Economic, Energy and Co2 Intensity Valuation in Indonesia's Manufacturing Industry

Abstract

The analysis on manufacturing sector mostly focuses on economic valuation such as output, value added, and employment, but few studies attempt simultaneously to analyze economic, energy consumption and carbon dioxide emissions (CO₂). We applied the graph theory to select the dominant industries based on selected criteria. We found that food industry became a dominant industry. However, none industry was dominant for the all criteria. This implied that pro growth is not always similar with pro environment, even the two criteria can be conflicted one and another. We argue that different characteristics of industry need to be considered in evaluating industry performance. Finally, in terms of policy intervention, we suggest government to construct intensity indicator and to develop broad policy framework in enhancing energy efficiency.