Does Oil Price Affect the Economic Growth in Somalia Asymmetrically?

Indonesia is the most energy-intensive country in Southeast Asia. Indonesia's energy consumption reaches 40 percent of the total energy consumption in the Southeast Asian region. This study aims to analyze the relationship between economic growth and energy consumption in Indonesia in 2000-2021. The variables used are oil and gas GDP, energy consumption, global price, net exports and imports, foreign investment, and domestic investment. The data used is obtained from macroeconomic data and requires stationarity testing. This study uses a quantitative research type to assess energy consumption and its relationship with oil and gas GDP in Indonesia with the Auto-Regressive Distributed Lag (ARDL) Model Approach. The results of this study indicate that increasing development and dynamic economic growth will be accompanied by increasing energy demand. The conclusion of this study is that the ARDL model estimation results show significant differences in the influence of variables on oil and gas GDP in Indonesia in the short and long term.

Section: Introductionmentioning

confidence: 99%

The Unsustainable Path: Assessing Indonesia’s Reliance on Fossil Energy in Economic Growth

Sukanto,

Azwardi,

Hamira

et al. 2024

“…Moreover, the rate of economic development in every country is influenced by a wide range of factors such as energy consumption and industrialization (Warsame, 2022a). To stimulate a rapid rate of growth, several economies have used development strategies based on the distinctive traits of each country and its natural resources which are available.…”

Section: Introductionmentioning

confidence: 99%

Testing Environmental Kuznets Curve Hypothesis in Somalia: Empirical Evidence from ARDL Technique

Hussein,

Warsame

2023

Economic growth is typically attributed as the fundamental cause of environmental problems due to higher production which generates more pollution. The EKC hypothesis is used to test the link between economic growth and environmental pollution. In this regard, this study aims to ascertain the validity of the EKC hypothesis in Somalia using time series data spanning between 1989 to 2020. The autoregressive distributed lag (ARDL) technique is applied to verify the presence of EKC and integrations between the sampled variables. According to the empirical result, it was revealed that all the regressors are statistically significant except trade openness. Agriculture production and squared economic growth are negatively related to environmental pollution whereas economic growth significantly impedes environmental quality in Somalia. Hence, an inverted U-shaped relation between growth and pollution has been found confirming the EKC hypothesis. In contrast, both economic growth and squared growth Granger cause environmental pollution but not vice versa. Policymakers should develop environmental policies to help reduce pollution emissions in order to achieve economic sustainability in the country by promoting and investing in cleaner energy resources to improve Somalia’s economy's overall energy efficiency.

“…Environmental pollution and economic growth are related to each other, since increasing environmental pollution results in increased economic productivity. Moreover, Energy is a crucial component of productivity and is regarded as an engine for growing economy (Warsame, 2022). The standard of living is often greater in countries with higher energy usage.…”

Section: Introductionmentioning

confidence: 99%

The Nexus between Economic Growth, Energy Consumption, and Environmental Degradation in Kenya

Hussein,

Warsame,

Barre

et al. 2023

Energy is a crucial component of productivity and is regarded as an engine for economic growth. In countries where more energy is consumed, the standard of living is frequently higher. Yet utilizing energy also leads to the emission of harmful greenhouse gases like carbon dioxide emissions (CO2) and sulphur dioxide emissions (SO2). In this regard, this study examines the relationship between economic growth, energy consumption, and environmental degradation in Kenya using the Autoregressive Distributed Lag model (ARDL) from 1990 to 2019. The empirical results find that energy consumption and economic growth increase CO2 emissions both in the short- and long-run in Kenya except for economic growth which is inconsequential in the short run. However, the study suggests the implementation of environmental regulations that would contribute in lowering pollution emissions. In addition, implementing policies that encourage investing in cleaner energy sources will reduce environmental pollution. The Kenyan policymakers should undertake various technological, behavioural, and other changes to increase its economy's overall energy efficiency.