Title:
THE EFFECT OF POPULATION, GDP, OIL CONSUMPTION, AND FDI ON CO2 EMISSIONS IN ASEAN 5 DEVELOPING COUNTRIES

Authors:
Winny Perwithosuci, Izza Mafruhah, Evi Gravitiani, Indonesia

Abstract:

Carbon dioxide emissions (CO2) is a kind of gas that caused Global Warming. Intergovernmental Panel on Climate Change (IPCC) reported that CO2 is resulted by human activities such as economic activities. This study aims to examine the effect of population, Gross Domestic Product (GDP), oil consumption, and Foreign Direct Investment (FDI) to CO2 emissions in ASEAN 5 developing countries that are Malaysia, Indonesia, Thailand, Philippines, and Vietnam from 1985 to 2017. The data generated from World Bank and British Petroleum. Due to the greater number of time series rather than cross-section, this study employed Fixed-Effects model to estimate panel data. However, Hausman test also revealed that Fixed-Effects is statistically preferable. The Fixed-Effect estimation results revealed that population, GDP, and oil consumption affect CO2 emissions positively significant at 5% level. Meanwhile, FDI affect CO2 emissions negatively significant at 10% level. The negative relationship between CO2 emissions and FDI confirmed The Halo Effect hypothesis. Low carbon technologies should be utilized as policy recommendation to reduce CO2 emissions