Keterbukaan Perdagangan dan Emisi CO2: Studi Empiris Tingkat Provinsi di Indonesia

Nanda Puspita; Djoni Hartono

doi:10.14710/jwl.9.3.272-292

DOI: https://doi.org/10.14710/jwl.9.3.272-292

Keterbukaan Perdagangan dan Emisi CO2: Studi Empiris Tingkat Provinsi di Indonesia

*Nanda Puspita - Faculty of Economics and Business, University of Indonesia, Jl. Margonda Raya, Pondok Cina, Beji District, Depok City, Indonesia 16424, Indonesia

Djoni Hartono

- Program Pascasarjana Ilmu Ekonomi, Fakultas Ekonomi dan Bisnis, Universitas Indonesia, Indonesia

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Citation Format:

Abstract

There are pros and cons to the results of previous studies regarding the relationship between trade openness and the environment, prompts a deeper investigation of the mechanisms of trade in influencing the environment. This study aims to examine the relationship between trade openness and the level of per capita CO₂ emissions in Indonesia during the period 2010-2018, through three mechanisms, namely scale effects, technique effects and composition effects, as well as comparing the results of using two types of trade intensity measures, namely trade share and composite trade share. The analysis was conducted at the provincial level and using the random & fixed effects panel estimation method. The results of the study show that trade openness has a positive relationship with the level of per capita CO₂ emissions in Indonesia, with the scale effect being more dominant than the technique effect. Furthermore, the composition effect caused by the high capital-labour ratio in a region is the main contributor to the increase in emissions compared to the composition effect due to trade activities induced by the comparative advantage between regions which have negative elasticity. Moreover, the composite trade share index is able to explain trade openness more comprehensively than the trade share.

Fulltext View|Download

Keywords: CO2; composite trade share; decomposition; trade openness; trade share

Article Metrics:

Article Info

Section: Research Articles

Language : ID

In Vol 9, No 3 (2021): December 2021

Recent articles

Pengelolaan Hulu Sub-DAS Logawa dalam Perda Penataan Ruang Kabupaten Banyumas Analisis Sosial Ekonomi Pembentuk Tipologi Wilayah Peri Urban Kecamatan Sungai Raya, Kabupaten Kubu Raya Improving Forest Fire Mitigation in Indonesia: A Lesson from Canada More recent articles

