Indonesia: Comparison Between the Most Consumption of Renewable and Non-Renewable Energy Toward CO2 Emissions

Indonesia is a developing country with a major opportunity for economic expansion. As a result, Indonesia is experiencing an increasing pattern of electricity consumption and CO2 emissions. However, the world, including Indonesia, has agreed to transform non-renewable energy sources into clean energy and is progressively making efforts to achieve SDG7, which aims to generate sustainable energy by 2030. Hence, the purpose of this study is to examine the effects of power consumption derived from non-renewable energy sources (specifically fuel) and renewable energy sources (specifically hydroelectricity) on CO2 emissions in Indonesia. Indonesia is also known as the fourth largest population in the world. Therefore, this study also includes urban and total population as independent variables. The Autoregressive Distributed Lag (ARDL) cointegration analysis technique is used in this study to examine both the short and long run for the period of years from 1980–2021. The finding of this study shows that CO2 emissions in Indonesia are rising as a result of economic activity, population growth, and the high dependence on fossil fuels as electrical energy.