Jejak Karbon di Kawasan SAARC: Analisis Dari Sisi Ekonomi dan Lingkungan

Abstract

Carbon footprint, whose main component is carbon emissions, is the main cause of environmental degradation that has a widespread impact on the survival of communities. The significant increase in carbon emissions in developing countries, particularly in low-middle income countries in the SAARC region, shows that this region has not been able to balance economic growth and environmental preservation. This is in line with the Environmental Kuznets Curve (EKC) theory, which states that economic activities will initially tend to produce pollution. Therefore, this study aims to analyze the relationship between carbon footprint, renewable energy consumption, agricultural land, and industri 4.0 in low-middle income countries in the SAARC region during the period 1992-2021. This study uses the FMOLS regression method to examine the effect of independent variables on dependent variables in the long term. The results show that renewable energy consumption has negative and significant on carbon emissions in the long term. Industri 4.0 have a positive and significant effect on carbon emissions in the long term. Meanwhile, agricultural land has a negative and insignificant effect on carbon emissions in the long term. Thus, SAARC governments need to encourage the transition to renewable energy and implement sustainable industrial development policies.