The Impact Of Implementing Blue Energy On Economic Growth In Indonesia

Abstract

This study investigates the application of renewable energy which is one of the sectors in the blue economy to CO2 emissions and economic growth in Indonesia. This research examines data from 2000 to 2020 in order to produce "autoregressive vectors" that may be used to assess the causal link between variables. Based on secondary data from the World Bank, the following multivariate regression model was used to investigate the application of renewable energy which is one of the sectors in the blue economy to CO2 emissions and economic growth in Indonesia. We found that renewable energy from the blue economy concept in Indonesia significantly boosts CO2 emissions and economic growth. The increase in the use of renewable energy in Indonesia is still unable to reduce the impact of energy use, namely the increase in CO2 emissions in Indonesian air. The increase in CO2 emissions in the air is also in line with the increase in economic growth so the blue economy concept is still dealing with the preservation of nature. The concept of a blue economy and renewable energy by optimizing marine resources overcomes the problem of scarcity of fossil resources but still needs to develop environmental sustainability issues.