Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition

All ASEAN countries have achieved extraordinarily high growth rates in their history of economic development. They relied on new energy efficiency technologies to reduce their energy intensity while avoiding the rebound effect. Academics debate told that the rebound effect happened due to the false...

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Main Authors: Eka Sudarmaji, Noer Azam Achsani, Yandra Arkeman, Idqan Fahmi
Format: Article
Language:English
Published: Bogor Agricultural University 2022-05-01
Series:Indonesian Journal of Business and Entrepreneurship
Online Access:https://journal.ipb.ac.id/index.php/ijbe/article/view/35060
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author Eka Sudarmaji
Noer Azam Achsani
Yandra Arkeman
Idqan Fahmi
author_facet Eka Sudarmaji
Noer Azam Achsani
Yandra Arkeman
Idqan Fahmi
author_sort Eka Sudarmaji
collection DOAJ
description All ASEAN countries have achieved extraordinarily high growth rates in their history of economic development. They relied on new energy efficiency technologies to reduce their energy intensity while avoiding the rebound effect. Academics debate told that the rebound effect happened due to the false policies. Hence, the other strategy to stimulate increased energy efficiency in the economic sector is essential for government policy in overcoming resource constraints. This study used the logarithmic-mean Divisia index (LMDI) decomposition and KAYA identity to recognize the determinant factors of carbon emissions and rebound effect changes in ASEAN countries. This study also analyzed the factors behind the shift in ASEAN's carbon emissions and identified the differences between ASEAN member countries. The carbon emissions are decomposed into the population, GDP growth, energy intensity, and carbon intensity. One of the purposes of this paper advocated enhancing efficiency, notably in the energy efficiency sector's plan to encourage government measures. According to the research findings, substantial energy rebounds in Indonesia have revealed that energy efficiency gains in Indonesia may be related to the rebound effect. Indonesia sought to go in this direction, with the national energy policy aiming to lower energy efficiency by 1% each year to stimulate energy savings in all sectors. Keywords: ASEAN, energy efficiency, kaya index, LMDI, rebound effect
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spelling doaj.art-9692aced172e4b32a1e6d234c2f23be72023-03-15T03:29:07ZengBogor Agricultural UniversityIndonesian Journal of Business and Entrepreneurship2407-54342407-73212022-05-018224024010.17358/ijbe.8.2.24035060Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI DecompositionEka Sudarmaji0Noer Azam Achsani1Yandra Arkeman2Idqan Fahmi3University of Pancasila, IndonesiaSchool of Business, IPB University, IndonesiaDepartment of Agroindustrial Technology, Faculty of Agricultural Engineering and Technology, IPB University. Jl Dramaga, IPB Darmaga Campus, Bogor 16680, IndonesiaSchool of Business, IPB University, IndonesiaAll ASEAN countries have achieved extraordinarily high growth rates in their history of economic development. They relied on new energy efficiency technologies to reduce their energy intensity while avoiding the rebound effect. Academics debate told that the rebound effect happened due to the false policies. Hence, the other strategy to stimulate increased energy efficiency in the economic sector is essential for government policy in overcoming resource constraints. This study used the logarithmic-mean Divisia index (LMDI) decomposition and KAYA identity to recognize the determinant factors of carbon emissions and rebound effect changes in ASEAN countries. This study also analyzed the factors behind the shift in ASEAN's carbon emissions and identified the differences between ASEAN member countries. The carbon emissions are decomposed into the population, GDP growth, energy intensity, and carbon intensity. One of the purposes of this paper advocated enhancing efficiency, notably in the energy efficiency sector's plan to encourage government measures. According to the research findings, substantial energy rebounds in Indonesia have revealed that energy efficiency gains in Indonesia may be related to the rebound effect. Indonesia sought to go in this direction, with the national energy policy aiming to lower energy efficiency by 1% each year to stimulate energy savings in all sectors. Keywords: ASEAN, energy efficiency, kaya index, LMDI, rebound effecthttps://journal.ipb.ac.id/index.php/ijbe/article/view/35060
spellingShingle Eka Sudarmaji
Noer Azam Achsani
Yandra Arkeman
Idqan Fahmi
Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
Indonesian Journal of Business and Entrepreneurship
title Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
title_full Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
title_fullStr Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
title_full_unstemmed Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
title_short Determinants of Carbon Emission and Rebound Effect in Asean Countries: Kaya and LMDI Decomposition
title_sort determinants of carbon emission and rebound effect in asean countries kaya and lmdi decomposition
url https://journal.ipb.ac.id/index.php/ijbe/article/view/35060
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AT yandraarkeman determinantsofcarbonemissionandreboundeffectinaseancountrieskayaandlmdidecomposition
AT idqanfahmi determinantsofcarbonemissionandreboundeffectinaseancountrieskayaandlmdidecomposition