Embodied Carbon Emission Analysis of Industrial Sector Based on Input-Output Analysis : Case Study in Bitung City, Indonesia.

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Abstract Summary
Economic development in Indonesia has created a negative impact on natural resources and the environment because it is more concerned with economic aspects, without considering social and environmental aspects. The Paris Agreement central aim is to keep a global temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial level. Indonesia’s Intended Nationally Determined Contribution (INDC) includes an unconditional Greenhouse Gas (GHG) emission reduction target of 29 percent against a 2030 business-as-usual (BAU) scenario. Bitung SEZ has the status of Special Economic Zones (SEZ) for the field of fisheries, oil industry, and other logistical support in the eastern region of Indonesia recently launched by the Indonesian government since 2014. Based on data from Statistics of Bitung City (BPS), Gross Domestic Regional Product (GRDP) at Current Prices in Bitung City in 2017 valued at 14.09 trillion rupiah, experiencing an increase compared to 2016 worth 12.68 trillion Rupiah. While GDRP on the basis of the constant price of 2017 is worth 10.13 trillion rupiah, and in 2016 it is worth 9.54 trillion rupiah. The largest share of GDRP according to successive business fields in Bitung City in 2017 was the Processing Industry 33.63 percent. The aim of this paper is to build a model of environment-economy linkages by using Environmentally extended Input-Output analysis. The paper presents the conceptual and analytical framework of the Input-Output approach to the Bitung City. The model uses annual Input-Output (I-O) tables, support estimation equations for technical coefficients, macro indicators and other variables. The I-O Model is based on the Bitung City I-O tables and the methodology developed by Wassily Leontied. The Model databases uses the 2017 I-O tables and data series provided by Statistics of Bitung City (BPS) for 58 sectors of the economy, which are aggregated into seventeen sectors. These analysis lead to two main conclusions. First, the results showed that there were three economic sectors that had a major impact on environmental degradation, which are: (1) the corporate services sector, (2) the sector of providing food and drink (3) the electricity and gas procurement sector. Second, green economy policy-making.
Abstract ID :
ISO575
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Fresh graduate
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Universitas Islam Bandung
Lecture
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Universitas Islam Bandung

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