The industry is the current engine of the Indonesian economy over the past three decades; the economic structure in Indonesia has the transformation from the agriculture sector to the industry sector. The objective of this study is to examine the causality between agricultural, industry, and economic growth in Indonesia. By using the vector error correction model (VECM), this research finds that in the long-term, there is directional causality from the industry added value, economic growth on the agricultural added value. Meanwhile, in the short-term, the variable of industry added value and economic growth has the two-way causality. Besides, the agricultural added value can only affect the industrial added value and economic growth in the short-term. These findings support the idea that the agricultural sector plays a vital role in the economy, such as increasing economic growth and growth in other sectors, especially the industrial sector in this case.JEL Classification: F40, L60, O13, O47

This study analyzes factors affecting rice production and consumption in Indonesia from 1990-2014, the data source is from Central Bureau of Statistics (BPS). The method used is model of multiple linear regression equation with ordinary least square estimator (OLS). Our findings indicate that rice production can be affected by human capital, labor, wages, wetland, urban population, and rice prices; on the other side, technology has no effect on rice production. Other findings on the rice consumption model were influenced by human capital, per capita income, population, and consumption the previous year, and meanwhile, rice prices has no effect to rice consumption in Indonesia. It’s an important note for the government in making the right program policies such as the development of better irrigation systems, empowering the farmers by providing regular training, subsidizing material inputs to farmers, expanding farmland for farmers. Meanwhile, the government needs to create policy such as food diversification, price stabilization security, the increase of rice stock, and other agricultural policies.

The Sustainable Development Goals (SDGs) represent a fundamental global commitment to addressing a wide range of socio-economic and environmental challenges. A key component of these goals is the commitment to ocean sustainability, encapsulated in the concept of the blue economy. The blue economy, emerging in an era characterized by intricate dynamics and openness to transformation, is influenced by various determinants. This study utilizes panel data analysis and the pooled least squares method to investigate the factors influencing the share of the blue economy in the archipelagic provinces of Indonesia from 2012 to 2021. With its vast maritime territory and numerous islands, Indonesia provides a highly relevant context for examining these dynamics. The empirical results indicate that information and communication technology (ICT), fisheries capture, and aquaculture production positively impact the blue economy’s share. Conversely, trade openness and electricity consumption exhibit a negative relationship with the blue economy’s share. Moreover, the analysis reveals that investment does not have a significant effect on the blue economy’s share. These findings underscore the critical importance of developing robust infrastructure and implementing stringent regulatory oversight on fishery product trade to enhance sustainable growth within the blue economy framework.

This study investigates the effect of economic growth, education expenditures, and health expenditures on human development index (HDI) in Jambi Province. This study used panel data of 11 district/cities from 2012 to 2019. The analytical approach was quantitative by applying panel data regression models. The findings of the study indicated that the economic growth, education expenditure, and health expenditure had a significant and positive influence on the human development index. The implication of the model in this study shows that the efforts made by the Jambi provincial government are effective and optimal in allocating education and health spending to encourage increased human capital as measured by a high human development index. This is input in structural reforms in the education and health sectors to ensure that skilled human resources are developed in areas critical to economic development.

This study investigates the relationship between air pollution, economicgrowth, and life expectancy in Indonesia. The observation periodduring 1985-2019 used time-series data obtained from the WorldBank. Quantitative approach by applying two main models, namelythe autoregressive distributed lag (ARDL) model by considering theeffect of time-lapse and Granger causality with vector error correctionmethod. Research findings prove that air pollution has a negativeand significant effect on life expectancy in the long run. Economicgrowth has a positive and significant effect on life expectancy. In theshort run, the current life expectancy is positively and significantlyinfluenced by the life expectancy of the previous period. Air pollutionhas a negative and significant effect on life expectancy, and economicgrowth has a negative and significant effect on life expectancy. Anotherfinding in the Granger causality model is a two-way relationshipbetween air pollution and life expectancy. Other evidence exists of atwo-way relationship between economic growth and air pollution. Inaddition, evidence of a unidirectional relationship of economic growthwith life expectancy in the short run. The cointegration equationshows evidence of a long-run relationship between air pollution,economic growth, and life expectancy.

This study investigates the relationship between economic growth, electricity consumption, and CO2 emissions in Indonesia. The data utilized time series for 1971-2020 obtained from the WDI database 2021. The method utilized the ADRL and VEC models. The findings indicate that in the long run, economic growth and electricity consumption positively affect CO2 emissions. The short-run effect that occurs from economic growth is significant and negative, while the lag of CO2 emission is positive on CO2 emissions. There is a two-way causality between economic growth and electricity consumption in the short run. There is a unidirectional causality flowing from CO2 emissions to economic growth. A significant ECT coefficient has confirmed that the long-run relationship between variables in the model used is valid. The policies offered are applying emission taxes, encouraging energy conservation to control emissions, and encouraging efficient and sustainable electricity supply.How to Cite:Marwa, T., Bashir, A., Atiyantna, D.P., Hamidi, I., Mukhlis, M., Soekanto, S. (2022). The Link between Economic Growth, Electricity Consumption, and CO2 Emissions: Evidence from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 253-272. https://doi.org/10.15408/sjie.v11i2.26286.