Realizing Green Economy: Synergies Between Waste Management and Economic Growth In The Oil And Gas Sector In Indonesia
Keywords:
Green Growth; Waste Generation; Population Density; Energy Consumption
Abstract
The implementation of a green economy is a key strategy in promoting sustainable development, especially in strategic sectors such as oil and gas in Indonesia. Green economy aims to improve human welfare in a sustainable manner by minimizing risks and pressures on the environment. This study aims to analyze the causality relationship between Gross Regional Domestic Product (GRDP), waste generation, population density, and energy use. The method used is panel data analysis with the Vector Error Correction Model (VECM) approach, which is able to identify long-term and short-term relationships between variables. The results show that there is a unidirectional causality relationship between waste generation and GRDP, as well as between population density and GRDP. In the long run, there is a significant relationship between population density and regional economic growth. Meanwhile, in the short term, there is a relationship between GRDP and population density. These findings emphasize the importance of waste management and population planning as an integral part of green economic development strategies in the oil and gas sector. This research contributes to the strengthening of environment-based policies that support the integration between economic development and ecosystem sustainability.
References
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Teklie, D. K., & Yağmur, M. H. (2024). The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries. Sustainability (Switzerland), 16(14). https://doi.org/10.3390/su16146166
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Yang, G., Yin, Y., & Wang, J. (2019). Microbial community diversity during fermentative hydrogen production inoculating various pretreated cultures. International Journal of Hydrogen Energy, 44(26), 13147–13156. https://doi.org/10.1016/j.ijhydene.2019.03.216
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Adhitya Wardhono, Yulia Indrawati, Ciplis Gema Qoriah, M. A. N. (2019). Analisis Data Time Series dalam Model Makroekonomi. Pustaka Abadi.
Ali, J., Rasheed, T., Afreen, M., Anwar, M. T., Nawaz, Z., Anwar, H., & Rizwan, K. (2020). Modalities for conversion of waste to energy — Challenges and perspectives. Science of the Total Environment, 727, 138610. https://doi.org/10.1016/j.scitotenv.2020.138610
Annicchiarico, B., Pelloni, A., & Valenti, F. (2024). Short-run fluctuations and long-run growth with recursive preferences. Macroeconomic Dynamics, 2024, 1–16. https://doi.org/10.1017/S1365100524000336
Azam, M., Jahromy, S. S., Raza, W., Jordan, C., Harasek, M., & Winter, F. (2019). Comparison of the combustion characteristics and kinetic study of coal, municipal solid waste, and refuse-derived fuel: Model-fitting methods. Energy Science and Engineering, 7(6), 2646–2657. https://doi.org/10.1002/ese3.450
Badan Pusat Statistik. (2024). In 5 november.
Boloy, R. A. M., da Cunha Reis, A., Rios, E. M., de Araújo Santos Martins, J., Soares, L. O., de Sá Machado, V. A., & de Moraes, D. R. (2021). Waste-to-Energy Technologies Towards Circular Economy: a Systematic Literature Review and Bibliometric Analysis. Water, Air, and Soil Pollution, 232(7). https://doi.org/10.1007/s11270-021-05224-x
Boubellouta, B., & Kusch-Brandt, S. (2021). Cross-country evidence on Environmental Kuznets Curve in Waste Electrical and Electronic Equipment for 174 Countries. Sustainable Production and Consumption, 25, 136–151. https://doi.org/10.1016/j.spc.2020.08.006
Broughel, J., & Thierer, A. D. (2019). Technological Innovation and Economic Growth: A Brief Report on the Evidence. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3347294
Chen, L., Yu, L., Yin, J., & Xi, M. (2023). Impact of Population Density on Spatial Differences in the Economic Growth of Urban Agglomerations: The Case of Guanzhong Plain Urban Agglomeration, China. Sustainability (Switzerland), 15(19). https://doi.org/10.3390/su151914601
Cheng, J., Shi, F., Yi, J., & Fu, H. (2020). Analysis of the factors that affect the production of municipal solid waste in China. Journal of Cleaner Production, 259, 120808. https://doi.org/10.1016/j.jclepro.2020.120808
Dhealika Syamputri, Mutia Luthfiany Khairunnisa, R. N. (2021). EKONOMETRIKA TERAPAN PADA BIDANG RISET EKONOMI DAN KEUANGAN ISLAM (M. S. Dr. Hj. Aas Nurasyiah (Ed.)). UPI Press.
