Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics
This study investigates ways to effectively reduce carbon dioxide (CO2) emissions in Indonesia’s manufacturing industry, by firm characteristics. It is important to determine the firm characters that have the greatest potential to decrease CO2 emissions. The Logarithmic Mean Divisia Index (LMDI) met...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-01-01
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| Series: | Carbon Management |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/17583004.2022.2042394 |
| _version_ | 1797678360917180416 |
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| author | Tita Rosita Rachmawati Dwi Estuningsih Dewi Pujo Ningsih Zaekhan Nachrowi Djalal Nachrowi |
| author_facet | Tita Rosita Rachmawati Dwi Estuningsih Dewi Pujo Ningsih Zaekhan Nachrowi Djalal Nachrowi |
| author_sort | Tita Rosita |
| collection | DOAJ |
| description | This study investigates ways to effectively reduce carbon dioxide (CO2) emissions in Indonesia’s manufacturing industry, by firm characteristics. It is important to determine the firm characters that have the greatest potential to decrease CO2 emissions. The Logarithmic Mean Divisia Index (LMDI) method is used to decompose CO2 emissions into the key factors influencing changes in CO2 emissions, such as economic activity, industrial structure, energy intensity, energy structure, and emissions coefficient during the 2010–2018 period. The findings indicate that changes in CO2 emissions in industrial sub-sectors vary. High technology firms had the lowest average emissions compared to firms with other technology. Large-sized firms had the lowest emissions than small and medium firms. Foreign private firms had lower emissions than national private firms did. Firms in the Java–Bali location had, on average, highest emissions than those outside Java–Bali. Exporting firms had lower average emissions intensity compared to non-exporting firms. This study’s novelty is an analysis of the effect of components that affect changes in CO2 emissions in firm groups based on their characteristics so that policymakers can focus on the potential reduction in CO2 emissions in certain groups of firms, namely firms that use the most energy intensively, is inefficient, and uses low-quality energy. Comparative analysis using firm characteristics reveals that energy-intensive firms’ economic growth determines changes in CO2 emissions in Indonesia’s manufacturing industry. |
| first_indexed | 2024-03-11T22:58:36Z |
| format | Article |
| id | doaj.art-6b7f321f4b62407badb1c1e87b16e670 |
| institution | Directory Open Access Journal |
| issn | 1758-3004 1758-3012 |
| language | English |
| last_indexed | 2024-03-11T22:58:36Z |
| publishDate | 2022-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Carbon Management |
| spelling | doaj.art-6b7f321f4b62407badb1c1e87b16e6702023-09-21T15:09:07ZengTaylor & Francis GroupCarbon Management1758-30041758-30122022-01-01131174110.1080/17583004.2022.20423942042394Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristicsTita Rosita0Rachmawati Dwi Estuningsih1Dewi Pujo Ningsih2Zaekhan3Nachrowi Djalal Nachrowi4Mathematics and Statistics Group, Department of Analytical Chemistry, Politeknik AKA BogorMathematics and Statistics Group, Department of Analytical Chemistry, Politeknik AKA BogorMathematics and Statistics Group, Department of Analytical Chemistry, Politeknik AKA BogorResearch Cluster on Economic Modelling, Industrial and Environmental Economics, Centre for Agro-Based Industry, Ministry of IndustryGraduate Programme in Economics, Department of Economics, Faculty of Economics and Business, Universitas IndonesiaThis study investigates ways to effectively reduce carbon dioxide (CO2) emissions in Indonesia’s manufacturing industry, by firm characteristics. It is important to determine the firm characters that have the greatest potential to decrease CO2 emissions. The Logarithmic Mean Divisia Index (LMDI) method is used to decompose CO2 emissions into the key factors influencing changes in CO2 emissions, such as economic activity, industrial structure, energy intensity, energy structure, and emissions coefficient during the 2010–2018 period. The findings indicate that changes in CO2 emissions in industrial sub-sectors vary. High technology firms had the lowest average emissions compared to firms with other technology. Large-sized firms had the lowest emissions than small and medium firms. Foreign private firms had lower emissions than national private firms did. Firms in the Java–Bali location had, on average, highest emissions than those outside Java–Bali. Exporting firms had lower average emissions intensity compared to non-exporting firms. This study’s novelty is an analysis of the effect of components that affect changes in CO2 emissions in firm groups based on their characteristics so that policymakers can focus on the potential reduction in CO2 emissions in certain groups of firms, namely firms that use the most energy intensively, is inefficient, and uses low-quality energy. Comparative analysis using firm characteristics reveals that energy-intensive firms’ economic growth determines changes in CO2 emissions in Indonesia’s manufacturing industry.http://dx.doi.org/10.1080/17583004.2022.2042394carbon dioxide (co2)energyfirm characteristicsmanufacturing industrylmdi |
| spellingShingle | Tita Rosita Rachmawati Dwi Estuningsih Dewi Pujo Ningsih Zaekhan Nachrowi Djalal Nachrowi Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics Carbon Management carbon dioxide (co2) energy firm characteristics manufacturing industry lmdi |
| title | Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics |
| title_full | Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics |
| title_fullStr | Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics |
| title_full_unstemmed | Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics |
| title_short | Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics |
| title_sort | exploring the mitigation potential for carbon dioxide emissions in indonesia s manufacturing industry an analysis of firm characteristics |
| topic | carbon dioxide (co2) energy firm characteristics manufacturing industry lmdi |
| url | http://dx.doi.org/10.1080/17583004.2022.2042394 |
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