Testing for Industrial Emission Convergence in Indonesia: Case in Java Island

Abstract

This main objective of this study is to test emissions convergence, absolute and conditional, of manufacturing industries among provinces in Java Island as an industrial base and economic growth in Indonesia. Data consist of six provinces during 2000-2009. Econometrics technique is applied to estimate dynamic model of the convergence. The result shows that the emissions convergence, both absolute and condition, is not confirmed. In other word, emission growth among the provinces tends to be divergent. Statistical test suggest that the emission growth is affected by economic growth and technique effect.