Exploring the mitigation potential for carbon dioxide emissions in Indonesia’s manufacturing industry: an analysis of firm characteristics

This study investigates ways to effectively reduce carbon dioxide (CO2) emissions in Indonesia’s manufacturing industry, by firm characteristics. It is important determine the characters that have greatest potential decrease CO2 emissions. The Logarithmic Mean Divisia Index (LMDI) method used decompose into key factors influencing changes emissions, such as economic activity, industrial structure, energy intensity, and coefficient during 2010–2018 period. findings indicate sub-sectors vary. High technology firms had lowest average compared with other technology. Large-sized than small medium firms. Foreign private lower national did. Firms Java–Bali location had, on average, highest those outside Java–Bali. Exporting intensity non-exporting study’s novelty an analysis of effect components affect groups based their characteristics so policymakers can focus reduction certain firms, namely use most intensively, inefficient, uses low-quality energy. Comparative using reveals energy-intensive firms’ growth determines industry.