The Nexus of GDP and Sustainability: An Analysis of Indonesia^s Renewable Energy, Natural Resource Rent, and Economic Growth Sri Harnani, Meinarti Puspaningtyas,Suryaning Bawono, Muhammad Afif
STIE Jaya Negara Tamansiswa Malang, Indonesia
STIE Kertanegara Malang, Indonesia
Abstract
This paper study aims to explore and test the relationship between GDP and Renewable Electricity Output, Renewable Energy Consumption, and Total Natural Resource Rent in Indonesia. This research uses Vector Error Correction Model (VECM) analysis on World Bank data from 1995 to 2019, with a primary focus on Indonesia, to investigate the complex relationship between GDP and key sustainability metrics, including Renewable Electricity Output, Renewable Energy Consumption, and Total Consumption Renewable energy. Through this analysis, this research highlights how Indonesia^s economic growth is influenced by changes in the use consumption of renewable energy, utilization of natural resources, and its impact on the environment over a quarter of a century. Ultimately, this research provides important insights for policy makers and researchers on Indonesia^s evolving sustainability landscape, thereby facilitating the development of strategies that balance economic growth and environmental conservation. These findings underscore the complex interrelationships between these factors, and emphasize the need for balanced and informed policy-making to ensure future economic prosperity and effective environmental management.
Keywords: GDP, Renewable Electricity Output, Renewable Energy Consumption, Total Natural Resource Rent