Al-Mulali, U., Ozturk, I., & Lean, H. H. (2015). The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe. Natural Hazards 79, 621–644. doi: 10.1007/s11069-015-1865-9
Albert, S., Bronen, R., Tooler, N., Leon, J., Yee, D., Ash, J., Boseto, D., & Grinham, A. (2018). Heading for the hills: climate-driven community relocations in the Solomon Islands and Alaska provide insight for a 1.5 °C future. Regional Environmental Change, 18, 2261–2272. doi: 10.1007/s10113-017-1256-8
Antweiler, W., Copeland, B. R., & Taylor, M. S. (2001). Is free trade good for the environment? American Economic Review, 91(4), 877-908. doi: 10.1257/aer.91.4.877
Atteridge, A., Shrivastava, M. K., Pahuja, N., & Upadhyay, H. (2012). Climate policy in India: What shapes international, national and state policy? AMBIO, 41(1), 68–77. doi: 10.1007/s13280-011-0242-5
BAPPENAS. (2011). Guideline for implementing greenhouse gas emission reduction action plan (english version). Ministry of National Development Planning Republic of Indonesia, 165. Retrieved from: http://ranradgrk.bappenas.go.id/rangrk/admincms/downloads/publications/Gudeline_for_implementing_green_house_gas_emission_reduction_action_plan.pdf
BAPPENAS. (2014). Progress of adressing climate change in Indonesia 2010-2014. September, 50. http://ranradgrk.bappenas.go.id/rangrk/images/documents/Progress_of_Addressing_Climate_Change_in_Indonesia_2010-2014.pdf
Chen, W., Qu, S., & Han, M. S. (2021). Environmental implications of changes in China’s inter-provincial trade structure. Resources, Conservation and Recycling, 167. doi: 10.1016/j.resconrec.2021.105419
Cole, M. A., & Elliott, R. J. R. (2003). Determining the trade-environment composition effect: The role of capital, labor and environmental regulations. Journal of Environmental Economics and Management, 46(3), 363-383. doi: 10.1016/S0095-0696(03)00021-4
Copeland, B. R. (2013). Trade and the environment. In Palgrave handbook of international trade (pp. 423–496). Palgrave Macmillan, London
Dogan, E., Seker, F., & Bulbul, S. (2017). Investigating the impacts of energy consumption, real GDP, tourism and trade on CO2 emissions by accounting for cross-sectional dependence: A panel study of OECD countries. Current Issues in Tourism, 20 (16), 1701-1719. doi: 10.1080/13683500.2015.1119103
Duodu, A. (2018). Is trade bad for the environment? Decomposing the impact of trade on environmental quality. Lund University
Grossman, G., & Krueger, A. (1991). Environmental impacts of a North American free trade agreement. NBER Working Papers 3914, National Bureau of Economic Research, Inc. doi: 10.3386/w3914
Guo, J., Zhang, Z., & Meng, L. (2012). China’s provincial CO2 emissions embodied in international and interprovincial trade. Energy Policy, 42, 486–497. doi: 10.1016/j.enpol.2011.12.015
Huang, Y., Chen, X., Zhu, H., Huang, C., & Tian, Z. (2019). The heterogeneous effects of FDI and foreign trade on CO2 emissions: Evidence from China. Mathematical Problems in Engineering. doi: 10.1155/2019/9612492
International Energy Agency. (2020). CO2 emissions from fuel combustion. Retrieved from: https://iea.blob.core.windows.net/assets/6296011e-4fed-40c3-95a0-1367a4c4484a/CO2Highlights2020.xls
IPCC. (2014). Climate change 2014: Synthesis report. Contribution of working groups I, II and III to the fifth assessment report of the Intergovernmental Panel on Climate Change [Core Writing Team, R.K. Pachauri and L.A. Meyer (eds.)]. IPCC, Geneva, Switzerland
IPCC. (2018). Framing and context. In Global Warming of 1.5°C., (pp 57–71). Retrieved from: https://www.ipcc.ch/site/assets/uploads/sites/2/2019/05/SR15_Chapter1_Low_Res.pdf
Jayanthakumaran, K., Verma, R., & Liu, Y. (2012). CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India. Energy Policy 42, 450-460. doi: 10.1016/j.enpol.2011.12.010
Korves, N., Martinez-Zarzoso, I., & Monika, A. (2011). Is free trade good or bad for the environment? New empirical evidence. In Climate Change - Socioeconomic Effects. doi: 10.5772/23008
Lenzen, M., Murray, J., Sack, F., & Wiedmann, T. (2007). Shared producer and consumer responsibility - Theory and practice. Ecological Economics, 61(1), 27–42. doi: 10.1016/j.ecolecon.2006.05.018
Mahmood, H., Maalel, N., & Zarrad, O. (2019). Trade openness and CO2 emissions: Evidence from Tunisia. Sustainability,11(12). doi: 10.3390/su10023295
Managi, S., Hibiki, A., & Tsurumi, T. (2009). Does trade openness improve environmental quality? Journal of Environmental Economics and Management, 58(3), 346-363. doi: 10.1016/j.jeem.2009.04.008
Mgbemene, C. A., Nnaji, C. C., & Nwozor, C. (2016). Industrialization and its backlash: Focus on climate change and its consequences. Journal of Environmental Science and Technology, 9(4), 301-316. doi: 10.3923/jest.2016.301.316
Nakano, S., Okamura, A., Sakurai, N., Suzuki, M., Tojo, Y., & Yamano, N. (2009). The measurement of CO2 embodiments in international trade. In OECD Science, Technology and Industry Working Papers (Vol. 3). doi: 10.1787/18151965
Oktavilia, S., & Firmansyah, F. (2016). The relationships of environmental degradation and trade openness in Indonesia. International Journal of Economics and Financial Issues, 6(6):125-129
Rahman, M. Z. (2013). Relationship between trade openness and carbon emission: A case of Bangladesh. Journal of Empirical Economics, 1(4), 126-134
Rogelj, J., Shindell, D., Jiang, K., Fifita, S., Forster, P., Ginzburg, V., Handa, C., Kheshgi, H., Kobayashi, S., Kriegler, E., Mundaca, L., Séférian, R., & Vilariño, M. V. (2018). Mitigation pathways compatible with 1.5°c in the context of sustainable development. In Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission path. IPCC Special Report Global Warming of 1.5 oC.. Retrieved from: https://www.ipcc.ch/site/assets/uploads/sites/2/2019/02/SR15_Chapter2_Low_Res.pdf
Saboori, B., Sulaiman, J. Bin, & Mohd, S. (2012). An empirical analysis of the environmental kuznets curve for co2 emissions in Indonesia: The role of energy consumption and foreign trade. International Journal of Economics and Finance, 4(2), 243-251. doi: 10.5539/ijef.v4n2p243
Shahbaz, M., Hye, Q. M. A., Tiwari, A. K., & Leitão, N. C. (2013). Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia. Renewable and Sustainable Energy Reviews, 25, 109-121. doi: 10.1016/j.rser.2013.04.009
Shahbaz, M., & Leitão, C. N. (2013). Portuguese carbon dioxide emissions and economic growth: A time series analysis. Bulletin of Energy Economics, 1, 1–7
Shahbaz, M., Tiwari, A. K., & Nasir, M. (2013). The effects of financial development, economic growth, coal consumption and trade openness on CO2 emissions in South Africa. Energy Policy, 61, 1452-1459 doi: 10.1016/j.enpol.2013.07.006
Sharma, S. S. (2011). Determinants of carbon dioxide emissions: Empirical evidence from 69 countries. Applied Energy, 88(1), 376–382. doi: 10.1016/j.apenergy.2010.07.022
Somanathan, E., Sterner, T., Sugiyama, T., Chimanikire, D., Dubash, N. K., Essandoh-Yeddu, J., Fifita, S., Goulder, L., Jaffe, A., Labandeira, X., Managi, S., Mitchell, C., Montero, J. P., Teng, F., & Zylic, T. (2014). National and sub-national policies and institutions. In Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, (pp.1141–1205). Cambridge University Press. Retrieved from: https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter15.pdf
Squalli, J., & Wilson, K. (2011). A new measure of trade openness. World Economy, 34(10), 1745-1770. doi: 10.1111/j.1467-9701.2011.01404.x
Stoessel, M. (2001). Trade liberalization and climate change. The Graduate Institute of International Studies, Geneva, (pp.69–88)
Weber, C. L., Peters, G. P., Guan, D., & Hubacek, K. (2008). The contribution of Chinese exports to climate change. Energy Policy, 36(9), 3572–3577. doi: 10.1016/j.enpol.2008.06.009
Yunfeng, Y. F., & Laike, Y. K. (2010). China’s foreign trade and climate change: A case study of CO2 emissions. Energy Policy, 38(1), 350-356. doi: 10.1016/j.enpol.2009.09.025
Zhang, S., Liu, X., & Bae, J. (2017). Does trade openness affect CO2 emissions: evidence from ten newly industrialized countries? Environmental Science and Pollution Research, 24, 17616–17625. doi: 10.1007/s11356-017-9392-8
Zhang, Z., Guo, J., & Hewings, G. J. D. (2014). The effects of direct trade within China on regional and national CO2 emissions. Energy Economics, 46, 161–175. doi: 10.1016/j.eneco.2014.09.011

