How agriculture, manufacture, and urbanization induced carbon emission? The case of Indonesia
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RESEARCH ARTICLE
How agriculture, manufacture, and urbanization induced carbon emission? The case of Indonesia Slamet Eko Prastiyo 1,2 & Irham 2
&
Suhatmini Hardyastuti 2 & Jamhari 2
Received: 20 March 2020 / Accepted: 15 July 2020 # The Author(s) 2020
Abstract The agriculture and manufacturing sectors are the backbones of the Indonesian economy; for this reason, research on the effects of these sectors on carbon emissions is an important subject. This work adds urbanization to enrich research on the Environmental Kuznets Curve (EKC) in Indonesia. The results of this study indicate that the EKC hypothesis was confirmed in Indonesia with a turning point of 2057.89 USD/capita. The research results show that all variables affect the escalation of greenhouse gas emissions in Indonesia. Furthermore, there is a bidirectional causality relationship between emissions with economic growth, emissions with agricultural sector, emissions with manufacturing sector, economic growth with agricultural sector, and economic growth with manufacturing. The unidirectional causality is found in emissions by urbanization and economic growth by urbanization. To reduce the impact of environmental damage caused by the activities of agriculture, manufacturing, and urbanization sectors, it is recommended that the government conduct water-efficient rice cultivation and increase the use of renewable energy. Keywords Agriculture . Causality . Environmental Kuznets Curve (EKC) . emission . Manufacture . Urbanization
Introduction Economic growth and human activities have caused an increased concentration of greenhouse gas (GHG) emissions in the atmosphere. Carbon dioxide concentrations have increased by 40% since pre-industrial times, mainly from fossil fuel emissions and also from land use including the agricultural sector (IPCC 2013). One of the main GHG emitters in the world is the agriculture sector, which accounts for at least 20% of total emissions worldwide, of which more than 44% of agricultural sector emissions are generated in the Asian continent (FAO 2016a, b). Meanwhile, the industry contributes directly and indirectly to about 37% of the global greenhouse gas emissions. Total energy–related industrial emissions have
Responsible Editor: Philippe Garrigues * Irham [email protected] 1
Central Java Provincial Government: Agriculture and Plantation Services, Kompleks Tarubudaya, Ungaran, Jawa Tengah, Indonesia
2
Faculty of Agriculture, Universitas Gadjah Mada, JL. Flora, Bulaksumur, Yogyakarta 55281, Indonesia
grown by 65% since 1971 (Worrell et al. 2009). Economic growth in the industrial sector, especially manufacturing and construction, not only results in increasing the welfare of the community but also triggers environmental damage, including through GHG emissions. In the manufacturing sector, GHG emissions are generated through the use of chemicals and fuels in industrial processes (Tan et al. 2011; Peng et al. 2012; Mi et al. 2015; Asghar et al. 2019; Zaekhan et al. 2019). The growth of the industry also causes an increase
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