Track: Sustainability
Abstract
STIRPAT model is employed to review Indonesia's carbon emission's residential and demographic aspects. Indonesia is on its way to combat carbon emissions. Indonesia is the fourth most populous country in the world, with the current population reaching 275 million in 2020. The country also faced massive economic growth following the growth of population, positioned at 7th in terms of GDP. With the current growth in population and economy, it is needed to identify whether this growth, which also induced by the decision of the population in expanding their family members, could influence the increase of the nation’s carbon emission. The effect of some aspects not included in the official government plan, namely population, economy, and residential aspect, is included in the estimation model. Household energy consumption is one of the most significant contributors to Indonesia's Energy-based emissions. Therefore, this paper tries to see whether population size and household could impact Indonesia's carbon emissions. Due to multicollinearity detected on the OLS estimation of the STIRPAT model, the model is regressed the second time using ridge regression. The result shown that Non-Dependent Population (DEP) > Economic Inequality (GINI) > energy consumption (EC) > Total Population (TP) > Urbanization (U) > Household Energy Consumption (HEC) > Gross Domestic Product (GDP) > Household Expenditure (EXP) > Family Size (FAM) > Total Fertility Rate (TFR). It is then found that the economic aspect is the most significant contributor to the carbon emission increase. Therefore, suggestions regarding carbon emission could focus on improving the economy, especially improvement in green industrialization and economic equality for the population. However, mitigation from population aspects could not be overlooked, as the population aspect contributes to driving the increase of carbon emission.