Determinants of CO2 Emissions in ASEAN Countries Using Energy and Mining Indicators

Carbon dioxide (CO2) is the main greenhouse gas emitted from human activities. Industrial revolution is one of the triggers to accelerate the quantity of CO2 in the atmosphere which lead to undesirable changes in the cycle of carbon. Like China and United States which are affected by the economic development growth, the atmospheric CO2 level in ASEAN countries is expected to be higher from year to year. This study focuses on energy and mining indicators, namely alternative and nuclear energy, energy production, combustible renewables and waste, fossil fuel energy consumption and the pump price for diesel fuel that contribute to CO2 emissions. Six ASEAN countries were examined from 1970 to 2010 using panel data approach. The result shows that model of cross section-fixed effect is the most appropriate model with the value of R-squared is about 86%. Energy production and fossil fuel energy consumption are found to be significantly influenced to CO2 emissions.