KOMPLEKSITAS EKONOMI PERDAGANGAN SEBAGAI UPAYA MENURUNKAN EMISI NITROGEN DIOKSIDA: EKC NEGARA G20
Abstract
Abstract
The quality of economic growth not only increases the size of a country's economy. It also increases the capabilities of human resources and the development of a variety of technologies used in the production process, which can be explained by the Economic Complexity Index (ECI). Many countries accelerate their economic growth through the optimization of the industrial sector, but this sector is still dominated by non-renewable energy such as petroleum and coal, causing an increase in emissions including nitrogen dioxide (N2O) emissions contributed through the combustion of fossil fuels and solid waste. The analysis method Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) panels on 18 G20 member countries from 1995-2020, and uses the concept of the Environmental Kuznets Curve (EKC) approach to see the long-term effect of ECI on N2O emissions. The results show that ECI and renewable energy variables have a significant effect in reducing emissions, while Foreign Direct Investment (FDI) is not significant. The policy implication that country can encourage the increase of complex export products using eco-friendly and renewable materials.
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References
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