Dong, J., Tang, Y., Nzihou, A., Chi, Y., Weiss-Hortala, E., & Ni, M. (2018). Life cycle assessment of pyrolysis, gasification and incineration waste-to-energy technologies: Theoretical analysis and case study of commercial plants. Science of the Total Environment, 626, 744–753. https://doi.org/10.1016/j.scitotenv.2018.01.151
Iyamu, H. O., Anda, M., & Ho, G. (2020). A review of municipal solid waste management in the BRIC and high-income countries: A thematic framework for low-income countries. Habitat International, 95(October 2019). https://doi.org/10.1016/j.habitatint.2019.102097
Jamilatun, S., Pitoyo, J., Amelia, S., Ma’arif, A., Hakika, D. C., & Mufandi, I. (2022). Experimental Study on The Characterization of Pyrolysis Products from Bagasse (Saccharum Officinarum L.): Bio-oil, Biochar, and Gas Products. Indonesian Journal of Science and Technology, 7(3), 565–582. https://doi.org/10.17509/ijost.v7i3.51566
Jamilatun, S., Pitoyo, J., & Setyawan, M. (2023). Technical, Economic, and Environmental Review of Waste to Energy Technologies from Municipal Solid Waste. Jurnal Ilmu Lingkungan, 21(3), 581–593. https://doi.org/10.14710/jil.21.3.581-593
Karundeng, Thessa Natasya Mandey, S. L., & Sumarauw, J. S. B. (2018). Analisis Saluran Distribusi Kayu (Studi Kasus Di Cv. Karya Abadi, Manado). Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 6(3), 1748–1757.
Kumar, A., & Samadder, S. R. (2017). A review on technological options of waste to energy for effective management of municipal solid waste. Waste Management, 69, 407–422. https://doi.org/10.1016/j.wasman.2017.08.046
Lumbanraja, P. C., & Lumbanraja, P. L. (2023). Analisis Variabel Ekonomi Hijau (Green Economy Variable) Terhadap Pendapatan Indonesia (Tahun 2011-2020) dengan Metode SEM-PLS. Cendekia Niaga, 7(1), 61–73. https://doi.org/10.52391/jcn.v7i1.836
Manea, E. E., Bumbac, C., Dinu, L. R., Bumbac, M., & Nicolescu, C. M. (2024). Composting as a Sustainable Solution for Organic Solid Waste Management: Current Practices and Potential Improvements. Sustainability (Switzerland), 16(15), 1–25. https://doi.org/10.3390/su16156329
Mohamed, M. M. A., Liu, P., & Nie, G. (2021). Are technological innovation and foreign direct investment a way to boost economic growth? An egyptian case study using the autoregressive distributed lag (ardl) model. Sustainability (Switzerland), 13(6). https://doi.org/10.3390/su13063265
Mohamed, M. M. A., Liu, P., & Nie, G. (2022). Causality between Technological Innovation and Economic Growth: Evidence from the Economies of Developing Countries. Sustainability (Switzerland), 14(6), 1–39. https://doi.org/10.3390/su14063586
Muis, R., Anggraini, N., Ariani, F., Yunus, S., & Zulkifli. (2021). Survey of Environmental Baseline in the Nunukan Agriculture Area, Indonesia. Nature Environment and Pollution Technology, 20(1), 237–242. https://doi.org/10.46488/NEPT.2021.V20I01.025
Muis, R., Anggraini, N., Radde, H. A., Rachman, I., & Matsumoto, T. (2024). Current Update Waste to Energy in Developing Country; A Review and Bibliometric Analysis. Journal of Community Based Environmental Engineering and Management, 8(8), 35–44. https://doi.org/10.23969/jcbeem.v8i1.12000
Nanda, M. A., Sugandi, W., Wijayanto, A. K., Imantho, H., Sutawijaya, A., Nelwan, L. O., Budiastra, I. W., & Seminar, K. B. (2023). The Waste-to-Energy (WtE) Technology to Support Alternative Fuels for Agriculture in the Context of Effective Solid Waste Management in the Jabodetabek Area, Indonesia. Energies, 16(24). https://doi.org/10.3390/en16247980
Nanda, S., & Berruti, F. (2021). Municipal solid waste management and landfilling technologies: a review. Environmental Chemistry Letters, 19(2), 1433–1456. https://doi.org/10.1007/s10311-020-01100-y