Last update:

No citation recorded.

Last update:

No citation recorded.

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

As an article writer, the author has the right to use their articles for various purposes, including use by institutions that employ authors or institutions that provide funding for research. Author rights are granted without special permission.

Author who publishes a paper at JWL has the broad right to use their work for teaching and scientific purposes without the need to ask permission, including: used for (i) teaching in the author's class or institution, (ii) presentation at meetings or conferences and distributing copies to participants ; (iii) training conducted by the author or author's institution; (iv) distribution to colleagues for research use; (v) use in the compilation of subsequent authors' works; (vi) inclusion in a thesis or dissertation; (vi) reuse of part of the article in another work (with citation); (vii) preparation of derivative works (with citation); (viii) voluntary posting on open websites operated by authors or author institutions for scientific purposes (follow the CC BY-NC-SA 4.0 License).

Authors and readers can copy and redistribute material in any media or format, and mix, modify, and build material for any purpose but they must provide appropriate credit (provide article citation or content), providing links to the license, and indicate if there are changes.

The authors submitting a manuscript do so on the understanding that if accepted for publication, copyright of the article shall be assigned to Jurnal Wilayah dan Lingkungan (JWL). Copyright encompasses rights to reproduce and deliver the article in all form and media, including reprints, photographs, microfilms and any other similar reproductions, as well as translations.

Reproduce any part of this journal, its storage in the database or its transmission by all forms or media is permitted does not need for written permission from JWL. However, it should be cited as an honor in academic manners

JWL and the Department of Urban and Regional Planning of Diponegoro University and the Editor make every effort to ensure that there are no data, opinions, or false or misleading statements published in JWL. However, the content of the article is the sole and exclusive responsibility of each author.

The Copyright Transfer Form can be downloaded here: [Copyright Transfer Form - Indonesian] [Copyright Transfer Form - English]. The copyright form should be signed originally and send to the Editor in the form of printed letters, scanned documents sent via email or fax.