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Paper ID: 180

Implications of Gas Emission Level Due to Covid-19 National Policy on Output and Gross Domestic Product (GDP) Sector in Indonesia 2020-2021

The polemic of the Covid-19 pandemic, which has attacked 216 countries in the world, including Indonesia, is still not over. The spread of this virus is so fast and massive, that the governments of each country make related policies to minimize the emergence of new cases. Each country’s health protocol rules refer to international appeals from the World Health Organization (WHO), in the form of establishing rules for the use of masks, routine hand washing, social distancing, restrictions on community activity and mobility, industrial activities, and lock down. The determination of various policies for handling Covid-19 cases in various countries, of course, has an impact on the environment, namely the level of emissions. Griffiths[1] found that the implementation of social distancing, lock down, and curfew policies showed that CO emissions were reduced. The level of CO gas emission has a causal relationship with GDP[2]. When GHG emission intensity decreases by 5%, GDP can grow by as much as 6%[3]. However, Smith[4] stated otherwise that every Tg reduction in GHG (Greenhouse Gases) is associated with a 0.16% decrease in GDP of the analyzed sector. This study aims to analyze the implications of policies related to the handling of the Covid-19 pandemic on emission levels in ASEAN and further analyze the implications of emission levels during the Covid-19 pandemic on output and Gross Domestic Product (GDP) per sector in Indonesia. The methods used in this study are (1) the Vector Autoregression (VAR) model to analyze the implications of government policies related to the handling of the Covid-19 pandemic on emission levels in ASEAN, and (2) the Social Accounting Matrix (SAM) with the Socio-Economic Balance System approach ( SNSE) to analyze the implications of emission levels during the Covid-19 pandemic on output and Gross Domestic Product (GDP) per sector in Indonesia. The output targets of this research are (1) the implications of government policies related to the handling of the Covid-19 pandemic on emission levels in ASEAN, and (2) the implications of emission levels during the Covid-19 pandemic on output and Gross Domestic Product (GDP) per sector in Indonesia

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