Nobre, C., Longo, A., Vilarinho, C., & Gonçalves, M. (2020). Gasification of pellets produced from blends of biomass wastes and refuse derived fuel chars. Renewable Energy, 154, 1294–1303. https://doi.org/10.1016/j.renene.2020.03.077
Pradhan, R. P., Arvin, M. B., & Bahmani, S. (2018). Are innovation and financial development causative factors in economic growth? Evidence from a panel granger causality test. Technological Forecasting and Social Change, 132(February 2017), 130–142. https://doi.org/10.1016/j.techfore.2018.01.024
Rasheed, T., Anwar, M. T., Ahmad, N., Sher, F., Khan, S. U. D., Ahmad, A., Khan, R., & Wazeer, I. (2021). Valorisation and emerging perspective of biomass based waste-to-energy technologies and their socio-environmental impact: A review. Journal of Environmental Management, 287(February), 112257. https://doi.org/10.1016/j.jenvman.2021.112257
Rezaei, H., Panah, F. Y., Lim, C. J., & Sokhansanj, S. (2020). Pelletization of refuse-derived fuel with varying compositions of plastic, paper, organic and wood. Sustainability (Switzerland), 12(11), 1–11. https://doi.org/10.3390/su12114645
Shah, W. U. H., Yasmeen, R., Sarfraz, M., & Ivascu, L. (2023). The Repercussions of Economic Growth, Industrialization, Foreign Direct Investment, and Technology on Municipal Solid Waste: Evidence from OECD Economies. Sustainability (Switzerland), 15(1). https://doi.org/10.3390/su15010836
Sharma, S., Basu, S., Shetti, N. P., Kamali, M., Walvekar, P., & Aminabhavi, T. M. (2020). Waste-to-energy nexus: A sustainable development. Environmental Pollution, 267, 115501. https://doi.org/10.1016/j.envpol.2020.115501
Sidik. (2022). Peningkatan Kapasitas Pemerintah Daerah dalam Pengelolaan Sampah melalui Implementasi Pengurangan dan Penanganan Sampah. In sipsn.menlhk.go.id
Sipra, A. T., Gao, N., & Sarwar, H. (2018). Municipal solid waste (MSW) pyrolysis for bio-fuel production: A review of effects of MSW components and catalysts. Fuel Processing Technology, 175(February), 131–147. https://doi.org/10.1016/j.fuproc.2018.02.012
Širá, E., Kravčáková Vozárová, I., Kotulič, R., & Dubravská, M. (2022). EU27 Countries’ Sustainable Agricultural Development toward the 2030 Agenda: The Circular Economy and Waste Management. Agronomy, 12(10). https://doi.org/10.3390/agronomy12102270
Soukiazis, E., & Proença, S. (2020). The determinants of waste generation and recycling performance across the Portuguese municipalities – A simultaneous equation approach. Waste Management, 114, 321–330. https://doi.org/10.1016/j.wasman.2020.06.039
Teklie, D. K., & Yağmur, M. H. (2024). The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries. Sustainability (Switzerland), 16(14). https://doi.org/10.3390/su16146166
Wang, P., Hu, Y., & Cheng, H. (2019). Municipal solid waste (MSW) incineration fly ash as an important source of heavy metal pollution in China. Environmental Pollution, 252, 461–475. https://doi.org/10.1016/j.envpol.2019.04.082
Yang, G., Yin, Y., & Wang, J. (2019). Microbial community diversity during fermentative hydrogen production inoculating various pretreated cultures. International Journal of Hydrogen Energy, 44(26), 13147–13156. https://doi.org/10.1016/j.ijhydene.2019.03.216
Yang, M., & Kim, J. (2020). Revisiting the relation between renewable electricity and economic growth: A renewable-growth hypothesis. Sustainability (Switzerland), 12(8). https://doi.org/10.3390/SU12083121
Yu, S., & Dong, H. (2020). Uncover cost-benefit disparity of municipal solid waste incineration in Chinese Provinces. Sustainability (Switzerland), 12(2). https://doi.org/10.3390/su12020697
Zambrano-Monserrate, M. A., Ruano, M. A., & Ormeño-Candelario, V. (2021). Determinants of municipal solid waste: a global analysis by countries’ income level. Environmental Science and Pollution Research, 28(44), 62421–62430. https://doi.org/10.1007/s11356-021-15167-9
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