and exchange rates as an independent variable. The data employed are time series data, the annual data in ASEAN 5 countries (Indonesia, Malaysia, Thailand, the Philippine and Singapore) from the period of 1975 to 2011. The research employs two methods of analysis; narrative

descriptive qualitative and VAR (Vector Auto Regressive) method. The estimated research findings indicate different results concerning macroeconomic indicators affecting the

carbon dioxide emission in ASEAN 5. AR results reveal that GDP in Indonesia has significant

negative effect while the energy consumption shows a significant positive effect. Meanwhile,

the variables such as GDP, trades and exchange rate have a significant positive affect in Malaysia. In Singapore, energy consumption has a significant effect

and the exchange rate has positive significant one. Lastly, the Philippine shows that exchange rate variable indicates a significant effect towards carbon dioxide emission.