Environmental Impact of Biomass Energy Consumption on Sustainable Development: Evidence from ARDL Bound Testing Approach

Obsatar Sinaga, Mohd Haizam Mohd Saudi, Djoko Roespinoedji, Noor Hafidzah Jabarullah

Ekoloji, 2019, Issue 107, Pages: 443-452, Article No: e107020


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This present study examines the environmental impact of biomass energy consumption as a bioenergy resource in predicting economic growth in Indonesia in the presence of Cobb-Douglas production function. Biomass is considered a sustainable, potentially environmentally sound and a replenishable resource .The present study takes annual time series data over the time period of 1980 to 2017. The study used biomass energy consumption to examine the long run relationship between environment, economic development, capital, labor, exports of goods and services and biomass energy consumption in Indonesia. The author applied the advance econometrics to serve the purpose of environmental investigation and therefore used the ARDL bound testing cointegration for assessing the presence of long-run relationship between the variables. Utilizing the framework of production function, the results of ARDL method confirm the valid long run relationship between biomass energy consumption and economic development in Indonesia. The environmental analysis indicates that biomass energy consumption has positive and significant impact on economic growth in long and short run. Therefore, the findings of the study recommended that biomass energy consumption does not only benefit for the economic development but also helps to improve environmental development in Indonesia.


biomass energy consumption, environmental impact, sustainable development, economic growth, Cobb-Douglas


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