The Nexus Between Electric Energy and Renewable Energy on Carbon Emissions

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:This paper contributes a dynamic PAM-RLS framework for disaggregated electricity sources and provides empirical evidence on the modest impact of renewables in a coal-dependent context.

🏢実務担当者:Energy companies and sustainability teams can use these findings to understand the limited near-term effect of renewable expansion without structural reforms.

🏛政策担当者:Policymakers in coal-dependent economies should note that renewable energy alone is insufficient; institutional readiness and investment scale must be addressed simultaneously.

Developing markets like Indonesia still use natural gas, oil and coal as the main sources of electricity. These traditional energy sources will run out soon. Nowadays, Indonesia needs to pursue renewable energy while evaluating the environmental impact of carbon emissions from electricity generation and the use of oil, gas, and coal. This paper aims to investigate the relationship between the three main energy sources of electricity and renewable electricity to carbon emissions from Indonesia. Data series from 1990 to 2020, compiled by the International Energy Agency (IEA), are identified using the Partial Adjuster Model (PAM) with Robust Least Squares (RLS). Empirical results found that all major energy sources have a positive and significant effect on carbon emissions in both the short and long run. Specifically, electricity from coal has the most dominant impact, while gas contributes the least to carbon emissions. In both the short and long term, renewable electricity has been shown to reduce carbon emissions in Indonesia, albeit relatively modestly. In addition to the main findings, this paper implicitly reveals a strong structural dependence on coal-based electricity in Indonesia, which limits the effectiveness of efforts to reduce emissions despite the development and expansion of renewable energy. The findings indicate that the limited impact of renewable energy is due to limitations in institutional readiness, investment scale, and technological capacity. This paper also contributes to the literature by integrating disaggregated electricity sources (gas, oil, and coal) into the dynamic PAM-RLS framework, thereby offering a more nuanced and comprehensive perspective than conventional aggregate approaches. Notably, it provides policy implications by emphasising the urgency of accelerating renewable energy development to achieve environmental sustainability and inclusive economic growth. Other implications of the current study are discussed in the future.

• openalex https://doi.org/10.15330/jpnu.13.2.117-128first seen 2026-07-27 04:48:48