Effect of Foreign Direct Investment and Economic Growth on CO2 Emmision in Indonesia

Abstract

Economic growth and capital movements have risen in the world, this has led to several debates about environmental degradation caused. Carbon dioxide emissions are a form of environmental degradation caused by economic activities. The analytical method used is descriptive analysis method and quantitative analysis method. Descriptive analysis method aims to describe the dynamics that occur in each variable studied. Quantitative analysis in the form of Dynamic Ordinary Least Squares (DOLS) aims to determine the effect of FDI, economic growth, and energy consumption on carbon dioxide emissions. This study uses secondary data from 1981 to 2014. The results obtained are FDI, economic growth, and energy consumption affecting carbon dioxide emissions in Indonesia. The role of the economic sector in regulation of carbon dioxide emissions tends to be significant